Overseas Bank Is Pooling 50 Similar and Fully Amortized Mortgages

question 111

Multiple Choice

Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security.The face value of each mortgage is $100,000 paying 180 monthly interest and principal payments at a fixed rate of 9 percent per annum.

What is the monthly payment on the mortgage pass-through?

• A)$37,500.
• B)$45,231.
• C)$45,309.
• D)$50,713.

Understand the significance of quality costs and their impact on business operations.

Understand the principles and objectives of responsibility accounting.

Comprehend the concept and calculation of residual income.

Learn the use and implications of return on investment (ROI) for managerial performance evaluation.

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Definitions:

High Achievers

Individuals who consistently attain high levels of performance and excel in their chosen fields or activities.

Self-Motivated

Driven by one's own interest, desire, or willingness to achieve something without needing external pressure or incentive.

Motivator-Hygiene Model

A theory by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from different factors: motivators lead to satisfaction while hygiene factors prevent dissatisfaction.

Hygiene Factors

Factors related to job dissatisfaction, such as salary, working conditions, and company policies, according to Herzberg's motivation-hygiene theory.