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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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Answer:

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Explanation:

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3 years ago
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6 0
2 years ago
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Answer:

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If the price of LCDs falls, the quantity demanded would increase. This would lead to an increase in demand for the players too. The increase in demand for the players leads to a rise in price of the players.

I hope my answer helps you.

7 0
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