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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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Suppose in 1992, the average price level in Pacifica was 100, and that in Atlantica it was also 100. In the foreign exchange mar

wolverine [178]

Answer:

a. 1 Pound/1.29 or 0.78 Pound/Mark

b. Overvalued

Explanation:

a. What should the pound-mark exchange rate be in 2012?

Ratio of Pacifica pound to Atlantica mark in 2012 = 360/280 = 1.29

Or,

Ratio of Atlantica mark to Pacifica pound in 2012 = 280/360 = 0.78

Therefore, according to the relative purchasing power parity (PPP) theory, one Pacifica pound should equal to 1.29 Atlantica mark, i.e. 1 Pound/1.29 Mark.

This can also be stated differently that 1 Atlantica mark should equal to 0.78 Pacifica pound, i.e. 0.78 Pound/Mark.

b. If the actual pound per mark exchange rate is 0.5 pound/mark in 2012, is the mark overvalued or undervalued relative to its PPP value

Since the PPP pound per mark exchange rate value estimated in a above is 0.78 Pound/ Mark is higher than the actual pound per mark exchange rate of 0.5 pound/mark in 2012, mark is therefore overvalued.

8 0

2 years ago

Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $210,000 and accumulated deprecia

dezoksy [38]

Answer: Gain of $12,000

Explanation:

First off, what was the Net book value of the old sailboat?

= Cost Price - Accumulated Depreciation

= 210,000 - 84,000

= $126,000

They paid $101,000 in cash and received a trade in allowance of $138,000 bringing the value to $239,000.

What they should have received as the trade in allowance was the NBV of $126,000. Since they didn't they got a gain of,

= 138,000 - 126,000

= $12,000

Because this transaction has commercial substance, the gain would be $12,000.

6 0

2 years ago

A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receip

sineoko [7]

A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold goes the tenant have holdover tenancy

A holdover tenant is a tenant who continues to occupy a rental after the lease has ended. The holdover tenant can continue to occupy the property legally if the landlord accepts rent payments; the length of the holdover renter's new rental term is determined by state legislation and court decisions. The tenant is seen to be trespassing if the landlord refuses to accept any additional rent payments, and if they do not leave right away, an eviction may be required.

A holdover tenant is one who keeps making rent payments after the lease has ended. To avoid starting eviction procedures, the landlord must also concur.
In a murky space between a full rental agreement and trespassing, holdover tenancy exists. All parties are better protected by even a one-sentence agreement, thus it should be taken into consideration.
The month-to-month rental clause that is found in the majority of lease agreements frequently eliminates this problem.

Learn more about holdover tenancy here

brainly.com/question/14501662

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6 0

11 months ago

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $95 per share for months, and you believe

miv72 [106K]

Answer:

The price of 3 months call option on stock is 8.03.

Explanation:

Acording to the details we have the following:

P = Price of 3-months put option is $6

So = Current price is $95

X = Exrecise price is $95

r = Risk free interest rate is 9%

T = Time is 3 months=1/4

C=Price of call option?

Hence, to calculate what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $95 if it is at the money, we have to use the formula from put-call parity.

C=P+So- X

(1+r)∧T

C=$6+$95- ( $95 )

(1+0.09)∧1/4

C=$6+$95-$92.97

C=8.03

The price of 3 months call option on stock is 8.03

5 0

2 years ago

The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years,

Lorico [155]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Initial investment= $270,000

Cash flow= $60,000

Number of years= 5

Discount rate= 12%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

∑[Cf/(1+i)^n]:

Cf1= 60,000/1.12= 53,571.43

Cf2= 60,000/1.12^2= 47,831.63

.....

Cf5= 60,000/1.12^5= 34,045.61

∑[Cf/(1+i)^n]= 216,286.57

Now, the NPV:

NPV= -270,000 + 216,286.57

NPV= -53,713.43

5 0

2 years ago