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GalinKa [24]
3 years ago
14

A woman buys a house for a ​$320000. She pays ​$40000 down and takes out a mortgage at 5.7​% for 20 years on the balance. Find h

er monthly payment and the total amount of interest she will pay. The woman will make payments of ​$ nothing.
Business
1 answer:
sdas [7]3 years ago
3 0

Answer:

PMT= 1957.850

Explanation:

For this case the total payment is $320000, and she pays $40000 so the remain amount to pay would be:

$320000-40000=$ 280000

For this case we assume that the annual interest rate is APR=5.7% =0.057 on fraction.

The total number of years are 20. For this case n represent the number of payments per year and since we have monthly payments then n =12.

In order to find the PMT we can use the following formula:

PMT= \frac{P(\frac{APR}{n})}{[1-(1+\frac{APR}{n})^{-nt}]}

On the last expression the APR needs to be on fraction and P represent the principal amount, for this case P = $280000. So if we replace we got:

PMT= \frac{280000(\frac{0.057}{12})}{[1-(1+\frac{0.057}{12})^{-12*20}]}

PMT= 1957.850

And we can verify this using the following excel function: "=PMT(0.057/12,12*20,-280000)"

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klasskru [66]

Answer:

The future value is $6,894.21

Explanation:

Giving the following information:

Dominic Joseph deposits $5,000 in a new savings account. The account pays 5.5 percent interest compounded annually.

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

PV= 5,000

i= 0.055

n=6

FV= 5,000*(1.055)^6= $6,894.21

5 0
3 years ago
Categorize each of the following items as an S-strength, W-weakness, O-opportunity, or T-threat. " WALMART SWOT ANALYSIS"
sergejj [24]

Answer:

Established Name Brand - S - Brings in more customers

Low Prices(Low Cost Leadership ) - S - Retaining customers

Unfair Employment Practices - T - Negatively affects the brand image

Pressures Suppliers on Cost - S - Have bargaining power on suppliers

Recession - T - Can bring down customer spending

Other big box retailers(Target) - T - Competition

Small Towns - O - Not many players

International Markets - O  - Growth prospects

Products Made in China - O - Lower prices

Product Safety - S - Retaining customers

Large Purchases (Buy in Bulk) - S - Cost savings

Internet Retailing - O - New growth opportunity

Customer Base - S - Large customer base

No Urban Locations - O - Opportunity to expand

Health Care for Employees - S - Employee satisfaction

Global Presence - S - Large customer base

Price Competition - O - Best in industry

Product Quality  - Retaining customers

Customer service- S - Retaining customers

Distribution/Logistics System - S - Lower costs

One Stop Shop  - S - Retaining customers

In 15 Countries—not in Europe except for United Kingdom  - Opportunity to grow in Europe

Sam’s Club - O - Customer loyalty

Minimum Wage Laws - T - Higher costs

Rising Labor Costs in China - T - Higher costs

Healthcare Costs - T - Higher costs

12% Lower Grocery Prices - S - Cost leadership

Litigation by employees - T - Negatively affects the brand image

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4 0
2 years ago
Brianna is the top-performing cheerleader and captain of the cheer team. Which of the following statements would result in the a
Reptile [31]
C should be the correct answer if not it’s A
3 0
3 years ago
Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with
Mamont248 [21]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She has a choice of receiving a payment of $160,000 immediately or of receiving deferred perpetuity with $10,000 annual payments, the first payment occurring in exactly four years.

A) i= 5%

First, we need to determine the value of the perpetuity four years from now.

Perpetuity= 10,000/0.05= 200,000

Now, we can calculate the present value:

PV= 200,000/(1.05^4)= $164,540.50

B) i= 6%

Perpetuity= 10,000/0.06= $166,666.67

PV= $166,666.67/1.06^4= $132,015.61

C) She should consider her necessities of cash and the value of the products she can purchase now.

5 0
3 years ago
5. A business in its first period of trading charges $4,000 of sales tax on its sales and suffers $3,500 of sales tax on its pur
Katyanochek1 [597]

The unrecoverable sales tax on business entertaining ($250) has been deducted from $3,500

solution

                                   SALES TAX CONTROL ACCOUNT

Payable s                                             $ 3250        Receivables       $4000

Balance c/d (owned to tax authority)   $ 750

                                                           -------------                                ---------------

                                                             $ 4000                                    $4000

                                                           --------------                               ----------------

                                                                              By balance b/d       $ 750

8 0
3 years ago
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