40 POINTS On a $200,000.00 purchase price with a 20% downpayment answer the following:

The mortgage loan is for $160,000

What is the mortgage payment on a 15-year loan at 2.5%?

What is the mortgage payment on 30-year loan at 3.25%?

What is an adjustable-rate mortgage, (ARM)?

If interest rates look to be rising is an ARM a good idea? Why or why not?

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

Stella company sells only two products, product a and product b. product a product b total selling price $50 $30 variable cost per unit $20 $10 total fixed costs $2,110,000 stella sells two units of product a for each unit it sells of product b. stella faces a tax rate of 40%. stella desires a net afterminustax income of $54,000. the breakeven point in units would be

Which of the following has the largest impact on opportunity cost