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Ray Of Light [21]
3 years ago
14

You are considering the purchase of a home that would require a mortgage of $150,000. How much more in total interest will you p

ay if you select a 30-year mortgage at 5.65% rather than a 15-year mortgage at 4.
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

$111,991.59

Explanation:

using a loan calculator, I found the following information:

principal $150,000

apr 5.65%

360 monthly payments of $865.85

total payments $311,707.33

total interest charged on the loan $161,707.33

principal $150,000

apr 4%

180 monthly payments of $1,109.53

total payments $199,715.74

total interest charged on the loan $49,715.74

if you choose the 30 year mortgage, you will pay $161,707.33 - $49,715.74  = $111,991.59

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Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total inves
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Answer:

1.74%

Explanation:

                               17% Debt       50% Debt

Sales                      $500,000      $500,000

Less: Cost              $450,000      $450,000

Less: Interest         <u>$5,546</u>           <u>$17,400</u>

Profit before tax   $44,454        $32,600

Less: Tax at 35%  <u> $15,559</u>          <u>$11,410</u>

Net Income           <u> $28,895</u>        <u>$21,190</u>

Equity                     $361,050        $217,500

Return on Equity   8.00%             9.74%

Change in ROE = 9.74% - 8.00% = 1.74%

Workings

Interest (17% Debt) = 43,500*17%*7.5% = $5,546

Interest (50% Debt) = 43,500*50%*8% = $17,400

Tax (17% Debt) = $44,454 * 0.35 = 15,559

Tax (50% Debt) = $32,600 * 0.35 = 11,410

Equity (17% Debt) =435,000*83% = 361,050        

Equity (50% Debt) = 435,000*50% = $217,500

Return on Equity = $28,895/$361,050 = 8.00%

Return on Equity = $21,190/$217,500 = 9.74%

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3 years ago
Assignment Background Ellie Johnson Associates surveys American eating habits. The company's 1) Using the General Journal tab, c
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Answer

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Explanation  

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If you stare at a red patch and then look at a red apple, will your experience of the redness of the apple be stronger or weaker
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Read 2 more answers
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the product
jek_recluse [69]

Answer:

Product 1  - $36

Product 2 -  $ 96  

Product 3  -  $66

Explanation:

The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.

These costs includes cost of purchase, freight, Insurance cost during transit etc.  

Subsequently, inventory is to be carried at the lower of cost or net realizable value.

The NRV is the Selling price less the cost to sell.

Given

                             Product 1       Product 2        Product 3

Cost                            $36              $ 106              $ 66

Selling price               $ 88              $ 168             $ 118

Costs to sell                $ 9                $ 72              $ 26

NRV                             $ 79               $ 96              $ 92

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