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Sati [7]
4 years ago
12

15. You have been working for five years after college and are ready to buy your first home. Homes in the area you want to live

in cost $550,000. The biggest mortgage you can afford is $300,000. What is the down payment you will need to pay
Business
1 answer:
PIT_PIT [208]4 years ago
7 0

Answer:

$250,000

Explanation:

the down payment = cost of the house - mortgage  = $550,000 - $300,000 = $250,000

Something is not right with this question, because if you have been able to save $250,000 in 5 years, it means that you saved around $50,000 a year. If you were able to save that much money per year, then you should be able to pay a higher mortgage. The average 30 year mortgage has an APR of a little over 4% (national average between 4.04% - 4.16%). That would result in a monthly payment of around $1,151 including insurance.

So you should either go to another bank (if your salary is really that high) or search a cheaper house.

You might be interested in
You are considering purchasing a stock that currently sells for $48. The expected price of the stock in a year is $46, and durin
o-na [289]

Answer:

Holding Period return is 6.25%

Explanation:

The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.

According to given data

Initial Price of stock = $48

Expected Value in coming year = $46

Expected Dividend =  $5

Formula for Holding Period Return

HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ Expected Dividend + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ $5 +  ( $46 - $48 ) ] / $48

HPR = [ $5 - $2 ] / $48

HPR = $3 / $48

HPR = 0.0625 = 6.25%

5 0
3 years ago
The process of recording a transaction in the journal is called a.journalizing b.posting c.ledgerizing d.summarizing
8090 [49]

Answer: Journalizing

Explanation:

Journalizing is the process of entering business transactions in accounting journals. The key records to be taken in journalizing is usually the: date of transaction, brief description of transaction, the record of amount credited/debited.

4 0
3 years ago
An alternative form of the accounting equation is:_______.
lana [24]

Answer:

d. Assets - Liabilities = Stockholders' Equity.

Explanation:

The principle of double entry booking rests upon the accounting equation.  the accounting equation states that (where correct and accurate accounting books are kept), the total asset of a corporation must equal the addition of the corporation's total liabilities and Stockholders' equity.

The following is the basic formula for accounting equation

                                   Assets = Liabilities + Stockholders' equity

Rearranging the above basic equation, we have the  alternative form of the accounting equation.

                                    Assets = Liabilities + Stockholders' equity

Subtract Stockholders' equity from both sides of the equation

Assets - Stockholders' equity = Liabilities + Stockholders' equity -  

                                                     Stockholders' equity

                  Assets - Liabilities =  Stockholders' equity

5 0
3 years ago
If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the result
Anna [14]

Answer:

d. The price will stay the same, but the quantity will increase.

Explanation:

When the demand and supply both fall, the equilibrium quantity will definately fall but the price will remain the same. The new supply adapts to the reduction of the demand.

6 0
3 years ago
A professional gambler moves from a state where gambling is illegal to a state where gam-bling is legal. Most of his income was,
Murrr4er [49]

Answer:

The answer is: A) raises GDP.

Explanation:

If a gambler is a professional gambler (pays income tax on his gambling earnings) then when he moves from a state that prohibits gambling to a state that allows gambling, his earnings will increase the GDP.

The GDP only considers legal income, so illegal activities such as prostitution, drug trafficking, or illegal gambling are not included in the GDP. But if they become legal (e.g. some states legalized marijuana) then they should be included in the GDP.

4 0
3 years ago
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