All categories

2 years ago

If a buyer makes a 20% down payment and obtains a $95,000 mortgage, what is the sales price of the property?

1 answer:

7 0

If a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is <u>$118,750</u>.

<h3>What is a mortgage?</h3>

A mortgage is a financial arrangement that extends credit to a buyer of the property. It is simply a loan obtained for the purchase of a property like a home.

When a mortgage is granted, the buyer of the property is usually required to make a down payment, which is a part-payment or initial payment to reduce the sales price of the property.

Down payments are usually stated in percentages. Sometimes, they are stated in dollar amounts.

<h3>Data and Calculations:</h3>

Down payment = 20%

Sales price = 100%

Mortgage = $95,000 (100% - 20%, which is 80%)

Sales price = $118,750 ($95,000/80%)

Thus, if a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is <u>$118,750</u>.

Learn more about down payments and mortgages at brainly.com/question/1318711

#SPJ1

You might be interested in

At a price of $1.00, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.20, the coffee shop w

Julli [10]

Answer:

2.2

Explanation:

The formula for calculating price elasticity using the midpoint method is:

midpoint method = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}

midpoint method = {(150 - 100) / [(150 + 100) / 2]} / {(1.20 - 1) / [(1.20 + 1) / 2]}

midpoint method = [50 / (250 / 2)] / [0.20 / (2.20 / 2)] = (50 / 125) / (0.20 / 1.1)

midpoint method = 0.4 / 0.19 = 2.2

The advantage of using the midpoint method to calculate price elasticity is that we can calculate the price elasticity between two points, and it doesn't matter if the price increases or decreases.

If we calculate price elasticity using the single point formula:

price elasticity = % change in quantity supplied / % change in price = 50% / 20% = 2.5

7 0

3 years ago

Silky Inc., which sells custom silk ties designed by famous people, faces a demand curve of Q = 150 – 0.2P, where Q is measured

CaHeK987 [17]

Answer:

The production level that maximizes Silky's profit is $5000$ ties.

Explanation:

First of all, as we have $Q(P)=150-0.2P$ , we need to transcript it as price in function of the quantity so

$P(Q)=\frac{150-Q}{0.2}=750-5Q$

Then we need to find income function that is $I(Q)=Q*P(Q)=750Q-5Q^{2}$ . After derivate it $I'(Q)=750-10Q$ .

The optimum level is when we have $MC=I'(Q)$ , therefore,

$5Q=750-10Q$ , as we clear it for $Q$ we find that

$Q=\frac{750}{15}=50$ , finally as we have that $Q$ is measured in hundreds of ties, the production level that maximizes Silky's profit is $5000$ ties.

4 0

3 years ago

You are compiling Bertram Boat’s balance sheet. According to your calculations, Bertram has current assets of $85,000 and proper

iragen [17]

Answer:

$318,000

Explanation:

The computation of the total assets is shown below:

= Current assets + property, plant, and equipment - difference in amount

= $85,000 + $235,000 - $2,000

= $318,000

The difference of amount is

= Account receivable - collected amount

= $50,000 - $48,000

= $2,000

Since the current asset is already given so we considered the difference in amount to find out the total asset.

3 0

3 years ago

Are these competitive markets?

ruslelena [56]

I believe it’s A I hope this helps!

5 0

3 years ago

Each unit requires 2 pounds of direct materials, which cost $6 per pound. The company’s policy is to maintain direct materials i

ycow [4]

Answer: Budgeted Raw Material to be consumed in July.

Quantity Price per pound Total

10,200 $6 $61,200

Explanation:

As for the information provided, the material at month end in hand shall be:

20% of upcoming month's sale.

If in June at month end, the inventory in hand = 2,040 pounds of raw material.

Then, this represents 20% of total requirement of July.

Therefore, total requirement in July = $\frac{2,040}{0.20} = 10,200\ pounds$

This basically means:

Total inventory required =

Quantity Price per pound Total

10,200 $6 $61,200

5 0

2 years ago