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
butalik [34]
3 years ago
12

"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:
Lelu [443]3 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
Alex_Xolod [135]3 years ago
4 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

You might be interested in
The winner of the first annual Tom Morris Golf Invitational won $115 in the competition which was held in 1901. In 2015, the win
pickupchik [31]

Answer:

$31,920,341.91

Explanation:

The computation is shown below:

For computing the receiving amount in 2052 first we have to determine the rate which is shown below:

Current value = Initial value × (1 + interest rate)^time period

$1,480,000 = $115 × (1 + interest rate)^114

So, after solving this, the interest rate is 8.654%

Now the received amount in 2052 is

= $1,480,000 × (1 + 0.8654%)^37

= $31,920,341.91

The time period is come from

= 2015 - 1901

= 114

And, the 37 years is come from

= 2052 - 2015

= 37

5 0
3 years ago
Garth was amazed to hear that his friend Lindsey always pays off her credit card balance each month. Garth just assumed that eve
vampirchik [111]

Answer:

Garth is a "REVOLVER "

Explanation:

Garth is a "Revolver" type of credit user, because he  doesn't pay up the  monthly payments on his card in full and on time, instead he carries debts over to the other months by paying in monthly installments

Based on the type of credit user Garth is, when picking up a credit card Garth should consider going for credit cards with low interest rate/APR charges and a longer grace period as well.

4 0
3 years ago
Joe received a W-2 from his employer that showed he earned $ 45,000 in wages last year. He received a
Neko [114]

it is b i thinkk

nrfdohyou

5 0
3 years ago
When the interest rate in the U.S. rises, U.S. financial assets: become less attractive to foreign buyers. become more attractiv
rodikova [14]

Answer:

Becomes less attractive to domestic buyers and more attractive to foreign buyers.

Explanation:

When the interest rates rise, it attracts foreign buyers. This increases the demand and value of the United States dollar. lower interest rates is unattractive for foreign investment and decreases the value and demand of the dollar.

But on the other hand,a higher interest rate is unattractive to domestic buyers.

8 0
3 years ago
On the day of a child's birth, a parent deposits $35,000 in a trust fund that pays 4% interest, compounded continuously. Determi
Dmitrij [34]

Answer:

$91,409

Explanation:

Balance = 35000*e^(0.04*24)=$91409

6 0
3 years ago
Read 2 more answers
Other questions:
  • A system where a signature or profile is created from the observation of usage over time. this signature is used as a baseline t
    8·1 answer
  • Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credi
    9·1 answer
  • As the role of coach, the supervisor is expected to:
    14·1 answer
  • Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
    15·1 answer
  • The sales era emerged because of an increased need to move products during the Great Depression.
    15·1 answer
  • Compute the Cost of Goods Sold for 2016 using the following information: Direct Materials, Jan. 1, 2016$50,000 Work-in-Process,
    11·1 answer
  • 3:Leo's rent is due a few days before he expects to receive his paycheck from work. He takes out a
    11·1 answer
  • On January 1, Novak Corp. issued $3600000, 14%, 5-year bonds with interest payable on December 31. The bonds sold for $3859546.
    6·1 answer
  • His lesson starts on time (change into negative)​
    9·2 answers
  • On average, consumers spend only about _______________ seconds deciding to buy one brand as opposed to another branded option fr
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!