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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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Despite Alisa’s request for a 7% wage increase for workers with seniority, Katherine flat out rejects the request and cites the
inysia [295]

Answer:

Legitimate power.

Explanation:

Legitimate power is one that a person hold as a result of their position in an organisation.

They formally hold a position if authority that enables them exercise such power.

For example in the community the police has the authority to arrest law offenders.

This type of authority tends to be on official matters that have a set guideline.

In the given scenario Katherine rejects Alisa’s request for a 7% wage increase for workers with seniority and cites the fact that the company has a salary freeze for all employees.

The freeze is an official guideline in place within the organisation, and Katherine is enforcing it.

8 0
3 years ago
The country of Micronesia is currently experiencing a recessionary gap. The size of the recessionary gap is $500 billion. If the
anastassius [24]

Answer:

The appropriate solution is "100 billion".

Explanation:

The given values are:

Recessionary gap (Total change),

= $500

Marginal propensity consume (MPC),

= 0.8

Now,

Multiplier will be:

= \frac{1}{1-MPC}

On putting the value of MPC, we get

= \frac{1}{1-0.8}

= 5

As we know,

⇒ Total \ change=Government \ spending's \ increase\times Multiplier

⇒ Government \ spending's \ increase=\frac{Total \ change}{Multiplier}

On substituting the values, we get

⇒                                                       =\frac{500}{5}

⇒                                                       =100 \ billion

8 0
3 years ago
Two reasons why people are hesitant to report corruption
melamori03 [73]
<span>Corruption is stealing of funds that are not supposedly owned by the stealer. In most cases, it mostly happening in institutions and organizations. People are hesitant to report corruption because (1) they would be ‘silenced’ (killed) by the person they are trying to expose or (2) they are part of the dirty job.</span>
3 0
3 years ago
Tom Yuppy, a wealthy investor, paid $20,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corp. A month later,
Sliva [168]

Answer:

See the attached excel file for the horizontal statements model.

Explanation:

In the attached excel file, we have:

FA = Financing activity

For event 1:

Cash = $20,000

Common stock = Number of shares * Share price at par = 1,000 * $10 = $10,000

PIC in Excess = Paid in capital in excess = Cash - Common stock = $20,000 - $10,000 = $10,000

For event 2:

Cash = Number of shares issued * Price per share = 2,000 * $2.50 = $50,000

Common stock = Number of shares * Share price at par = 2,000 * $10 = $20,000

PIC in Excess = Cash - Common stock = $50,000 - $20,000 = $30,000

Download xlsx
3 0
3 years ago
I need this done by today
tankabanditka [31]
What is the problem
4 0
3 years ago
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