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AECN 452 Spring Exam 1 answers
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AECN 452 Spring Exam 1 answers
, 2
#Q1
Lenders usually have to determine the credit score before disbursement of the requested
funds. Borrowers assets are approximated with the amount applied for if the assets can be able to
repay the loans as a closing cost. Credit history based on credit reports, credit scoring models
which identifies lenders with borrowers’ obligations to paying. Credit history explores the
payment to income ratio s, and the LTV. Good credit score is anything above 700 while bad
credit score is anything below 600.
#Q2
The two major difference between agricultural finance and corporate finance is the
business risks and the financial risks. Agricultural finance is more associated with capital
intensive industry dominated by farm real estate. This risk determines the liquification of the
agricultural products. Corporate finance focuses more on financing the agriculture which is the
business risks while agricultural finance focuses on utilization of the capital from the corporates
which is understandable as financial risks.
#Q3
Actual price = 5m
Down payments = 200k
No. of years = 10
Interest rate = 8% or 0.08
Annual payment =?
A). Loan 5M - 200k= 4.8m
Payments = 1.08 × 4.8m = 5.184m
Annual payments = 5.184m ÷ 10 years
= $518,000
B). Interest will be
= 0.08× 4.8m
= $384,000
C). 4.8m - 500k = 4.3m
AECN 452 Spring Exam 1 answers
ACADEMIC WRITING & RESEARCH SERVICES
Professional | Original | Reliable
Academic Writing • Research & Analysis • Thesis & Dissertation Support
SERVICES OFFERED
Academic Writing
Research & Data Analysis
Thesis Writing Assistance
Dissertation Support
Assignment Help
Literature Reviews
Case Studies
Research Proposals
Editing & Proofreading
Referencing & Citations (APA, MLA, Harvard, Chicago)
Proctored exams
Why choose us?
High-Quality Work
Plagiarism-Free Content
Timely Delivery
Confidential & Professional
Well-Researched Academic Solutions
Contacts
Gmail:
WhatsApp: https://wa.me/254721933068?text=
Empowering Academic Success Through Professional Writing & Research Excellence
AECN 452 Spring Exam 1 answers
, 2
#Q1
Lenders usually have to determine the credit score before disbursement of the requested
funds. Borrowers assets are approximated with the amount applied for if the assets can be able to
repay the loans as a closing cost. Credit history based on credit reports, credit scoring models
which identifies lenders with borrowers’ obligations to paying. Credit history explores the
payment to income ratio s, and the LTV. Good credit score is anything above 700 while bad
credit score is anything below 600.
#Q2
The two major difference between agricultural finance and corporate finance is the
business risks and the financial risks. Agricultural finance is more associated with capital
intensive industry dominated by farm real estate. This risk determines the liquification of the
agricultural products. Corporate finance focuses more on financing the agriculture which is the
business risks while agricultural finance focuses on utilization of the capital from the corporates
which is understandable as financial risks.
#Q3
Actual price = 5m
Down payments = 200k
No. of years = 10
Interest rate = 8% or 0.08
Annual payment =?
A). Loan 5M - 200k= 4.8m
Payments = 1.08 × 4.8m = 5.184m
Annual payments = 5.184m ÷ 10 years
= $518,000
B). Interest will be
= 0.08× 4.8m
= $384,000
C). 4.8m - 500k = 4.3m
