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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

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For each of the following items, decide whether it is a natural resource (N), human resource (H), or capital good (C). In the sp
Vaselesa [24]

Answer:

Natural resource - Land

Human resource - Labour

Capital good - Machine

Explanation:

An example of a natural resource is land, an example of human resource is labour, while an example of capital good is machine.

As industries continue to grow, the population in will continue to grow as well, either through increased migration or higher birth rate resulting from better economic fortunes. This population increase in population will put pressure on available resources of land, labour and machine. This will in turn cause a reduction in the rate of industrial expansion and growth, thereby slowing down economic activities. To respond to this, industries will have to make backward movement into the outskirts, where there is abundance in supply of factors of production (land, labour and machine).

8 0
3 years ago
In the idea screening stage, companies assess new offerings by determining _________.
Naddika [18.5K]

Answer:

b. if the product fits with the image and corporate strategy

Explanation:

New companies suffer from flood of ideas that may go into the evolution of a new product for it. How to screen them so that most suitable idea may be evolved is called the idea screening.  This process reduces the no of irrelevant ideas leading to most relevant one so that product most suitable to their corporate strategy can be selected.

8 0
3 years ago
Bonita Industries received $108000 in cash and a used computer with a fair value of $384000 from Carla Vista Co. for Bonita Indu
Svetradugi [14.3K]

Answer:

$30,300 and $384,000

Explanation:

The computation of the gain and the amount should acquired is shown below;

The gain is

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= $492,000 - $461,700

= $30,300

And, the amount at which the computed should be recorded is equivalent to the fair value i..e $384,000

The same is considered and relevant

6 0
3 years ago
Hanson Aquatics manufactures navigational equipment. As a new Hanson employee, Lyndon Kiely was told that even if he decides not
nataly862011 [7]

If he must pay the dues. Hanson has a(n) <u>agency </u>shop.

<h3>What is agency shop?</h3>

An agency shop  can be defined as a shop in which the employer may decide to recruit a person that is member of the union or a person that is not part of the union.

In this agency shop it is not mandatory for an employee which not member of the union to join the union but the employee must always pay the dues.


Therefore  Hanson has a(n) <u>agency </u>shop.

Learn more about agency shop here:brainly.com/question/1285850

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7 0
2 years ago
Teddy's Pillows had beginning net fixed assets of $471 and ending net fixed assets of $550. Assets valued at $319 were sold duri
photoshop1234 [79]

Answer:

Net Capital Spending = $121

Explanation:

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∴ Net Capital Spending = $121

3 0
3 years ago
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