It will take 3.30 years to accumulate $28,500 on this account with an interest rate of 4% compounded semi annually
Calculating the problem:
It will take 3.3 years to accumulate $28,500 on this account
According to the compound amount formula expressed as:
A = P ( 1 + [tex]\frac{r}{n }[/tex])ⁿ
where,
P is the principal = $25,000
A is the amount = $28,500
r is the rate in decimal = 4% = 0.04
n = 2 (semi annually)
28,500 = 25000 ( 1+ [tex]\frac{0.04}{2}[/tex]) ²ⁿ
1.14 = ( 1+ 0.02) ²ⁿ
log 1.14 = 2tln 1.02
2t = [tex]\frac{ln 1.14}{ ln 1.02}[/tex]
2t = 6.617
t = 3.30 years
Hence it will take 3.3 years to accumulate $28,500 on this account
How does compound interest work?
When you earn interest on both the money you've saved and the interest you earn, this is called compound interest.
For instance, if you put $1,000 into a savings account that earns 1% interest annually, you would get back $10 in interest after a year. In Year Two, you would earn 1% on $1,010—the principal plus interest, or $10.10 in annual interest payouts—thanks to compound interest.
Formula for Monthly Compound Interest. Twelve times per year, interest compounded monthly is calculated.
Quarterly Compounded Formula. Four times per year, interest compounded quarterly is calculated.Formula for Daily Compound Interest.Formula for Annual Compound Interest.The annual interest rate multiplied by the number of compound periods minus one is used to calculate compound interest. The initial principal amount is multiplied by one.Question incomplete:
If an amount of $25,000 is deposited into a saving account at an interest rate 4%, compounded semi-annually, how long will it take to accumulate on this account $28,500?
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Sarah was frustrated with her supervisor, and was not motivated to do her job. She felt that her coworkers were treated better than she was, even though she worked long hours and met her performance goals. Which of the motivation theories below explains Sarah's lack of motivation?
Sarah was frustrated with her supervisor, and was not motivated to do her job. Equity theory explains Sarah's lack of motivation.
What is Equity theory?
According to the proposition of provocation known as equity, workers feeling of fairness plays a significant part in what motivates them to do their best at work. Workers keep track of the inputs and labors of their work in a internal tally, which they use to assess how their inputs and labors compare to those of others. The input, outgrowth, and comparison situations are the three main factors of equity proposition. The quantum of work a person invests into a relationship is appertained to as their input. The benefits that a person derives from a connection are appertained to as the outgrowth.
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Assume you purchase a bond with a quoted price of 98.6208 on June 30. The bond pays interest on February 1 and August 1. The invoice price you pay for this purchase will equal the
Multiple Choice
dirty price.
asked price.
clean price.
bid price.
par value.
A dirty cost is a risk financing quote that includes accumulated interest depending on the discount. Bond price quotes during coupon payment periods represent the accumulated sales up to the date of the quote.
The dirty cost is the cost of a debt security minus any accumulated interest payments. The clean price is often the price quoted on financial news websites. This price does not include any interest accumulated between the bond's regular coupon installments. The filthy price is the inverse of the clean price. When quoting bond prices, they might be either the clean price or the filthy price. The filthy refers to the price of a bond that includes accumulated interest depending on the coupon rate. If a bond quotes between coupon payment dates, the accumulated interest up to that point is included in the price. In brief, a dirty bond price contains accumulated interest, but a clean bond price does not.
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according to the u.s. federal research misconduct policy, falsification involves: taking credit for the ideas or statements of others. manipulating research materials, equipment, or processes, or changing or omitting data. failing to report a conflict of interest. knowingly reporting unsubstantiated allegations of research misconduct to the federal government. question 4 which of the following is true regarding research misconduct? the u.s. government is required to reveal publicly the identity of any person who commits misconduct. a central federal agency handles all cases of research misconduct. federal funding agencies typically rely on an institution to make the initial response to an allegation of research misconduct. funding agencies normally perform their own misconduct inquiry before the institution becomes involved.
Federal funding agencies typically rely on an institution to make the initial response to an allegation of research misconduct.
Public financing is money obtained from the government, usually via taxes, and utilized to benefit the general public through products and services. The money are collected and disbursed at several levels, including the federal, state, and municipal governments. While taxes are the most common source of revenue, penalties and fees can also be used. Health initiatives, community services, restoration projects, public service programs, and even environmental activities are aided by public money. These programs assist the people in the community where the money are spent. As a result, Chase discovers that when citizens pay taxes, the government utilizes that money to support and develop communities through programs and services.
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in monopolistic competition: each firm produces an identical product to every other firm in the industry.
a. true
b. false
Market power derives from product differentiation since every business creates a distinctive product. Every good has several equivalent alternatives;
do identical items result from monopolistic competition?Monopolistic competition develops when a number of companies offer similar but different goods. Monopolistic competitors differentiate their products by setting different prices and using different marketing strategies.
What a monopolistic competitive corporation is explainedMonopolistic competition is a type of imperfect competition in which numerous producers engage in rivalry while selling commodities that can be distinguished from one another (for instance, by branding or quality) and are thus not exact substitutes.
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Match the cost flow assumption on the left with its definition on the right.
Instructions
FIFO
FIFO drop zone empty.
LIFO
LIFO drop zone empty.
Weighted Average
Weighted Average drop zone empty.
Specific Identification
Specific Identification drop zone empty.
Assumes costs flow in the reverse order incurred
Assumes costs flow can be specifically matched with the physical flow of items
Assumes costs flow in the order incurred
Assumes costs flow at an average of the costs available
The process of deducting costs from a company's inventory and reporting them as the cost of goods sold is referred to as a "cost flow assumption." In the US, FIFO, LIFO, and average are among the cost flow hypotheses.
What are cost flow assumptions?It is unnecessary to make assumptions if explicit identification is employed.Because the flow of expenses out of inventory does not have to correspond to how the goods were physically taken out of inventory, FIFO, LIFO, and average are assumptions.The inventory has goods physically removed.Let's use an example where a business has four of the same item in stock. The prices paid for the units were $40, $41, $43, and $44, in that order, with increasing costs. According to the cost flow assumption, the price deducted from inventory and reported as the cost of goods sold (COGS) will change if the corporation physically removes and sells the oldest unit (the unit with a cost of $40):According to the FIFO cost flow hypothesis, the $40 oldest cost is deducted from inventory and charged to COGS.According to the LIFO cost flow assumption, the $44 most recent cost is deducted from inventory and charged to COGS.According to the average cost flow assumption, $42 is taken off of inventory and charged to COGS on average.To Learn more About cost flow assumption Refer To:
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the HUD fair housing equal opportunity poster is required to be posted in a prominent position In any business that is related to housing
TrueFalse
The HUD fair housing equal opportunity poster is required to be posted in a prominent position In any business that is related to housing---True
What does the acronym HUD stand for?The government agency tasked with assisting individuals and families obtain safe and affordable housing is the United States Department of Housing and Urban Development. The abbreviation for this organization is: HUD.
How significant is housing policy?Housing policy can also assist families with low or moderate incomes in acquiring wealth and achieving stability. According to recent studies, focusing solely on income disparities fails to fully reflect the socioeconomic disparities between White families and families of racial and ethnic minorities.
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David's employer wants to increase his compensation as a reward for the good work he has done. David wants to receive extra compensation that will be taxed at capital gains rates. Which one of the following is appropriate to meet the needs of both David and his employer?
A)
A restricted stock plan
B)
A nonqualified stock option
C)
An incentive stock option
D)
A performance share plan
Incentive stock option is appropriate to meet the needs of both David and his employer
An incentive stock option (ISO) is a corporate perk that enables employees to purchase company shares at a discount with the potential for tax benefits on the gain. The tax rate applied to profits from eligible ISOs is typically the capital gains rate rather than the higher rate for regular income. Some businesses provide incentive or compulsory stock options to employees as a means of enticing them to work for them long-term and to participate to their company's expansion and eventual increase in stock value.
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when choosing a target market, niche refers to . A) responses possible B) customers possible C) customers demographics D) demographics communication E) communication competition
A target market niche refers to a specific segment of customers within a larger market who have unique needs or characteristics.
It is a subset of a target market that is identifiable by specific demographics, interests, behaviors, or other characteristics.get the informed, written consent of all parties prior to becoming a dual agent.In this scenario, the broker is currently the single agent of the seller and the prospective buyer wants the broker to represent him too. In this situation, the broker should not proceed to represent the buyer without the informed, written consent of all parties involved. This is because in this case, the broker will be acting as a dual agent, representing both the seller and the buyer in a transaction. As a dual agent, the broker has a fiduciary duty to both parties and must disclose this in writing and get their informed, written consent before proceeding with the representation
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which of the following is true about the characteristics of the long-run aggregate supply curve and the production possibilities curve? (2 points)
1. The long-run aggregate supply curve slopes upward as output increases 2. the production possibilities curve is a straight line.
What is curve ?
A curve is a line or collection of lines that bend, twist, and turn in a two-dimensional plane. Curves are used extensively in mathematics, science, and engineering. They are used to describe the shape of objects, define functions, and study the properties of certain equations. Curves can also be used to represent a range of motion, such as the path of a falling object or the trajectory of a projectile.
curve is a line or surface that deviates from being straight or flat. Curves are used to create a variety of shapes, including circles, ovals, and spirals. In mathematics, curves are often studied using calculus, a branch of mathematics that deals with the properties of curves and surfaces.
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which of the following are sources of cash? (check all that apply.) multiple select question. purchasing an asset a decrease in notes payable an increase in notes payable a decrease in accounts receivable
Sources of cash include a decrease in accounts receivable as well as an increase in notes payable.
Accounts receivable, inventory, and investments are the most typical sources of cash for a firm. Other cash sources include bank or other lender loans, lines of credit, and client advances. In a corporate finance transaction, a Sources and Uses of Cash schedule summarizes where money will come from (the "Sources") and what capital will be spent on (the "Uses"). When calculating total amounts, the sources and uses accounts should be equal. When developing a model for scenarios such as recapitalization, restructuring, and mergers and acquisitions, the sources and uses schedule becomes extremely significant and beneficial. As a result, it is frequently employed in investment banking. For most firms, cash from financing comprises of loan proceeds and credit line drawdowns.
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Which of the following timing differences result because of transactions that show up on the books but not on the bank statement?
outstanding checks
deposits in transit
outstanding checks and deposits in transit timing differences result because of transactions that show up on the books but not on the bank statement.
An agreement that has been fulfilled between a buyer and a seller to trade products, services, or financial assets in exchange for cash is referred to as a transaction. Furthermore, corporate accounting frequently makes use of the phrase. This simple definition may get complicated in corporate bookkeeping. Whether a business utilises accrual accounting or cash accounting will determine when a transaction is recorded. Because firms could strike a contract today that won't be resolved until later, transactions might be more complicated in the accounting world. It's also possible that they have known but unpaid earnings or costs. The procedure may get more difficult if third parties are involved.
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Suppose society faces a broad tradeoff between allocating resources to the production of investment goods (computers) and consumption goods (cars) before the improvement in technology described above.Which of the following events would be most likely to lead to the improvement in technology you just illustrated?A) Increasing production of investment and consumption goodsB) Decreasing production of investment and consumption goodsC) Increasing production of investment goods and decreasing production of consumption goodsD) Decreasing production of investment goods and increasing production of consumption goods
Answer:
C. Increasing production of investment goods and decreasing production of consumption goods
Explanation:
When technology improves, it increases the overall production capacity of the economy. Therefore, the economy can produce more of all the goods.
Lean practices Include those which are designed to ellminate waste while still satistying the customer. Examples of lean practices include all of the following: Check all that apply. continuous improvement service focus just-in-time manufacturing traditional manufacturing total quality management
Continuous improvement, service focus, just-in-time manufacturing, total quality management.
What is manufacturing ?
Manufacturing is the process of making products from raw materials, either by machines or by manual labor. It is a vital part of the production process, which involves the transformation of raw materials into finished goods for sale.
During manufacturing, components are put together to create a finished product, such as cars, furniture, clothing, or electronics. The process can involve multiple steps, such as the cutting and shaping of materials, the assembling of components, and the testing and inspection of the final product. Manufacturing is a major part of the global economy, generating jobs and providing an important source of revenue for many countries.
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an operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as objectives). although there are many specific types of operational plans, they can be broadly characterized as either single-use plans or standing plans. a procedure to shut down the computer network so the operating system can be replaced is a , whereas a procedure to close the store at the end of each evening is a
Although there are many specific types of operational plans, they can be broadly characterized as either single-use plans or standing plans. a program plan is an example of a single use plan, while a policy is an example of a standing plan.
Policy is a determined set of principles designed to influence actions and produce sensible results. A policy is a declaration of intent that is put into action as a method or practise. A governing board inside an organisation often adopts policies.
Policies employed in subjective decision-making typically aid senior management with judgements that must be made on the relative merits of a variety of elements, and are thus sometimes difficult to objectively assess. Resource allocations frequently reflect policy decisions.
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accrual methods for tax tend to overstate and understate relative to accrual methods for financial accounting
Accrual methods for tax tend to overstate and understate relative to accrual methods for financial accounting.
What exactly is the tax accrual method?With the accrual system, regardless of when payment is received, you typically record income in the tax year you earn it. Regardless of when payment is received, you deduct expenses in the tax year you incur them.
How do cash and accrual tax accounting differ from one another?When cash is actually received or paid, firms can only record income and costs on a cash basis. Instead of recording transactions as they happen, accrual accounting records income and costs as they happen (when an invoice is sent or a bill is received).
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when adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515.TrueFalse
when adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515 is true.
The operating costs incurred by a business in order to produce revenue are referred to as expenses. It may be summed up by saying that the price one must pay to acquire something. "It costs money to make money," as the adage goes. Spending money on expenses helps you run your business profitably every day. A liability is created on the balance sheet when a cost isn't immediately paid off. Because they are often consumed right away by the firm, costs typically do not retain their value for more than a year. Financial experts don't depreciate them over time; instead, they immediately subtract them. In the income, or profit and loss, statement, accountants track spending.
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If environmental hazards are discovered and the landowner had no previous knowledge of their existence,A) the landowner will never be held responsible.B) only the real estate professional may be held responsible.C) the landowner might still be held responsible.D) only a landowner with prior knowledge may be held responsible.
Environmental hazards—like water and air pollution, excessive weather, or chemical exposures—can have an effect on human health in a variety of ways, from contributing to persistent diseases like cancer or to acute illnesses like warmth exhaustion.
ENVIRONMENTAL HEALTH IS COMPLEX.
What is environmental hazard and its types?Environmental risks can additionally be categorized into three interrelated classes (biological, chemical, and physical) based totally on the houses of their causes. These classes are no longer jointly special with traditional versus cutting-edge hazards.
For example, indoor air air pollution is each a typical and chemical hazard.
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https://brainly.com/question/15174469#SPJ4The Pennsylvania legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by O no one. the federal government only. o the state of Pennsylvania only. o the United States Supreme Court only.
Fair treatment under the Fourteenth Amendment can be separated into two classifications: procedural fair treatment and considerable fair treatment.
The Equivalent Assurance Provision. The High Court's methodology during the period from the 1950s through the 1970s in concluding cases on established grounds is portrayed as legal activism.
Congress can designate authority explicitly and with point-by-point rules. All congress can't designate its established power and obligations.
Besides periodic public dissatisfaction, there is no punishment for disregarding the Constitution by and large or the Principal Alteration specifically.
Fair treatment is intended to guarantee reasonableness in the law enforcement framework. Without fair treatment, people could be confined and denied their opportunities and existence without worthwhile motivation. In the event that a criminal respondent is denied their social liberties, they can challenge the state on those grounds.
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Which of the following are factors managers must consider when setting normal selling prices for products with relatively short life cycles?
- competition
- customer demand
- differentiation
- target profit
Managers consider all the given factors in setting normal selling prices.
Normal product pricing must be set at a level that will pay for all expenses and give owners a respectable return. There are various factors that managers consider for setting normal selling prices. These are -
Target Profit: Managers always consider an efficient return. Owners aim for an ROI of 12%, for instance, as their return on investment.
Customer Demand: What prices will consumers be willing to pay, and how will they react to price increases?
Competition: Some product markets are extremely competitive, making it difficult for businesses to set their own prices. As a result, they are forced to offer their goods at whatever the market will bear.
Differentiation: Businesses with distinctive products or well-known brands might be price-setters, having more control over establishing pricing.
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suppose you withdraw 500 from your checking account deposit and bury it in a jar in your back yard. if the required reserve ratio is 10%, checking account deposits in the banking system as a whole could drop up to a maximum of
A maximum balance of $0, $50, or 10% of required reserves might apply to checking account balances across the entire banking system.
What does the word "balancing" mean?
An even distribution of weight, quantity, etc.; equilibrium or equipoise; a counterpoise used to create balance. mental or emotional stability; a tendency toward cool behaviour, judgement, etc. a state of equilibrium in the body: He lost his footing and fell down the stairs. For example, balance is required for everyday tasks like walking, utilising the stairs, and simply getting up from a chair. balances, singular; singular; plural. There are multiple balances; balances is the plural form.
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according to the issues related to purchase and postpurchase activities model presented in the text, the includes the shopping experience, point-of-purchase stimuli, and sales interactions. question 9 options: cognitive process purchase environment antecedent state post-purchase process
Purchase environment and behavioral choices are constantly interacting when it comes to consumer decision-making. Buyers reactions to a firms marketing strategy has a great impact on the firms success.
Consumer decision-making involves both pre- and post-purchase information and consequences. Behavior Prior to Purchase: When a consumer becomes aware of his demands, he starts looking for information. In order to make the best choice, he follows suit. He compiles information on the following: Product Variations and Brands. Alternative Products with High Quality. Depending on his or her age, gender, level of education, as well as the cost, danger, and acceptability of the product, the consumer can learn information about it.
Post-Purchase Conduct: Post-buy behavior includes all the actions and events that occur after a purchase. Customers frequently suffer post-buy dissonance after making a purchase. They occasionally regret the choices they've made. It mostly happens because there are so many options accessible, and those options often perform well or are attractive.
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Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life. T/F?
The given statement "Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life" is false because spreads the value of the fixed asset over the period.
The asset is the things include property and coins etc, which is used to sell or buy for the money. According to the accounting, the asset is the type of source that a business or a company owns it and control over it.
The straight-line depreciation is the process in the accounting which is used to spreads the value of the fixed asset over the period an business or organization expects to benefit from its use or sell.
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Edison Consulting received a $430 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a:
Debit to Utilities Expense for $430.
Credit to Accounts Payable for $430.
Debit to Cash for $430.
Credit to Utilities Expense for $430.
Debit to Accounts Payable for $430.
Edison Consulting received a $430 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a Credit to Utilities Expense for $430.
Option D is correct.
What are journal entries?A business transaction is recorded in your books as a journal entry. For every transaction, double-entry bookkeeping requires at least two journal entries. A bookkeeper keeps track of all the changes that a transaction can bring about in a business with journal entries.
What is the rule for writing in a journal?Each journal entry in double-entry accounting must have at least two accounts: only one credit and one debit An accountant can include any number of additional accounts in a journal entry beyond the initial two.
Why do people use journals?A business keeps a detailed record of all of its transactions in a journal. The data that is kept in a journal is used to reconcile accounts and transfer information to other accounting records.
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The Bay City Planning Department, the Coastal County Zoning Commission, the California Environmental Quality Agency, and the U.S. Bureau of Land Management issue regulations. These rules constitute
Question 2 options:
a) administrative law.
b) case law.
c) constitutional law.
d) statutory law.
Administrative law refers to the body of law that governs the actions and decision-making of administrative agencies, such as the Bay City Planning Department, the Coastal County Zoning Commission, the California Environmental Quality Agency, and the U.S. Bureau of Land Management. Option A is the right response in this case.
These agencies have the authority to create and enforce regulations, which are considered a form of administrative law. The regulations created by these agencies are intended to implement and interpret laws passed by the legislative branch of government.
Administrative law can also include the rules, procedures, and decisions made by administrative tribunals or other bodies established to hear and decide disputes arising from the application of regulations.
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Karl's house has assessed for $200,000. The millage rate for the school district is 9 mills; the millage rate for the city is 8.5 mills; and the millage rate for the county is 7.4 mills. How much does Karl, who is blind, owe for city and county property taxes? Round to the nearest dollar
Karl, who is blind, owe for city and county property taxes is $2,377.
Property tax: What is it?A tax known as a property tax is one that is owed on real estate that is owned by a person, a business, or another type of legal body. Real estate ad-valorem taxes, which can be regarded as regressive taxes, are the most typical type of property tax. The owner of the property is responsible for paying it when a local authority in the area where the property is located calculates it.
An ad valorem tax based on a property's value is a property tax or millage rate. The governing body of the area where the property is located is in charge of imposing the tax. Depending on the context, this could refer to a municipality, a county, a federated state, or the federal government.
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Companies across the globe can now realize opportunities to grow by exporting their products or services to different countries. For example, the popular clothing chain H&M, known as a fast fashion retailer, is based in Sweden, but now has locations in many cities across the United States. These stores offer the same selection of items found in other H&M store locations across the globe. H&M is utilizing Ansoff's strategic alternative of _______.
a. diversification
b. market development
c. product development
d. market penetration
Option a is correct. These stores offer the same range of items as other H&M stores worldwide. H&M embraces Ansoff's strategic alternative of diversification.
A diversified portfolio mixes different types of assets and investment vehicles to limit exposure to individual assets or risks.
The rationale behind this technique is that portfolios made up of different types of assets will, on average, generate higher long-term returns and reduce the risk of a single investment or security. Diversification is a strategy that combines different investments within a portfolio to reduce portfolio risk.
Diversification is most commonly done by investing in different asset classes such as stocks, bonds, real estate, and cryptocurrencies.
Diversification can also be achieved by purchasing investments in different countries, industries, company sizes, or maturities for income-generating investments.
Diversification is most commonly measured by analyzing the correlation coefficients of asset pairs.
Investors can either self-diversify by investing in their chosen investments or hold diversified funds that self-diversify.
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Francine sells her handmade purses directly to customers at craft fairs and on her website. This is a form of ______.
direct distribution
Francine offers her handcrafted handbags directly to clients at craft fairs and on her website. This is a type of direct selling.
Direct selling is an approach to business in which a party buys products from a parent company and sells them directly to customers." Direct selling is a wide term that refers to a variety of business models centered on person-to-person selling outside of a retail establishment, such as social media sites or the salesperson's or prospective customer's home." Direct selling is the practice of selling things to customers directly rather than via a retailer. Instead, sales take place at home, work, online, or in other non-store settings. Direct selling removes various product distribution middlemen, such as the regional distribution center and wholesaler. Instead, items are transferred from the producer to a direct sales organization, then to a distributor or representative, and lastly to the customer.
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a weakening of the value of the us dollar against other major currencies makes american goods more attractive to foreign consumers.
The statement is false because Americans cannot offer cheaper prices to consumers in other nations.
A declining dollar shows that foreign currencies are buying more dollars, which makes American exports appear more affordable. This suggests that rising U.S. exports are a result of a weaker currency. For a foreign exporter, the outcome is exactly the opposite. In the hypothetical situation, if the value of the dollar declines, American goods will appear to be more affordable and alluring to overseas consumers because, if they choose to purchase American goods, they will do so at lower costs than they would have otherwise paid.
American goods will become more appealing to international consumers, who will purchase more American items, if the value of the dollar declines. Devaluation might boost inflation and economic growth in the short term, but over the long term, it would raise the cost of imports and might lower real GDP.
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why did the confederate attempts to raise revenue by tariffs not work? group of answer choices
lincolns administration called for emancipation before anyone seceded.
Why did the Confederate plan fall short?
Slavery, the exact institution that led to secession, was the most persuasive "internal" reason for the South's defeat. Slaves escaped and joined the Union army, depriving the South of labor and giving the North an additional 100,000 men.
What economic issues were the Confederates dealing with?
Confederate expansion and development were hindered by the twin drawbacks of a smaller industrial economy and the fact that so much of the war was waged in the South.
Because of Union naval blockades, Southern farmers (particularly cotton growers) found it difficult to export their products.
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mortgage loans from mortgage companies, savings institutions, credit unions, or commercial banks purchased by fannie mae are generally packaged into
Before offering these mortgage-backed securities (MBS) to investors, Fannie Mae bundles the loans in question. An MBS could be made up of 1,000 or more loans with comparable features.
What is the advantage of a Fannie Mae mortgage?Low down payment alternatives are available and Fannie and Freddie loans have reasonable interest rates. The main advantage of Fannie and Freddie loans, though, is that most lenders want to make them. Lenders have a ready market where they may sell the loans, make a profit, and get more money to make more loans.Here is a breakdown of the acronyms: The abbreviation FNMA is where the Federal National Mortgage Association, also known as Fannie Mae, was born. FN is represented by Fannie, and MA by Mae. From the abbreviation GNMA, the Government National Mortgage Association, or Ginnie Mae, was born.At Fannie Mae, we buy and guarantee mortgage loans produced by lenders, issue debt instruments and mortgage-backed securities that draw in international investors for funding, and as a result, we provide liquidity to the single-family market.To learn more about mortgage refer to:
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