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Kisachek [45]
3 years ago
7

Mathew bought a home for $245,000 using a 20% down payment. He obtained a 30-year fixed-rate mortgage at six percent (6%)for the

remainder of the funds. His monthly principal and interest payment is $1175.12. What will the principal balance on the mortgage be after the second payment is made?
Business
1 answer:
kenny6666 [7]3 years ago
7 0

Answer:

Principal Balance at the end of the second payment or year:

$198,350.24

Explanation:

Schedule

    start principal  start balance   interest end balance end principal

1    $196,000.00  $196,000.00  $11,760.00 $208,935.12 $197,175.12

2   $197,175.12    $208,935.12   $12,536.11 $222,646.35 $198,350.24

Cost of Home  =      $245,000

less down payment  = 49,000 (20% of $245,000)

Starting principal =  $196,000

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<h3>What is crossover point?</h3>

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When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.

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All options are missing firm the question-

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