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3 years ago

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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Sales of blank______ began to increase in the early 1970s as many cigarette smokers apparently began to look for alternatives th

antiseptic1488 [7]

(.) Smokeless tobacco products.

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4 0

1 year ago

Consider the population consisting of all computers of a certain brand and model, and focus on whether a computer needs service

Dvinal [7]

Answer:

Based on selecting a sample of 300 computers The probability questions are follows

1. . What is the probability that no computer needs service within the warranty period?

2 . What is the probability that more than half of the computers that are sampled will need warranty period?

3. What is the expected number of computers fail before the warranty period?

7 0

3 years ago

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger bo

tamaranim1 [39]

Answer:

Silver Enterprises Post Merger Balance Sheet

Current Assets 12,920 Current liabilities 10,460

Other Asset 4,480 Long-term debt 19,770

Net Fixed Asset 24,810 Equity 17,450

Goodwill <u>5,470 </u> <u> </u>

Explanation:

Current assets = 10,000 + 2,920 = 12,920

Other assets = 3,100 + 1,380 = 4,480

Current liabilities = 7,840 + 2,620 = 10,460

Net fixed assets = 17,300 + 7,510= 24,810

Long-term debt = 5,110 + 14,660 = 19,770

Equity = $17,450

8 0

3 years ago

Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 perce

Dimas [21]

Answer:

Machine A; because it will save the company about $13,406 a year

Explanation:

The computation is shown below:

Equate Annual Cost = PV of Cash Outflow ÷ PVAF (r%, n)

For Machine A:

Year CF PVF at 14.6% Disc CF

0 $3,18,000.00 1.0000 $3,18,000.00

1 $ 8,700.00 0.8726 $7,591.62

2 $8,700.00 0.7614 $6,624.45

3 $ 8,700.00 0.6644 $ 5,780.50

PV of Cash Outflow $3,37,996.58

PVAF(14.6%,3) 2.2985

PV of Cash Outflow $1,47,053.69

For Machine B:

Year CF PVF at 14.6% Disc CF

0 $2,47,000.00 1.0000 $2,47,000.00

1 $9,300.00 0.8726 $8,115.18

2 $9,300.00 0.7614 $7,081.31

PV of Cash Outflow $2,62,196.49

PVAF(14.6%,2) 1.6340

PV of Cash Outflow $1,60,459.86

So the machine cost would be purchased as it lower the cost by $13,406.17

5 0

2 years ago

The Law of Demand states that:

Rufina [12.5K]

Answer:

Explanation:

hope it helps to your question

5 0

3 years ago

Read 2 more answers