1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solmaris [256]
3 years ago
7

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 per

cent with 2.25 points. If the homeowner keeps the mortgage for 30 years, what is the net present value of paying the points?
Business
1 answer:
RSB [31]3 years ago
7 0

Answer:. $8629.386

Explanation:

P = 250,000

r = 6%

r with point = 5.5%

Points = 2.25%

N = 30years × 12 = 360months

1. Paying the points (Loan)= p × point

=$250,000 x .2.25 / 100 = $5,625 (CF0)

Payments with 6% loan

I = p/ (1 + r)^n

= $250000 / (1 + 0.06)^360

= $1940.11

Payments with 5.5% loan

I = p/ (1 + r)^n

= $250,000/ ( 1 + 0.055)^360

= $1064.276

Savings = $1940.11 - $1064.276

= $875.834

Net present value of paying the points.

= $5625 + $1940.11 + $1064.276

= $8629.386

You might be interested in
Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates
Sedaia [141]

Answer:

3,078.9

Explanation:

Given that,

customer orders $102.35 per customer order

Assembling products $2.65 per assembly hour

Setting up batches $54.31 per batch

Total cost:

= Customer order + Assembly hour + Batch

= [102.35 × 4] + [2.65 × 495] + [54.31 × 25]

= 409.4 + 1,311.75 + 1,357.75

= 3,078.9

Therefore, the overhead cost that would be assigned to Product F76D using the activity-based costing system is 3,078.9.

6 0
3 years ago
Drag each event to the correct location on the chart.
saul85 [17]

Answer

Increase- a popular new diet prescribes

only olive oil for weight loss

Increase- a report in news stating that

consumption of olive oil

improves health

Decrease- a decrease in the price

of other vegetable oil

Decrease- research shows that olive oil

consumption leads to hair loss

Explanation:

4 0
3 years ago
Advanced Enterprises reports year−end information from 2019 as​ follows: Sales​ (160,250 units) ​$969,000 Cost of goods sold ​(6
Ilya [14]

Answer:

Cost of goods sold = $576,900

Explanation:

The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .

Sales volume in year 2020= (100-10)% ×  sales figure for 2019

                                            = 90% × 160,250=  144,225  

Cost of goods sold per unit =  cost of goods sold in 2019/Sales units in 2019

                                              = 641,000/160250=$4

Cost of goods sold =  $4× 144,225 =  $576,900

Cost of goods sold = $576,900

3 0
3 years ago
Which theory suggests that a country should export those goods and services for which it is more productive than other countries
pogonyaev

Answer:

The theory of absolute advantage

Explanation:

The theory of absolute advantage is a quantity-based approach to measuring the productivity of nations with respect to their output in international commercial dealings.

The theory was an Adam Smith's submission that emphasizes that nations of the world should specialize in producing goods and services that they are most productive.

The theory failed to address a major problem that in gaining a benefit another alternative benefit is lost,hence  nations should also factor in the benefits they lose when they specialize in producing certain products.

7 0
3 years ago
When harvesting a venture, the outright purchase of the going concern by managers, employees, or external buyers is known as goi
timama [110]

Answer:

In simple words, Harvesting seems to be the tool used by traders and investors to get out of business and, preferably, to recover the interest of their investments in the company. It's about more than trying to sell and having to leave a company. It includes collecting interest, risk reduction, and developing opportunities for the future.

Whenever a marketing plan includes a harvest tactic, investment firms and borrowers are convinced that the proprietors aim to establish the market and start selling it to either international shareholders or go to another corporation.

5 0
3 years ago
Other questions:
  • year was $2.78 and is expected to be $3 at the end of this year, the current stock price is $60, and the growth rate for dividen
    15·1 answer
  • is a system of individuals and institutions, instruments and procedures that bring together borrowers and savers and facilitate
    15·1 answer
  • How much would you pay today for an asset that pays $1,000 per month, for 12 months, starting today if the interest rate is 4% A
    15·1 answer
  • Prior to 1750 and the onset of Industrial​ Revolution, very little economic growth occurred in the world. What marks the beginni
    7·1 answer
  • Selected information from the Blake Corporation accounting records for June follows: Materials Inventory BB (6/1) 78,000 450,000
    11·1 answer
  • JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at an annua
    12·1 answer
  • Wilbert's Clothing Stores just paid a $1.25 annual dividend. The company has a policy whereby the dividend increases by 2% annua
    13·1 answer
  • identify items that can be included under cash,articulate the risks and controls typically associated with these accounts and su
    7·1 answer
  • The use of effective contracts with penalties could reduce which form of supply chain risk?
    8·1 answer
  • taylor company had beginning inventory of $400 and ending inventory of $600. taylor company had cost of goods sold amounting to
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!