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
jek_recluse [69]
3 years ago
9

You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on

the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000. At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be?
Business
1 answer:
jeyben [28]3 years ago
5 0

Answer:

$63,852

Explanation:

The computation is shown below:

a) PV of payments is

= $23,500 × (1.07^30 - 1) ÷ (0.07 × 1.07^30)

= $2,91,612

b) The Loan PV of payments is $3,00,000

c) And, the Balloon payment required is

= (Borrowed amount - loan PV payments) × (1 + rate of interest)^number of years

= ($300,000 - $291,612) × 1.07^30

= $63,852

You might be interested in
Breton Woods Standards were found to be inadequate mainly because?
vodomira [7]

Answer:

A key reason for Bretton Woods' collapse was the inflationary monetary policy that was inappropriate for the key currency country of the system.

Explanation:

The US decision to suspend gold convertibility ended a key aspect of the Bretton Woods system. The remaining part of the System, the adjustable peg disappeared by March 1973.

3 0
2 years ago
the change from traditional manufacturing to service and high-tech manufacturing requires highly job skills.
valentina_108 [34]

Answer:

Technical

Explanation:

8 0
2 years ago
Importance of the different types of elasticity<br><br>​
WITCHER [35]

Answer:

<em><u>Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. When a product is elastic, a change in price quickly results in a change in the quantity demanded.</u></em><em><u>The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.</u></em>

Explanation:

hope it helped you...mate!

5 0
3 years ago
if i am trying to collect on a debt, can i post requests on social media for information on how to contact the debtor?
Makovka662 [10]

Answer:

i guess you can but don't post any valid information which might expose credit cards or so forth

8 0
2 years ago
​Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of us
Nady [450]

Answer:

core competency

Explanation:

Based on the information provided within the question in regards to the situation at hand it can be said that the iPad was a core competency for Apple. This term refers to the use of a company's resources and skills to create something in order to set it apart and give the company a competitive advantage in a market. Which is exactly what the iPad did for Apple.

If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Other questions:
  • Sheffield Corp. sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has vari
    15·1 answer
  • Classify the assumptions according to whether or not each item is an assumption made under perfect competition (also known as pu
    5·1 answer
  • Suppose conditions arise in the sugar market that would lead to a competitive equilibrium price that is below 18.75 cents per po
    6·1 answer
  • Among the advantages of corporations are the ease of raising financial capital, professional management, and
    5·1 answer
  • Frontier Airlines hedged the cost of jet fuel by purchasing options that allowed the airline to buy fuel at a fixed price for 2
    9·1 answer
  • Fred, a department manager, is attending the monthly budget planning meeting, where all the department managers report on their
    5·1 answer
  • Assume the Residential Division of KappyKappy Faucets had the following results last​ year: Net sales revenue $16,320,000 Operat
    9·1 answer
  • At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $52,300; Liabilities = $21,100; Dividend
    9·1 answer
  • The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and
    15·1 answer
  • Engineering Wonders reports net income of $56.0 million. Included in that number is building depreciation expense of $4.6 millio
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!