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Anni [7]
2 years ago
10

"If $120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with annual payments of $11,680.36, how

much interest (as opposed to return of capital) is paid in the last year of the loan"
Business
2 answers:
Sunny_sXe [5.5K]2 years ago
8 0

Answer:

$964

Explanation:

to calculate this I will prepare a payment schedule on excel:

  • APR = 9%
  • principal = $120,000
  • n = 30 annual payments
  • payment = $11,680.36

the last years payments will include $964 paid in interests and $10,716 in principal

As more payments are made, the principal balance n the loan decreases, so the next payment will include less interests and more principal.

Download pdf
Elza [17]2 years ago
7 0

Answer:

$ 1,592,121.121

Explanation:

Present Value at T=0 is $120,000

N = 30

I = 9%

PMT = $11,680.36

We shall calculate the Future Value without PMT and then with PMT. The difference would be the amount of interest paid.

FV at T = 30 with PMT is -$3,184,242.537

FV at T = 30 without PMT is -$1,592,121.416

The total interest paid on the loan is = $ 1,592,121.121

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Explanation:

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3 0
3 years ago
Credit card companies track your transactions. how can they abuse this?
Alexus [3.1K]
Answer:
Credit card companies can invade your privacy by monitoring all your credit card transactions and making decisions, whether correct or incorrect, about your credit worthiness and your character.

Explanations:
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For example, if you use your credit card to pay for groceries, utilities, and ordinary bills, a credit card company could assume that you are in financial distress and make a decision to reduce your credit limit.
If a person uses a credit card often at a casino or gambling locations, that could also signify to credit card issuers that the person may not be using money wisely, and may not be willing to provide more credit to the gambler.

To sum it up, personal privacy is lost whenever a person uses a credit card. Credit card issuers may form opinions about a card holder that may be correct or incorrect, based on the person's credit card transactions.

7 0
3 years ago
If luke can bake bread at a lower opportunity cost than jason, and jason can produce paintings at a lower opportunity cost than
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Answer:

The correct answer is option d.

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This implies that Luke has a comparative advantage in baking bread and Jason has a comparative advantage in making paintings.

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8 0
3 years ago
On December 1, 20X4, Line Corp. received a donation of 2,000 shares of its $5 par value common stock from a stockholder. On that
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Answer:

$0

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7 0
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