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marusya05 [52]
3 years ago
5

Chris bought a home for $225,000, putting down 20%. The mortgage is at 6 1/2% for 30 years. Determine his monthly payment

Business
1 answer:
azamat3 years ago
8 0

Since you are paying 20% up front, you are paying $45000 up front (.20*225000) which means you are borrowing

225000-45000 = $180,000.

 

Hopefully, you've learned the formula for figuring out the payment for an amortization problem. It is as follows:

 

A=P [(1+R/n)nt *R/n]  / [(1+R/n)nt -1] A is the amount for each payment, P is the principal, r is the rate, n is the number of payments per year and t is the time in years

 

So A = 180000 [(1+.065/12)12*30 * .065/12] / [(1+.065/12)360 -1]

   A  = 180000 [ .037872239/5.991797982]

   A  = 1137.72

 

So you will have 360 payments of 1137.72. So over the 30 years, you will pay 360 * 1137.72 = $409,579.20 and you only borrowed 180,000, which means when you subtract them, you'll have 229,579.20 in interest.

 

Hope this helped.



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Nezavi [6.7K]

Answer:

B) $23,000.

Explanation:

ABC's accumulated net income (or retained earnings) over the past four years = $8,000 + $5,000 + $12,000 + $10,000 = $35,000

ABC's accumulated dividends paid over the past four years = $3,000 x 4 = $12,000

Since dividends are paid using money that proceeds from retained earnings, the balance of the retained earnings account = accumulated retained earnings - accumulated dividends = $35,000 - $12,000 = $23,000

4 0
3 years ago
Which of the following is a pair of events which are mutually exclusive?
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Answer:

C. Sleeping in late and waking up early.

Explanation:

Two or more events are said to be mutually exclusive if and only if they can't happen at the same time.

Going with the above brief analysis, we.can easily say which of the pair of events is not mutually exclusive.

1. Rolling a 4 on a six-sided die and on a four-sided die

It's 100% possible to have an outcome of 4 when a 4 sided die and when a 6 sided die are rolled, whether at the same time or on different occasions. So, this pair of events are not mutually exclusive

2. Making rice and making corn

This pair of events are not mutually exclusive because it's possible to make rice and corn at the same time either together as a meal or separately using different cooking utensils

3. Sleeping in late and waking up early

This pair of events are mutually exclusive. This is so because literally, it's not possible to sleep late and wake up early at the same time.

You sleep early to wake early and you sleep late to wake late.

4. Going to work and riding the bus.

This pair of events are not mutually exclusive because they can occur at the same time when you go to work a bus.

So, option C is the correct answer

4 0
3 years ago
Which of the following BEST describes the process of appointing a federal judge?
suter [353]

Answer:

C

Explanation:

The president appoints a nominee to a judgeship, and then the Senate confirms the nominee.

4 0
2 years ago
Read 2 more answers
3. The Johnson Company will pay an annual dividend of $2.05 next year. The company has increased its dividend by 3.5% a year for
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Answer:

A share of this stock be worth$ 21.88 four years from now

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Amount of annual dividend that will be paid the next year = $ 2.05

increase in dividend by 3.5% = \frac{100+3.5}{100} = increase by a factor of 1.035

Since there is a 14% return, overall increase in dividend = \frac{1.035}{0.14 - 0.035} = 9.857

<em>Note:</em>

<em>0.035 was obtained from </em>\frac{3.5}{100}<em>= 0.035 (dividend increase)</em>

<em>0.14 was obtained from </em>\frac{1.4}{100}<em> = 0.14 (percentage return required)</em>

over the next 20 years his new value of dividend will be

New value of dividend = $2.05 + 9.857 = 11.907

Converting to a percentage,

\frac{100+11.907}{100}= 1.1907

Net dividend increase =

Dividend returns minus increase in dividend for 20 years is given as

14% - 3.5% = 10.5%

From the above, the

Worth of a share of his stock 4 years from now can be computed by

(dividend X Percentage increase in 20 years)/ net percent dividend increase  + (increase in 4 years/ net dividend increase) X 100

\frac{(2.05 (1.1907))  }{10.5} + \frac{(2.2729)}{10.5} × 100  =$21.88

∴ A share of this stock be worth$ 21.88 four years from now

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3 years ago
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Bess [88]

Answer:

r = 0.235 or 23.5%

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The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

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r = 0.06 + 2.5 * 0.07

r = 0.235 or 23.5%

3 0
3 years ago
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