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Sidana [21]
3 years ago
10

Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 a

t 12% compunded monthly for 15 years. What is the monthly payment?
Business
1 answer:
enot [183]3 years ago
3 0

Answer:

Monthly payment is $840.12

Explanation:

we are given: $70000 which is the present value of the loan Pv

                       12% compounded monthly where the interest rate is adjusted to monthly where i = 12%/12

the period in which the loan will be repaid in 15years which contain 15x12 = 180 monthly payments which is n

we want to solve for C the monthly loan repayments on the formula for present value as we are looking for future periodic payments.

Pv = C[((1- (1+i)^-n)/i] thereafter we substitute the above mentioned values and soolve for C.

$70000= C[((1-(1+(12%/12))^-180))/(12%/12)] then compute the part that multiplies C in brackets and divide by it both sides.

$70000/83.32166399 = C  then you get the monthly loan repayments

C = $840.12 which is the monthly repayments of the $70000 loan.

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Answer: Option C

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which if the following may not be purchased on margin but can be used as collateral for a margin loan after being held for 30 da
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<h3>What is purchased on margin?</h3>

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Through the method, an investors can amplify their returns if their investments outperform the cost of the loan itself.

In conclusion, the mutual funds can be purchased on margin. However, it  may be used as collateral for a margin loan after being held for 30 days.

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3 0
1 year ago
During 2018, Jerry is a self-employed therapist, and his net earned income is $187,600 from his practice. Jerry's SEP Plan, a de
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Answer:

$55,000

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A Simplified Employee Pension (SEP) Plan is used in the United States by employers or self-employed persons to provide retirement benefits for themselves and their employees

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