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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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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the

Eduardwww [97]

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Split-off point:

The split-off point is the point at which products from the joint process appear and are identified. The costs which are incurred up to the split-off point are called joint costs and the costs that are incurred after the split-off point are called as

Separable costs. Some joint products which emerge from joint process can be sold at the split-off point or some products can be put to further processing.

Compute the profit or loss from the three products as shown below'

Description A B C

Selling price after further processing 20 13 32

Selling price at the split off point 16 8 25

Incremental revenue per pound or gallon 4 5 7

Total quarterly output in pounds or gallons $15,000 $20,000 $4,000

Total incremental revenue $60,000 $100,000 $28,000

Total incremental processing costs $63,000 $80,000 $36,000

Total incremental profit or (loss) ($3,000) $20,000 ($8,000)

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4 years ago

On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $119 million. The bonds mature

Tamiku [17]

Answer:

Price of the bond is $104,236,860.

Explanation:

Given:

Coupon rate is 6% or 0.06

Face value = $119,000,000

Coupon payment each year = 0.06×119,000,000

= $7,140,000

Yield to maturity = 7% or 0.007

Maturity period = 30 years

Price of bond = Present value of face value + present value of coupon payment (annuity)

Price of bond = $119,000,000_{(PV\ 30,0.07)} + 7,140,000_{(PVA\ 30,0.07)}$

PV of $1 for 7%,30 periods = 0.1314

PVA of $1 for 7%,30 periods = 12.409

Substitute the values in above formula:

Price of bond = (119,000,000 × 0.1314) + (7,140,000 × 12.409)

= 15,636,600 + 88,600,260

= $104,236,860

There will be slight difference in final answer as present value table is used. Excel spreadsheet gives an accurate answer.

So, price of bond is $104,236,860

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3 years ago