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
LekaFEV [45]
3 years ago
5

Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and financed the balance for 12 years at 7.2

percent, compounded monthly. What is the amount of each monthly mortgage payment
Business
1 answer:
Leya [2.2K]3 years ago
6 0

Answer:

$9,352.27

Explanation:

25% of 1.2million

25/100×$1,200,000

=$900,000

Monthly mortgage Payment (p)=r(PV)/{1-(1+r)^-n}

Present value (PV)=$900,000

r=7.2%/12

=7.2/100÷12

=0.072/12

r=0.006

n= 144(12 years×12months)

P=r(PV)/{1-(1+r)^-n}

=0.006×$900,000/{1-

(1+0.006)^-144

=$5,400/{1 - (1.006)^-144}

=$5400/{1 - 0.4226}

=$5,400/0.5774

=$9,352.27

You might be interested in
whether you write a on page resume a two page resume, or a combination of both, what is the key to writing an effective resume
MariettaO [177]
There’s no problems in the writing
8 0
3 years ago
Read 2 more answers
An IAR has opened an account for a new customer. The customer is "on the road" for 3-4 weeks per month and has given the IAR ver
kobusy [5.1K]

Answer:

The investment advisory firm which employs the investment adviser representative (IAR).

Explanation:

FINRA's rules specifically state that before any transaction, the IAR must have a signed power of attorney. The IAR cannot start trading or operating with the client's money until he/she has received a signed written power of attorney from the client. Only after the signed power of attorney has been given tot eh IAR, can he/she act on discretionary basis.

If the IAR is not a registered broker-dealer, then NASAA rules state that oral agreements are valid for up to 10 business days, but the IAR must have a written authorization after that time expires. I.e. the IAR could buy the stocks, but he/she was not authorized to sell them. So any loss is responsibility of the firm that employs the IAR.

6 0
3 years ago
Your firm has a credit rating of A. You notice that the credit spread for​ five-year maturity A debt is 85 basis points (0.85 %
Hunter-Best [27]

Answer:

$1,172.97

Explanation:

We use the Present value formula i.e to be shown in the attached spreadsheet. Kindly find it below:

Given that,  

Assuming figure Future value = $1,000

Rate of interest = 1.9% + 0.85% = 2.75%

NPER = 5 years

PMT = $1,000 × 6.5% = $65

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price of the bond is $1,172.97

7 0
3 years ago
Nike allows customers to design their own sneakers, which improves the value customers see in the brand. this is an example of?
Stels [109]

This is an example of <u>value co-creation.</u>

<u></u>

<u></u>

<u></u>

What is value co-creation?

  • Value co-creation is the joint creation of value by the company and the customers, allowing the customers to co-construct the service experience to suit their context.
  • Subsequently, given that the co-creation of value not only affects the bilateral relationship between the consumer and the company, the definition has been transformed to incorporate the multiple agents involved in the process.
  • Value co-creation describes the way actors behave, interact, interpret, experience, use, and evaluate propositions based on the social construction of which they are a part.
  • The first studies on co-creation assimilated this concept to that of co-production, defined as the participation of the consumer in some of the phases of the development of new products, mainly applied in leading brands.

To know more about value co-creation, refer:

brainly.com/question/14970562

#SPJ4

8 0
2 years ago
Big Valley has a times interest earned ratio that is _________, which indicates that Big Valley has _________ long-term insolven
irina1246 [14]

Answer:

C. 3.91; more

Explanation:

the first part of the question is missing. It involved several aspects of Big Valley including its current and quick ratios, ROE and how they compare to the industry's average (they are generally lower than the industry's average).

This particular question refers to times interest earned ratio = EBIT / interest expense = 3.91, and how it compares to the industry's average (it is higher than the industry's average).

Since Big Valley performs poorly against the industry's average when comparing the other 3 metrics, but performs very well in the times interest ratio, it means that Big Valley has a low debt ratio. A low debt ratio results in lower financial leverage and lower interest expense.

5 0
2 years ago
Other questions:
  • A _____ is something that has been learned.
    11·2 answers
  • Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Busines
    5·1 answer
  • Discount-Mart issues $10 million in bonds on January 1, 2012. The bonds have a ten-year term and pay interest semiannually on Ju
    15·1 answer
  • Risers Inc. reported total assets of $3,200,000 and net income of $255,000 for the current year. Risers determined that inventor
    15·1 answer
  • _____________ is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international tra
    5·1 answer
  • Who is John Kulczyk ?
    9·1 answer
  • The Holt fund has $500 million in assets, 80 million in debt and 15 million shares at the start of the year. At the end of the y
    6·1 answer
  • A customer of RoughEdge Sharpeners alleges that RoughEdge's new razor sharpener had a defect that resulted in serious injury to
    11·1 answer
  • Buying a house is most likely a long-term goal for a person of which of these ages?
    7·1 answer
  • In the early days of selling, companies studied and wrote down the sales pitches of their most successful people, and created ca
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!