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zmey [24]
3 years ago
7

You have a mortgage balance of $117,000 that will require you to make 120 more payments of $1,200 , starting next month. Alterna

tively, you can take out a loan today for $117,000 with an interest rate of 3% APR compounded monthly and pay off the original mortgage. The new loan will require you to make 120 more payments, starting next month. If your investments earn 2.00% APR, compounded monthly, how much will you save in PV terms by taking out the new loan to pay off the original mortgage?
Business
1 answer:
SashulF [63]3 years ago
3 0

Answer:

In PV term, we are saving 7,633.33 dollars

Explanation:

First, we calculate the PTm of the bank loan:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $117,000.00

time   120 months

monthly - rate  0.0025 (0.03 annual rate /12 months)

117000 \div \frac{1-(1+0.0025)^{-120} }{0.0025} = C\\

C  $ 1,129.761

1,200 - 1,129.76 = 70.24

Each month we are saving 70.24 dollars

if this yield 2% we cancalcualte the present value of the savings:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C $70

time 120

rate 0.001666667 (0.02/12)

70.24 \times \frac{1-(1+0.0016667)^{-120} }{0.0016667} = PV\\

PV $7,633.6663

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Below is the complete question:

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Answer:

Majority

Explanation:

The reality is that with such a strong field, it is going to be difficult to gain the MAJORITY of votes necessary to avoid a runoff unless you want to go negative from the start.

8 0
3 years ago
Who lowered interest rates on government bonds in order to create a fund to pay an annual sum to the survivors of the emigres wh
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Answer:

Charles X

Explanation:

Charles X was a king of France between 1824 and 1830 and for the greater part of his life was known as the Count of Artois. During his reign as king, Charles X, whose full name is Charles Phillipe, lowered interest bonds to create funds to pay survivors of the emigres who forfeited their lands. He also restores primogeniture(the right of succession of the throne by first borns). He also enacted the law of death or imprisonment for sacrilege in his support of the Roman Catholic Church.

Cheers.

5 0
3 years ago
Amy and mike are going to an amusement park. they each bought ice cream, and mike got a soda. amy. y had a $10 coupon to put tow
N76 [4]

We have that

Cost total-------------------------$10 coupon+$30.25=$40.25

<span>ice cream costs                        $1.50*2</span>= -$3

<span>admission cost                        $18*2</span>= -$36

<span>soda cost                                   $X*1</span>= -$X

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$X= $ 1.25

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3 years ago
Read 2 more answers
The book gives a clear knowledge of marketing at both the strategic and conceptual level as well as the ____.
jasenka [17]

Answer:

The book gives a clear knowledge of marketing at both the strategic and conceptual level as well as the ____.

tactical, hands-on level

Explanation:

At the highest level of marketing management is the strategic level, which is more conceptual.  Down the scale is the tactical marketing plan, which specifies the marketing tools and techniques which a company will use to meet its marketing goals.   At this level, the tactical tools in use include advertising, sales promotions, and other activities that directly implement the strategic marketing plan.  The tactical level reduces the business strategic goals to marketing objectives.

3 0
3 years ago
Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and
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Answer:

a. $2,020 Favorable

Explanation:

The computation of spending variance for direct materials in April is shown below:-

For computing the spending variance for direct materials in April first we need to find out the actual price per unit which is here below:-

Actual price per unit = Actual direct material ÷ Actual units purchased

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which is closest to $2,020 Favorable.

3 0
3 years ago
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