You've decided to buy a house that is valued at $1 million. You have $150,000 to use as a down payment on the house, and you tak
e out a mortgage for the rest. Your bank has approved your mortgage for the balance amount of $850,000 and is offering you a standard 30-year mortgage with 8% fixed nominal interest rate (called the annual percentage rate, or APR). According to this proposal, what will be your monthly mortgage payment?
a. $6,237.
b. $8,420.
c. $9,667.
d. $7,796
a. $6,237.
b. $8,420.
c. $9,667.
d. $7,796
1 answer:
Answer:
a. $6,237.
Explanation:
We use the PMT formula i.e shown in the attachment below:
Data provided in the question
Present value = $850,000
Future value = $0
Rate of interest = 8% ÷ 12 months = 0.66666%
NPER = 30 years × 12 months = 360 months
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly mortgage payment is $6,237
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Answer:
Explanation:
Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smoothly manner.
There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.
The outstanding deposits is computed below:
= Company cash receipts - bank deposited
= $74,640 - $71,375
= $3,265
And, the outstanding checks is computed below:
= Company written checks - Processed by bank
= $72,515 - $71,270
= $1,245
The preparation of the bank reconciliation statement on October 31, 2015 for Damon Company's is presented in the spreadsheet. Kindly find the attachment below:
