Answer:
a. Assuming that fixed payments are to be made monthly for three years and that the loan is fully amortizing, what will be the monthly payments? What will be the loan balance after three years?
- monthly payment = $997.95
- principal balance after 36th payment = $145,090.59
b. What would new payments be beginning in year 4 if the interest rate fell to 6 percent and the loan continued to be fully amortizing?
- monthly payment = $905.34
c. In (a) what would monthly payments be during year 1 if they were interest only? What would payments be beginning in year 4 if interest rates fell to 6 percent and the loan became fully amortizing?
a. $875
b. $935.98
Explanation:
A 3/1 adjustable rate mortgage is a 30 year mortgage where the interest rate is fixed for the first 3 years, and then it can vary.
I prepared an amortization schedule that shows the first 3 payments with a 7% interest rate and then the rest of the payments will carry a 6% interest rate.
The monthly payment for the first 36 months is $997.95 (principal balance after 36th payment $145,090.59), then it decreases to $905.34 per month.
See amortization schedule 1
if the monthly payments only covered interest expenses during the first 3 years, they would be $150,000 x 7%/12 = $875
then the monthly payments would be $935.98.
See amortization schedule 2
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It tells us the economies "health", it represents the total dollar value of good and services over a period of time
<span>Tonya running an ad in the local newspaper that if her customer's come in on a specific day to have a muffin at a discounted value would be considered and offer. Tonya is offering her product at a cost that is less than normal value, allowing her product to be tasted by more people in the hopes of procuring more customers in the process.</span>
The answer is Perform market
Answer: Kaizen
Explanation: In simple words, Kaizen refers to the method of production in which the organisation focuses on increasing the production and reducing the waste that may occur during the process.
The objective of using such method is to gain sustained improvement in the processes and increasing efficiency in the operation continuously for a specified period of time.
This method is also termed as rapid improvement process as it requires organisation to make drastic changes in their processes.
