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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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Answer:

does not need a required rate to calculate

is the rate at which npv is zero

Explanation:

Internal rate of return is an example of capital budgeting method

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.

Projects with the IRR greater than the discount rate should be accepted. It means that it is profitable.

Projects with more than one negative cash flow are unsuitable for calculating with IRR. This is because it can lead to multiple IRR, Thus, it not suitable for analysing all investment scenarios.

The net present value is the most preferred capital budgeting method

Other capital budgeting methods includes

1. profitability index = 1 + (NPV / Initial investment)

2. Accounting rate of return = Average net income / Average book value

3. Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

4. Net present value is the present value of after-tax cash flows from an investment less the amount invested.

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2 years ago

What do some unethical job candidates do to alter their employment dates? List how many weeks instead of months that they worked

vaieri [72.5K]

Answer:Extend dates of employment to cover up periods of unemployment.

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Most Unethical candidates will go as far as extending their employment history to cover up for periods of unemployment,just for the selfish gains of getting employed.

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3 years ago

Information managers are responsible for getting products from producers to consumers.

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False I believe! Hope this was correct for you..

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3 years ago

In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on:

Scilla [17]

In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on: labor demand alone.

<h3>What is wages model?</h3>

Wages model is a model that stated that wages which a worker or an employee earn is based on the workforce or the amount of money available to pay the workers.

In a situation were will have wage that is above the market-clearing wage this tend to mean that the level of employment will depends on labor demand only.

Therefore the level of employment depends on: labor demand alone.

Learn more about wages model here:brainly.com/question/1622389

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2 years ago

Healthy Snacks has a target capital structure of 60 percent common stock, 3 percent preferred stock, and 37 percent debt. Its co

Ivenika [448]

Answer:

WACC = 12.45%

Explanation:

WACC= cost of equity * weight + cost of pref. equity * weight + cost of debt * weight * (1 - T)

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3 years ago