dora filed for chapter 13 bankruptcy in 2011. even if she planned to take the maximum time allowed under chapter 13 to repay her
2 answers:
Answer:
Dora must have planned to repay her debts no later than year 2016.
Step-by-step explanation:
When a person enters into a Chapter 13 bankruptcy case, he or she can reorganize his/her debts or unpaid mortgage or any other loan payment. This can be paid off between three to five years with five years being the maximum allotted time frame.
So, if Dora filed for chapter 13 bankruptcy in 2011, she must have planned to repay her debts no later than
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Answer:
100% of the 2nd monthly payment go toward the repayment of principal.
Step-by-step explanation:
The loan taken is the Principal which is mentioned as $72,500 with interest at a nominal rate of 20%. Firstly, it is important to understand that nominal rate means <em>non-compounding </em>rate. Simply put will be a "<em>one-time charged" </em>rate on the loan. Since this is given as 20% of the Principal. It is calculated thus: ×
= $14,500. So the interest on the loan is $14,500. Added to the Principal the total amount to be paid back by the company becomes: $72,500 + $14,500 = $87,000. To pay back this amount at equal end-of-month installments in 1 year (12 months), we divide the total amount by 12. i.e
= $7250. This means, the monthly payment will be $7,250. Since the monthly payment pays only 10% of the initial principal $72,500. By the second month only 20% of the Principal would have been paid. So all of the monthly payment will go towards repaying the principal