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AlladinOne [14]
2 years ago
6

You need a 25-year, fixed-rate mortgage to buy a new home for $315,000. Your mortgage bank will lend you the money at an APR of

6.1 percent for this 300-month loan. However, you can afford monthly payments of only $1,550, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,550?
Business
1 answer:
Slav-nsk [51]2 years ago
4 0

Answer:

The answer is $1,441,746.04

Explanation:

Solution

Given that:

The Annual rate = 6.1%

The monthly  interests rate = 6.1%/12 =0.5083%

Monthly payment =$1,550

The time period =  $1,441,746.04300 Months

The amount of payment at the end of 300 months is

=1,550 *((1.005083^300 - 1) / 0.005083

The amount of payment at the end of 300 months is = $1,090,754.66

Thus

Future value of $315,000 = $315,000*1.005083^300

= $1,441,746.04

Now

The balloon payment =  $1,441,746.04 - 1,090,754.66

= $350,991.38

Therefore the largeness of this balloon payment will be $1,441,746.04

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Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing proces
gayaneshka [121]

Answer:

$6,900

Explanation:

When you use the incremental cost allocation method, you must rank cost activities and how they will be allocated. In this case, department 2 is the primary user, and therefore, rental costs must be allocated first to them. Rental costs will be allocated at a $25/hour rate.

Since department 1 is the next user, 100 hours will be allocated using the same rate as department 2, but the next 200 hours will be allocated at the lower $22/hour rate. Total rental cost allocation to department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900

5 0
3 years ago
During 2020, Lincoln Company hires seven individuals who are certified to be members of a qualifying targeted group. Each employ
Montano1993 [528]

Answer:

$16,800

Explanation:

Calculation to determine what Lincoln Company's work opportunity credit is

Work opportunity credit= $6,000 * .40 *7

Work opportunity credit = $16,800

Therefore Lincoln Company's work opportunity credit is $16,800

7 0
2 years ago
1 - At the Montell Company, functions are divided into areas of specialization such as production, marketing, accounting, and fi
Sedbober [7]

At the Montell Company, since the functions are divided into areas of specialization such as production, marketing, accounting, and finance, it reflects Fayol's principle of <u>division of labor. </u>

Max Weber used the term <u>bureaucrats</u> to describe middle managers. Their job is usually to implement the orders that they get from top management.

It should be noted that division of labor is when the roles that'll be performed in an organization are divided into various departments. This is done in order to make the job easier and faster.

Read related link on:

brainly.com/question/25523750

7 0
2 years ago
Gwen is a doctor who is forming her own medical practice. She wants her practice to be flexible, simple to run, and free from re
algol [13]

Answer:

A limited liability company

Explanation:

A limited liability company has characteristics of corporations, partnerships, and sole proprietorships. Like a corporation, the owners have limited liability. Like a partnership and sole proprietorship, profits are taxed once through flow through taxation.

I hope my answer helps you

4 0
3 years ago
Madrid Company plans to issue 9% bonds with a par value of $5,300,000. The company sells $4,770,000 of the bonds at par on Janua
ASHA 777 [7]

Answer and Explanation:

The journal entry are as follows

1. Interest expense $214,650

       To Cash $214,650

(Being the first interest payment is recorded)

The computation is shown below

= $4,770,000 × 9%  × 6 months ÷ 12 months

= $214,650

For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

2. Cash $530,000

      To Bond payable $530,000

(Being the cash sale of bond is recorded)

For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable

5 0
3 years ago
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