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3 years ago

If you have a $150,000 30-year 5% mortgage, how much of your first monthly payment of $805.50 would go toward principal?

Business

2 answers:

MariettaO [177]3 years ago

8 0

Answer:

$180.5

Explanation:

First, we would determine the amount that goes toward the interest by dividing the interest rate by 12 months to have the monthly interest rate and then, multiply that for the total amount of the loan:

$150,000 × (0,05/12) = $625

Now, that we have the amount that goes toward the interest, we subtract this from the first monthly payment to find the amount that goes toward the principal that is the quantity you borrowed:

$805.50-$625= $180.5

The amount of the first monthly payment of $805.50 that would go toward the principal is $180.5.

Mama L [17]3 years ago

5 0

The answer is $625.000

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1 year ago

Which of the following statements about the relationship between the financial market and the

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3 years ago

During the last year, Exeter Enterprise Inc. generated $702.00 million in cash flow from operating activities and had negative c

kakasveta [241]

Answer:

a.) -$254.00 million

* The option given in the question is inconsistent with question's data so that the answer is not matched. Following Question is the correct. Please refer my following solution to this question

During the last year, Len Corp. generated $936 million in cash flow from operating activities and had negative cash flow generated from investing activities (-$512 million). At the end of the first year, Len Corp. had $160 million in cash on its balance sheet, and the firm had $330 million in cash at the end of the second year. What was the firm's cash flow (CF) due to financing activities in the second year?

a.) -$254.00 million

b.) -$127.00 million

c.) $317.50 million

d.) $190.50 million

Solution based on above data:

Cash Balance at the end of Year 2 = Cash Balance at the start of Year 2 + net cash flow for year 2

Cash Balance at the end of Year 2 = Cash Balance at the start of Year 2 + ( Cash flow from operating activities + cash flow from Investing activities + cash flow from Financing activities

$330 million = $160 million + ( 936 million + (-$512 million ) + cash flow from Financing activities )

$330 million = $160 million + ( 936 - $512 million + cash flow from Financing activities )

$330 million = $160 million + 424 million + cash flow from Financing activities

$330 million = $584 million + cash flow from Financing activities

Cash flow from Financing activities = $330 million - $584 million

Cash flow from Financing activities = - $254 million

Explanation:

According To given data:

Cash Balance at the end of Year 2 = Cash Balance at the start of Year 2 + net cash flow for year 2

Cash Balance at the end of Year 2 = Cash Balance at the start of Year 2 + ( Cash flow from operating activities + cash flow from Investing activities + cash flow from Financing activities

$305 million = $120 million + ( 702 + (-$384 million ) + cash flow from Financing activities )

$305 million = $120 million + ( 702 - $384 million + cash flow from Financing activities )

$305 million = $120 million + 318 million + cash flow from Financing activities

$305 million = $438 million + cash flow from Financing activities

Cash flow from Financing activities = $305 million - $438 million

Cash flow from Financing activities = - $153 million

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3 years ago

The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts ha

trasher [3.6K]

Answer and Explanation:

The preparation of the income statement is presented below:

Service revenue $634,900

Less:

Depreciation Expense $10,000

Insurance Expense 9,000

Miscellaneous Expense 8,150

Rent Expense 60,000

Supplies Expense 4,100

Utilities Expense 44,700

Wages Expense 548,200

Net loss -$49,250

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3 years ago

Johnson Production Company paid a dividend yesterday of $3.50 per share. The dividend is expected to grow at a constant rate of

Flauer [41]

Answer:

0.19625 or 19.63%

Explanation:

Cost of retained earnings, r:

$=\frac{D0\times(1+g)}{P0}+g$

where,

D0 = Dividend paid yesterday

g = Expected growth rate of dividend

P0 = Current price of common stock

$=\frac{3.50\times(1+0.1)}{40}+0.1$

$=\frac{3.85}{40}+0.1$

= 0.09625 + 0.1

= 0.19625 or 19.63%

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3 years ago