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Anna35 [415]
3 years ago
10

Suppose a bank decides to make a mortgage loan to an individual so that she may purchase a home. The homeowner will pay the bank

$1,500 per month in mortgage payments for the next thirty years. The bank will collect the mortgage payments at the end of the month. What is this promised stream of cash flows worth to the bank today if they could reinvest the monthly income at an annualized rate of 5% for the entire investment horizon?
Business
1 answer:
Nesterboy [21]3 years ago
4 0

Answer:

The answer is $279,422.42

Explanation:

The promised stream of cash flows can be calculated using the below formula

=PMT*((1-(1+(i/t))^(-n*t))/(i/t))

PMT is the periodic mortgage payment of $1,500

i is the interest rate of 5% annualized rate

n is number of years which 30 years

t is the period in a year ,12 months

=1500*((1-(1+(5%/12))^(-30*12))/(5%/12))

=$279,422.42

The promised stream of cash flows worth $279422.42

Ordinarily, n would have been 30 years, but since we are looking the cash flows from a monthly perspective and there 12 months in a year, the best bet is to multiply 30 by 12 (30 years where each year has 12 months)

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what best describes ""accountability"" in journalism? group of answer choices representing and telling stories of company matter
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1 year ago
Consumers have certain rights that do not carry corresponding responsibilities. true or false.
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Thank you for posting you question here at brainly. I think the statement "<span>Consumers have certain rights that do not carry corresponding responsibilities." is false. Below are the right of the consumer:

</span><span> <span><span> <span> Right to Safety</span> </span> <span> <span> Responsibility of Right to Safety</span> </span> <span> <span> Right to Be Informed</span> </span> <span> <span> Responsibility of Right to Be Informed</span> </span> <span> <span> Right to Choose</span> </span> <span> <span> Responsibility of Right to Choose</span> </span> <span> <span> Right to Be Heard</span> </span> <span> <span> Responsibility of Right to Be Heard</span> </span> <span> <span> Right to Redress</span> </span> <span> <span> Responsibility of Right to Redress</span> </span> <span> <span> Right to Consumer Education</span> </span> <span> <span> Responsibility of Right to Consumer Education</span> </span> <span> <span> Right to Healthy Environment</span> </span> <span> <span> Responsibility of Right to Healthy Environment</span> </span></span></span>
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3 years ago
Sean is looking for a new job that will allow him the flexibility to work from home at least one day a week so he can care for h
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<u>Answer</u>:

Boundaryless career pattern is similar as temporary workers.

<u>Explanation</u>:

“Boundaryless career” has been a new perspective in any organisation these days. This type of career pattern provides the employees flexibility in terms of working hours. They pay them high wages for their excellent skill set.  

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Answer:

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A preferable approach to productivity measurement is to record multiple physical measures that capture the most important determinants of a company's productivity.

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