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pshichka [43]
3 years ago
8

On September 1, year 1, Jackson borrowed $400,000 to refinance the original mortgage on her principal residence. Jackson paid 2

points to reduce her interest rate from 7.5 percent to 7 percent. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid?
Business
1 answer:
Mazyrski [523]3 years ago
7 0

Answer:

$88.88 or $89 (Approx)

Explanation:

Each point is equal to the 1 percent so, 2 points is equal to the 2%.

Amount of points paid = Borrowed amount × Points percentage

= $400,000 × 2%

= $8,000

Total number of months = Year × Months in a year

                                        = 30 × 12

                                        = 360

Number of months in the deduction year = September to December

                                                                     = 4

Amount of deduction:

= (Amount of points paid ÷ Total number of months) × Number of months in the deduction year

= ($8,000 ÷ 360) × 4

= $32,000 ÷  360

= $88.88 or $89 (Approx)

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Explanation:

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When a country is too small affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.

this is so because if the country is efficient in production of a good (producing at a lower price when compared to the world price), export of the good would increase thus increasing producer surplus. if on the other hand, the country is inefficient in producing a good and the country allows for free trade, the country can import the good. this would increase consumer surplus.

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3 years ago
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d. a and b

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I hope it helps.

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<h3>What is a flow rate in production?</h3>

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