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denis-greek [22]
1 year ago
13

a buyer has made an earnest money deposit of $6,500 on a house selling for $112,500. a lender has agreed to lend 85 percent of t

he purchase price at 6 percent interest for 30 years. if the buyer's closing costs amount to $4,375, how much additional cash must the buyer bring to closing?
Business
1 answer:
Sedbober [7]1 year ago
6 0

The  additional cash must the buyer bring to closing is $14,750

What is the total cash required by the buyer at closing?

The total cash required by the buyer at closing is the buyer's closing costs plus down payment which is 15% of the house selling price.

The down payment required is 15% because the lender has agreed to lend 85% of the asset value as the mortgage, hence, down payment is computed thus:

down payment=15%*$112,500

down payment=$16,875

total cash needed=$16,875+$4,375

total  cash needed=$21,250

additional cash required=total cash needed-cash saved

additional cash required=$21,250-$6,500

additional cash required=$14,750

Find out more about closing costs on:brainly.com/question/18687555

#SPJ1

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Suppose that the bond market and the money market both start out in equilibrium, then the Federal Reserve increases the money su
Trava [24]

Answer:

b) surplus; shortage; up; fall

Explanation:

If the bond market and money market start out at equillibrum, and money supply is increased there will be an excess (surplus) of money over bonds.

That is more money to buy less bonds. The relative scarcity of bonds will result in a shortage (bond supply cannot meet demand).

As a result of the shortage price of bonds will increase because more people are looking for the scarce bonds.

Price of bonds has an inverse relationship with interest. As price increases interest rates will fall.

For example consider a zero coupon bond of $1,000, being sold for low price of $850. On maturity it will yield gain of $150.

If the price rises to $950 the yield will only be $50.

So as price increases and interest (yield) decreases, it will no more be attractive to investors and demand will reduce to meet the available supply of bonds.

4 0
3 years ago
Benefit corporations differ from traditional corporations in three main ways. The main purpose is to benefit the ___ , so direct
larisa86 [58]

The correct answers are, Public, Environment, Derivative Suit, Benefit Report.

Explanation:

Any corporation which is established to benefit people, society and the environment, is called as the Benefit corporation.

The main purpose is to benefit the Public, so the directors must consider the impacts of their decisions on society and the Environment. Shareholders have an additional right to private action called a Derivative Suit, that allow them to sue the corporation for failure to pursue the purpose. Finally, benefit corporations must issue an annual Benefit Report on its performance and include a third party standard of assessment.

Learn more about Benefit Corporations at:

brainly.com/question/13648699

#LearnWithBrainly

3 0
2 years ago
A brewery produced regular beer and a low carb "light beer". Steady Customers of the brewery buy 10 units of regular beer and 15
Svet_ta [14]

Answer:

                                                Regular     Low Carb      Total

a) Units to be produced               20              22             42

(to minimize total production cost)

b) Total production costs    $704,000   $1,150,000   $1,854,000

Explanation:

a) Data and Calculations:

                                                Regular     Low Carb

Monthly customers demand         10              15

Ratio of customers demand        40%           60%

Cost per unit                           $32,000      $50,000

Revenue per unit                    120,000      300,000

Contribution per unit            $88,000    $250,000

Total required revenue = $9,000,000

With 20 additional units of beer, total units produced = 45 (25 + 20)

To minimize production costs and generate a total revenue of $9,000,000, more of the units that cost less should be produced.  Units should be produced according to the following ratio:

                                                   Regular       Low Carb       Total

New Production and Sales units  20                   22             42

                                         

Total production cost =       $640,000         $1,100,000         $1,740,000

                                       ($32,000 * 20)       ($50,000 * 22)

Total revenue =               $2,400,000        $6,600,000     $9,000,000

                                      ($120,000 * 20)      ($300,000 * 22)

To achieve a minimum revenue of $9,500,000,

New production units                  22                   23                  45

Total production cost =     $704,000         $1,150,000        $1,854,000

Total revenue =                2,640,000         6,900,000         9,540,000

3 0
3 years ago
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics
jeka57 [31]

Answer:

The correct answers are:

A) The effects of the Internet on the pricing of used cars.  (Microeconomics)

B) The effect of government regulation on a monopolist's production decisions . (Microeconomics)

C) The effects of government tax policy on long-term economic growth. (Macroeconomics)

Explanation:

The field of economics is usually broken down into two broad categories: Microeconomics and Macroeconomics. The goal of all economics is to analyze the production and consumption of finite resources like oil, wheat, capital or even labor. Microeconomics observes these issues from an individual or business perspective. Macroeconomics looks at the issues from the perspective of the country as a whole, and the policies affecting the economy. Thus:

A) The effects of the Internet on the pricing of used cars. (Microeconomics)

B) The effect of government regulation on a monopolist's production decisions. (Microeconomics)

C) The effects of government tax policy on long-term economic growth (Macroeconomics)

3 0
3 years ago
Employees have leadership prototypes, which they use to Multiple Choice decide whether a leader is effective based on their perc
VikaD [51]

Based on implicit leadership theory, Employees have leadership prototypes, which they use to "<u>decide whether a leader is effective based on their perception of how the leader should look and act."</u>

<h3>What is Leadership Prototype?</h3>

Leadership Prototype generally occurs when people evaluate or assess a leader's effectiveness.

Leadership prototypes are implicit leadership whereby individuals use the cognitive indication of an actual or abstract leader believed to possess all leaders' attributes.

Hence, in this case, it is concluded that the correct answer is to "<u>decide whether a leader is effective based on their perception of how the leader should look and act."</u>

Learn more about the Leadership prototype here: brainly.com/question/9772602

5 0
2 years ago
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