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aivan3 [116]
3 years ago
14

A homebuyer wishes to finance the purchase with a $95,000 mortgage with a 20-year term. What is the maximum interest rate the bu

yer can afford if the monthly payment is not to exceed $900?
Business
1 answer:
galina1969 [7]3 years ago
5 0

Answer:

0.811% per month is the amximum rate it can affor

or 9.732% annual rate with monhly compounding.

Explanation:

We have to solve for the rate at which the monthly payment equals 900 dollars.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 900.00

time 240

rate r

PV $95,000.0000

900 \times \frac{1-(1+r)^{-240} }{r} = 95,000\\

Given the complexity of the formula we solve using excel or a financial calcualtor

we write on a1 =PV(A2;240;95000)

on a2 we write any number between 0 and 1

then we use goal seek tool adn define that we want A1 to be 95,000 by changing A2 (which is the argument for rate)

the value of A2 after this is our answer:

900 \times \frac{1-(1+0.00811)^{-240} }{0.00811} = PV\\

PV $95,000.0000

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It requires a fixed level premium payment and the from that amount the money is allocated for different reasons according to the wish of the policy holder and the remaining amount is deposited as the cash value amount

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The 2017 Form 10-K of Oracle Corporation, for the May 31, 2017 year-end, included the following information relating to their al
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Answer:

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3 years ago
Ciara is taking AP Biology and her twin brother, Elon, is in regular Biology. At the end of the year, Ciara earned a B and Elon
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A firm is considering expanding its current operations and has estimated the internal rate of return on that expansion to be 12.
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3 years ago
he support manager at Universal Containers wants a dashboard that shows the number of cases that remain open as of 5:00 p.m. eac
erma4kov [3.2K]

Answer:

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Since the support manager needs a dashboard in the given situation that reflects the number of cases that stay open at 5:00 p.m every day at Universal Containers and in this case, every day at Universal Containers, he likes to work on a reporting snapshot running daily at 5:00 p.m. because it shows the real-time status or we may say that the current status is really required.

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