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MariettaO [177]
2 years ago
6

A man is purchasing a house for $325,000. His lender requires a 20 percent down payment and 2 points at closing. The man is also

responsible for $2,000 in closing costs. What is the total amount of money he needs to close?
Business
1 answer:
Leviafan [203]2 years ago
7 0

Answer:

$73,500

Explanation:

the man needs enough money to cover:

  • down payment = $325,000 x 20% = $65,000
  • closing points = $325,000 x 2% = $6,500
  • closing costs = $2,000
  • total = $73,500

The closing points are generally paid to the mortgage lender in order to lower the mortgage's interest rate which will result in a lower monthly payment.

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Round 8.35 to the nearest whole number
Lelechka [254]
8.35=8
Any decimal point below 5 is rounded down; above 5 is rounded up
Ex: 10.6=11
Hope this helps!
5 0
3 years ago
Read 2 more answers
Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that
Sergio [31]

Answer:

P0 = $51.9956 rounded off to $52.00

Explanation:

The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.

The formula for price of the stock today under this model is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]

Where,

  • D0 is the dividend today or most recently paid dividend
  • g1 is the initial growth rate which is 20%
  • g2 is the constant growth rate which is 8%
  • r is the required rate of return

P0 = 2.5 * (1+0.2) / (1+0.15)  +  2.5 * (1+0.2)^2 / (1+0.15)^2  +  

2.5 * (1+0.2)^3 / (1+0.15)^3  +

[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)

P0 = $51.9956 rounded off to $52.00

3 0
2 years ago
Which of the following does not influence the consumer when he or she
Diano4ka-milaya [45]
WHATS THE REST OF THE QUESTION ?
5 0
3 years ago
Read 2 more answers
2. What are two measures of inflation?
ddd [48]

Answer:

CPI and WPI

Explanation: Consumer Price Index measures the percentage change in the price of a basket of goods and services consumed by households. Wholesale Price Index is the price of representative of basket of wholesale goods.

8 0
3 years ago
Adidas Corporation bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,600 unit
meriva

Answer:

The cash disbursements for selling and administrative expenses should be $45,520

Explanation:

The selling and administrative (S&A) expenses have two parts: a variable one and a fixed one.

  • The variable part depends on how many units have been sold. So, if the variable S&A expense per unit is $4.1, and 3,600 units are planned to be sold, the total variable S&A expense should be 3,600 * 4.1 = 14,760
  • The fixed part does not depend on the units sold. It remains the same no matter how many units have been sold. Yet, it includes depreciation of $5,100. The depreciation does not represent an exit of money. It isn't part of the cash flow. So, the total fixed S&A expenses should be 35,860 - 5,100 = 30,760
  • Finally, the total S&A expenses should be 14,760 + 30,760 = 45,520
5 0
2 years ago
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