All categories

1 year ago

A buyer has a 30-year, $400,000 loan with a 7% interest rate. How much of the first month's mortgage payment is interest

Business

2 answers:

Scrat [10]1 year ago

8 0

The interest in the first month's mortgage payment is <u>$2,333.33</u>.

<h3>How is monthly mortgage interest determined?</h3>

The monthly mortgage interest can be determined using an online finance calculator that computes the monthly payment.

The payment schedule produced from the calculation shows the monthly payments classified according to interest and principal.

<h3>Data and Calculations:</h3>

N (# of periods) = 360 (30 x 12)

I/Y (Interest per year) = 7%

PV (Present Value) = $400,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $2,661.21

Sum of all periodic payments $958,035.59

Total Interest $558,035.59

<h3>Schedule</h3>

Period PV PMT Interest FV

1 $400,000.00 $-2,661.21 $2,333.33 $-399,672.12

2 $399,672.12 $-2,661.21 $2,331.42 $-399,342.33

3 $399,342.33 $-2,661.21 $2,329.50 $-399,010.62

Thus, the interest in the first month's mortgage payment is <u>$2,333.33</u>.

Learn more about mortgage payments at brainly.com/question/22846480

#SPJ12

Juli2301 [7.4K]1 year ago

4 0

The portion of the first month's mortgage payment meant for interest is $2,333.33

What is a mortgage?

Mortgage is a loan taken to acquire property which requires periodic interest payment such as monthly , semiannually or even annually.

First month interest=loan amount*annual interest rate/12

First month interest=$400,000*7%/12

First month interest=$2,333.33

Find further explanation on mortgage interest below:

brainly.com/question/1115815

#SPJ1

You might be interested in

EFG Transportation Company uses the straight-line method to depreciate its delivery truck. Which of the following reflects how r

Stells [14]

Answer:

C.− NA −NA + −NA

Explanation:

As we know that

The depreciation expense is a non cash expense which is to be charged every year and shown in the income statement

Plus it also reduced the value of the asset and stockholder equity as a retained earning but at the same time it increases the expenses due to which the net income reduced and it does not have any impact on the cash flow statements

Hence, the appropriate option is c.

4 0

2 years ago

Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optim

Amiraneli [1.4K]

Answer:

c. $2.0 million for Lopes and by $2.5 million for HomeMax.

Explanation:

For the problem above, the two organizations agreed to work on a particular project because they believed that they will benefit from the outcome of the project. Based on the available information provided in the question, the profit that Lopes will make yearly will increase by $2.0 million while that of HomeMax will increase by $2.5 million.

3 0

2 years ago

For the purpose of process analysis, which of the following measures would be considered an appropriate flow unit for analyzing

ira [324]

Answer:

a. Sales Dollars

d. number of customers served per day

Explanation:

In process analysis, flow unit can be described as the fundamental unit of analysis in any scenario whatsoever. This can include the customers, phone call, money, goods produced etc. Furthermore, the flow rate is simply the number of flow units. From the example, Sales Dollars and the number of customers served per day are appropriate flow units, while gasoline pumps and employees working are all resources and not flow units.

4 0

3 years ago

Read 2 more answers

Jane is a very intelligent graduate of FIN 3601. As such, she knows she should will start contributing into her company's retire

labwork [276]

Answer:

The amount that Jane will have in her retirement account 30 years from now is $943,650.37.

Explanation:

Jane’s monthly savings = $250

Amount added monthly by Jane’s firm = Jane’s monthly savings * Amount added by Jane’s firm for every dollar = $250 * $0.50 = $125

Total monthly savings to Jane’s 401(k) = Jane’s monthly savings + Amount added monthly by Jane’s firm = $250 + 125 = $375

Since Jane decides to allocate $250 at the end of each month into her 401(k), this implies the relevant formula to use to calculate the amount Jane will have in her retirement account 30 years from now is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the amount that Jane will have in her retirement account 30 years from now = ?

M = Total monthly savings to Jane’s 401(k) = $375

r = Average monthly interest rate = Average annual interest rate / 12 = 10.50% / 12 = 0.1050 / 12 = 0.00875

n = number of months = number of years * number of months in a year = 30 * 12 = 360

Substituting the values into equation (1), we have:

FV = $375 * (((1 +0.00875r)^360 - 1) / 0.00875) = $375 * 2,516.40 = $943,650.37

Therefore, the amount that Jane will have in her retirement account 30 years from now is $943,650.37.

5 0

2 years ago

Debra's manager publicly reprimanded her in the department meeting. during the manager's 10 minute rant, debra sat quietly. afte

muminat

Answer: C) a tend-and-befriend strategy.

Explanation:

The Tend and Befriend strategy is a relatively new theory that tries to explain another way humans respond to stress.

Recent studies have shown that women are the main proponents of this theory because while men would rather prefer a 'Fight or Flight' approach, women can reduce stress faster when going by this theory as they are more likely to nurture and tend to their offspring as well as rely on their close ones as a support system who they can lean on in hard times.

Debra was stressed by her job and went to talk to her friend about it. It could be said therefore that Debra's friend is her support system. Also notice how Debra is now laughing which shows a reduction in stress has talen place thereby confirm this theory.

8 0

2 years ago