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Vladimir [108]
3 years ago
15

This morning, you borrowed $150,000 to buy a house. The mortgage rate is 7.35 percent. The loan is to be repaid in equal monthly

payments over 20 years. The first payment is due one month from today. How much of the second payment applies to the principal balance
Business
1 answer:
NeTakaya3 years ago
4 0

Answer:

$277.61 is applies  to the principal balance of the second payment.

Explanation:

Loan is provided to purchase any asset and pay it back on easy installment with some interest amount yearly.

Use following formula to calculate monthly installment:

P = (PV x r) / ( 1 - ( 1 + r )^-n )

P = ( $150000 x 7.35%/12 ) / ( 1 - ( 1 + 7.35% / 12 )^-240

P  = 1194.669

1st payment

Payment = $1,194.67

Interest = 150,000 x 7.35/12 = $918.75

Principal Payment = $1,194.67 - $918.75 = $275.92

Outstanding balance = $150,000 - $275.92 = 149,724.08

2nd Payment

Payment = $1,194.67

Interest = 149,724.08 x 7.35/12 = $917.06

Principal Payment = $1,194.67 - $917.06 = $277.61

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7 0
3 years ago
Gerritt wants to buy a car that costs $31,000. The interest rate on his loan is 5.67 percent compounded monthly and the loan is
gregori [183]

Answer:

$594.57

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment below:

Given that,  

Present value = $31,000

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Rate = 5.67% ÷ 12 months = 0.4725

NPER = 5 years × 12 = 60 years

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

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The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are
romanna [79]

Answer:

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In simple terms, a firm should be termed more successful than others if it's activities besides being profitable also impacts positively on people and protects if not improves the environment.

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3 years ago
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Answer:

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A type of manager that supports first line managers is known as
gayaneshka [121]

Answer:

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Explanation:

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