1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vodomira [7]
3 years ago
14

What is the new payment on a 25-year, monthly payment, adjustable-rate mortgage after five years if the interest rate changes fr

om 9.75% to 8.75% The original amount of the loan was $125,000, the original term was 25 years, and there are 20 years left on the mortgage. Round your answera. $1,050
b. $1,150
c. $1,000
d. $1,100
Business
1 answer:
Neko [114]3 years ago
4 0

Answer:

Option A is correct

Explanation:

R = [P*(r/12)]/[1-(12/(12+r))]^(12*r)

t = time = 25 years

P = initial principal = 125000

R = initial interest rate = 9.75

So therefore:

R = 125000* (0.0975/12)/[ 1 - (12/(12+0.975)]^(300)

R = 1015.625/(1-0.088)

R = $1113.62 per month

Compounding R for the first five years = 6205.4

Balance = 125000 - 6205.4 = 118792.7

So therefore with the new rate = 8.75

New P = 118792.7

t = 20

R = 118792.7*(0.0875/12)/[1- (12/(12+0.0875))^(240)]

R = 866.197/0.825

R = 1049.93 = $1050

You might be interested in
Slavery, as a business practice protected by state laws, provided unfair advantage against those employers not using slaves, and
romanna [79]
True, some people could not have slaves
6 0
3 years ago
2. Carla has 15 items on her "to do " list when she arrives at work today. By noon she has completed 3/5 of the items. How many
melamori03 [73]
C would be the correct answer. Because you can divide 15 by 5 and then multiply 3 by 3.
6 0
3 years ago
Exercise 9-2 Recording known current liabilities LO C2 Listed below are a few transactions and events of Piper Company. Piper Co
Virty [35]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $10,400

             To Sales $10,000

              To Sales taxes payable $400

(Being the cash is recorded)

Here we debited the cash as  it increased the assets and we credited the sales and sales tax payable as  it increased the sales and the liabilities

2. Cost of goods sold Dr, $5,000

                 To Merchandise inventory $5,000

(Being cost of goods sold is recorded)

Here we debited the cost of goods sold as it increased the expenses and we credited the merchandise inventory as  it reduced the assets

3. Unearned services revenue Dr, $50,000

              To Earned services revenue $50,000

(Being unearned service revenue is recorded)

Here we debited the unearned service revenue as it decreased the liabilities  and we credited the earned service revenue as it increased the revenue

6 0
3 years ago
Inga invested part of her $6000 savings in common stock and the rest in rare stamps. At the end of the year, she realized a gain
kherson [118]

Answer:

The amount Inga invested in stamps is $2,500.

Explanation:

Let x represents the amount invested in common stock. Therefore, we have:

Amount invested in common stock = x

Amount invested in stamps = 6000 - x

Rc = Rate of gain from common stock = 9%, or 0.09

Rs = Rate of gain from common stock = 12%, or 0.12

Amount of saving now = $6615

Therefore, we have

Amount of saving now = (x * (1 + Rc)) + ((6000 - x) * (1 + Rs)) ………….. (1)

Substituting all the relevant values into equation (1) and then solve for x, we have:

6615= (x * (1 + 0.09)) + ((6000 - x) * (1 + 0.12))

6615 = (x * 1.09) + ((6000 - x) * 1.12)

6615 = 1.09x + (6720 - 1.12x)

6615 = 1.09x + 6720 - 1.12x

6615 - 6720 = 1.09x - 1.12x

-105 = -0.03x

x = -105/-0.03

x = 3,500

Therefore, we have:

Amount invested in stamps = 6000 - x = $6,000 - $3,500 = $2,500

Therefore, the amount Inga invested in stamps is $2,500.

5 0
3 years ago
On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the
Arlecino [84]

Answer:

Following are the response to the given choice.

Explanation:

A residual value guaranteed                                 36000

Less: Residual value expected                              35000

Difference                                                                   1000                

5%, 5 periods PV Factor                                         0.7835

PV of the amount added                                          $784

Added Amount =                                                        $784

3 0
3 years ago
Other questions:
  • The Department of Business and Professional Regulation (DBPR) is under which branch of government? A) Administerial B) Legislati
    7·1 answer
  • Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education.
    8·2 answers
  • Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds, respectively. Because of
    15·1 answer
  • Sixty-second Avenue Inc. expects to earn $5,700,000 this year. The company currently has 790,000 shares outstanding, and the sha
    6·1 answer
  • Set during the marketing research process, __________ are the specific, measurable goals the decision maker seeks to achieve in
    5·1 answer
  • The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1
    8·1 answer
  • Which of the following results in positive benefits to individuals, the group, or the organization? a. Functional conflict b. Em
    10·2 answers
  • The company uses a custom-made software program to manage its inventory. The company paid a consulting firm $32,000 to develop t
    7·1 answer
  • Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $172,800 to $215,
    11·1 answer
  • ↑ State 4 ways in which a business may increase its profit ​
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!