! 16) In the past a common practice forselling a home was to allow the buyer to"assume the mortgage" this meant that thebuyer would be able to take over theexisting mortgage of the seller. Theadvantage of doing this was that theexisting mortgage might have a lowerinterest rate than the current mortgages.Suppose that a seller of a home has aninterest rate of 3% on his existing mortgageand it is locked in for the next 5 years.Suppose also that the best interest ratebuyers can ger for a new mortgage is 6%. Ifthe mortgage is assumed by the buyer,who benefits: the buyer or the seller?Explain

Among the buyer or the seller the benefits will go to the buyer . The details are discussed as…

Answered: 16) In the past a common practice for…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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mmen 94. if an insured dies during the grace period and the premium has not been paid, which The policy has lapsed and no benefit will be paid A pro-rated benefit will be paid based on the amount of time over due The death benefit will be paid less the premium due The beneficiary must reinstate the policy to receive benefits I
6 if an insured dies during the grace period of a life insurance policy before paying the required annual premium the beneficiary will receive 1 A the cash value of the policy, if any B the full-face amount of the policy C the face amount of the policy less an required premiums D a refund of any premiums paid
An additional contribution by the owner to the business is called a(n): 23 OWithdrawal. Contribution. OInvestments OLiability.
Your insured lives in an apartment but takes a temporary position in another city and must store some major furniture items in a storage warehouse until he/she returns. In the interim the unfurnished apartment is sublet to a friend. Subsequently, the warehouse is broken into and some of your insured's furniture is stolen. What would a Tenants Comprehensive policy pay? OA) The actual cash value or replacement cost of the property stolen less the policy deductible, subject to the 10% limitation on property temporarily removed. OB) Nothing. The loss is not covered. OC) The actual cash value or replacement cost of all the personal property stolen, less the policy deductible, subject to the policy limit. OD) That proportion of the loss which the value of the property at the warehouse bears to the total value of all of his/her personal property.
Henrietta wrote a check 1o Belk for $948 she knew her checking account had less than $36 and that she would'Y be making another deposit for weeks, Whichcrime. If any, has Henrietta commited in at least some jurlsdictions?
James sold his home for $379,000. If the real estate commission was 5.5%, how much commission did he have to pay? O $20,845 to the listing broker. O $10,422.50 to the listing broker and $10,422.50 to the selling broker. O $45.845 to the listing agent. O $20.845 to the buyer's broker.
15. The annual increase diene cash duander value of a life insurance policy: a. Is taxed when the individual dies and the heirs collect the insurance proceeds. b. Must be included in gross income each year under the original issue discount rules. c. Reduces the deduction for life insurance expense. d. Is not included in gross in ych y sach year because of the substantial restrictions on gaining access to the policy's value.
Melvin enters into a contract with Rhonda under which Rhonda agrees to build a customized model railroad for $2000 to be installed in Melvin's basement. The value of the model railroad to Melvin is $3000. Expecting the model railroad will be delivered, Melvin spends $400 remodeling his basement. Suppose at the time the contract was made, the cost of production was uncertain. 5(b): Over what range of production costs is it efficient for Rhonda to breach? Explain.
An owner, who bought an industrial building without financing on January 1st eight years ago for $8,000,000 is selling the property on December 31st of the current year for $8,900,000 and will incur a cost of sale of 3 percent of the sale price. The property allocation was 70 percent for improvements and 30 percent for land at the time of purchase. The owner's tax rates are 35 percent for ordinary income, 25 percent for cost recovery recapture, and 20 percent for capital gain from appreciation. What are the proceeds after tax for this sale? O $8,633,000 O $6,863,312 O $8,900,000 O $8,222,316
113 A balloon payment can be risky for a consumer if the property value falls or: A) the consumer falls to maintain the property. B) the consumer has had more than two x 30- day late payment. C) the consumer's financial condition declines. D) the consumer's credit score drops below the score used to approve the loan.
The contract for a home purchase typically includes: I. The negotiated price II. The completion of a home inspection III. The possession date IV. The approval of a mortgage by the bank I, III and IV All the responses OI, II and IV O I, II and III
! Required information [The following information applies to the questions displayed below.] Doyle Company issued $394,000 of 10-year, 7 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $79,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Required a. Prepare the journal entries for these events, and post them to T-accounts for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prepare the journal entries for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 Jan 01 Bonds payable Cash Debit Credit

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