If the current interest rate is 5% and your semi-annual coupon paying bond has a duration of 5.33 years, how much will the price
1 answer:
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Answer:
cash will you have from the sale once you pay off the mortgage is $ 510194.55
Explanation:
given data
sold your house = $1000000
time t = 30 year = 360 month
initial balance P = $750,000
mortgage currently exactly = 18½ years = 138 months
interest rate r = 7.75 % = 0.646% per month
solution
we get here monthly loan payment that is
C = P ÷ ...............1
Putting values in formula we get
C = 750,000 ÷
C = $5374.12
so monthly payment is $5374.12
and here Balance after 18.5 year will be
Balance after 18.5 year = $5374.12 × ×
Balance after 18.5 year = $489805.45
and
we received here $1000,000 excess cash received is
cash received = 1000,000 - 489805.45
cash received = $ 510194.55
Answer:
--- FIFO
-- LIFO
Explanation:
Solving (a):
FIFO method
This means that the first items to be listed were sold out and only 240 of the last item is left
This implies that the following units were sold
340 units at $5; 440 units at $7 and (540 - 240) units at $8
So: We're left with
Solving (b):
LIFO method
This means that the last items to be listed were sold out and only 240 of the fist item is left
This implies that the following units were sold
540 units at $8; 440 units at $7 and (340 - 240) units at $5
So: We're left with