1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
leonid [27]
3 years ago
15

Caleb purchased his first home for $420,000. He made a 10% down payment and financed the remaining purchase price. The terms of

the loan were as follows: 30 year loan Payments made monthly Interest charged at 9% convertible monthly In which month is the first payment for which the principal component is greater than half of the payment?
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

In 269th Payment the principal component is greater than half of the payment

Explanation:

Amortization schedule is attached please find it.

The loan payment includes the interest and principal portion. After deducting the interest on the due balance the residual amount is paid towards the principal.  

Loan is paid per month, the amount of each payment can be calculated as follow:

Loan Payment per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 9% per year = 0.75% per month

n = number months = 30 years x 12 months per year = 360 Months

PV =  present value of all payments = $420,000

P = payment per month = ?

P = 0.75% ( $420,000 x 90% ) / 1 - ( 1 + 0.75% )^-360

P = $3,041.47 per month

Download xlsx
You might be interested in
Table 1 contains information about a small business for one month. The business
8090 [49]

Answer:

workings. Number of units sold: 240. Fixed costs: £1 100. Variable costs per unit: 45 pence. (2) ... You are advised to show your workings. (2). (Total for question = 2 marks). Q6 ... Table 1 contains information about a small business for one month. ... Using the information in Table 1, calculate the profit for this business. You ...

Explanation:

7 0
3 years ago
Read 2 more answers
AutoZone and O'Reilly are two competitors in the retail automotive parts industry.
sineoko [7]

Answer:

Gross Profit Margin: 53 % and 54%

Inventory days outstanding: 249 days and 252 days.

Explanation:

Gross Profit Margin = Gross Profit / Sales * 100

Gross profit = Sales - Cost of Goods Sold

Gross Profit :

Year 1 : 10,498,448 - 4,860,309 = 5,638,139

Year 2 : 8,277,782 - 3,804,031 = 4,473,751

GP margin :

Year 1 = 53%

Year 2 = 54%

Days of inventory :  Average inventory / Cost of Sales * 365 days

Year 1 : 3,320,864 / 4,860,309  * 365 = 249 days

Year 2 : 2,632,898 / 3,804,031 *365 = 252 days

7 0
3 years ago
If the signaling theory of education is correct;
Snezhnost [94]

Answer:

C. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.

Explanation:

The <em>signalling theory in education</em> tells us that employees send "signals" to their employees regarding their education. In other words, employers are willing to pay higher wages to employees with additional years of formal schooling.

This means these qualified workers have their wage primarily defined by their education level, which does not always reflect their true skill-set (the output of ability and effort).

5 0
2 years ago
Cyclical unemployment is BEST described as unemployment arising from
Ira Lisetskai [31]

Answer:

Contraction cycle or Recession

Explanation:

The cyclical unemployment is due to the cycles of economy ( expantion:Grow and contraction: recession) Under these circumstances unemployment is considered normal as the economy cannot sustain itself always in an expansion cycle.

3 0
3 years ago
Which statement is not correct about the business-society interdependence?
Dmitry_Shevchenko [17]

Answer:

D. Actions by governments rarely significantly affect business

Explanation:

Business-socciety interdependence points out how business activities impact society and how society impacts business decisions. Government actions play a significant role in business performance. For example, an increase in interest rate increases the cost of borrowing and acts as an investment disncentive. Likewise, an increase in corporation tax stifles the incentive to invest and reduces corporate profit. Other government interventions such as standards and regulations, minumum wage legislations, permits and licenses would not only reduce business profits but could make doing business very cumbersome. Also, the extent to which the government is committed to maintaining political stability could determine the extent to which invesmtent thrives in an economy.

6 0
3 years ago
Other questions:
  • Mark's department has hired a marketing manager to help increase the sale of the company’s products. However, he believes that t
    13·1 answer
  • If the expected sales volume for the current period is 25,000 units, the desired ending inventory is 700 units, and the beginnin
    13·1 answer
  • At the end of WWII, the US took charge to reshape Japan’s government and economy. The Allies punished Japan for its past militar
    7·1 answer
  • Choose two occupations one that pays high wages and one that pays low wages. explain the reasons of the differences
    10·1 answer
  • The ________ type of recruitment strategy uses physical and/or psychological pressure on potential members and threatens that ei
    7·1 answer
  • Suppose the market price is $5. The buyer who buys the first unit of output has a willingness-to-buy equal to $10; the buyer who
    7·1 answer
  • Knowledge about how the world works that is used to produce goods and services is: Please choose the correct answer from the fol
    13·1 answer
  • LO 1.3 Jason and Mary are married taxpayers in 2018. They are both under age 65 and in good health. For 2018 they have a total o
    12·1 answer
  • Who is responsible for following label instructions for using animal care products, or medications in the food supply continuum?
    5·1 answer
  • Peyton earns $1,700 every other week, but only brings home $1,100 due to deductions, what is Peyton’s gross pay?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!