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AveGali [126]
3 years ago
9

You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of

the loan value. You have an annual salary of $48000 (monthly income $4000) , and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan. How much can you offer for the house
Business
1 answer:
Bess [88]3 years ago
7 0

Answer:

So we can offer for the house $180119.95

Explanation:

Monthly income =$4000

Monthly mortgage payment allowed (P)= 25% of 4000= $1000

Interest rate per month (i)= 0.5%

Number of months in total (n)= 30*12= 360

Maximum loan affordable = P*(1-(1/(1+i)^n))/i

=1000*(1-(1/(1+0.5%)^360))/0.5%

=$166791.61

Closing cost is 4% of loan value = 166791.61*4% =$6671.66

Balance Amount left for down payment = 20000-6671.66

=$13328.34

It means we can pay $6671.66 for closing cost of Loan and $13328.34 for down payment.

Cost of house paid maximum = Down payment + Affordable loan

=13328.34+166791.61

=$180119.95

So we can offer for the house $180119.95

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hichkok12 [17]

Answer:

True

Explanation:

A LLC is a company that has its own identity and is taxed separated from all owners and investors.

6 0
3 years ago
Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune
Contact [7]

Answer:

a. If the interest rate was 8%, how much would you have been prepared to bid for the prize?

this is an ordinary annuity:

annual payment = $9,420,713 / 20 = $471,035.65

number of periods = 19 periods

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therefore, the present value annuity factor = 9.6036

the present value of the annuity = $471,035.65 x 9.6036 = $4,523,637.97 ≈ $4,523,638

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using the IRR function in Excel, the return that Enhance was looking for was 9.05%

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3 years ago
Select the correct answer.
Lana71 [14]

Answer:

B-section 404

Explanation:

it is registered as 404

6 0
3 years ago
The Food and Drug Administration (FDA) announced yesterday that they would approve a new cancer-fighting drug from Pharma Compan
Julli [10]

Answer:

the approval was already anticipated by the market

Explanation:

This abnormal return of 0% suggests that the approval was already anticipated by the market. Meaning that the price of the Pharma company's stock had already been affected by the speculation previously and when the FDA made the announcement investors had already made their move in the market with regards to Pharma's stock. Thus causing no further move and a return of 0% to occur.

5 0
3 years ago
Integrated Devices, Inc., is a private, for-profit corporation that is owned by seven shareholders who are members of the same f
atroni [7]

Answer:

b. a close corporation

Explanation:

A closed corporation refers to a company in which shares are held by select few individuals who usually are closely linked with business. Such form of a company is also referred to as family corporation.

In these form of corporations, the investments from outsiders are closed i.e from general public and thus referred to as a close corporation. Shareholding belong to owners or family members in most of the cases.

Such firms are not listed on stock exchanges and hence do not permit general public to subscribe to their shares. Wherein, any one of the shareholders desires to liquidate his share, the other members buy out such share.

In the given case, Integrated Devices Inc., a private, for profit company is wholly owned by members of the same family. Thus, it represents a close corporation.

7 0
3 years ago
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