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SCORPION-xisa [38]
3 years ago
6

Alex Guadet of Nashville, Tennessee, has been renting a two-bedroom house for several years. He pays $900 per month in rent for

the home and $300 per year in property and liability insurance. The owner of the house wants to sell it, and Alex is considering making an offer. The owner wants $160,000 for the property, but Alex thinks he could get the house for $150,000 and use his $25,000 in 3 percent certificates of deposit that are ready to mature for the down payment. Alex has talked to his banker and could get a 5 percent mortgage loan for 25 years to finance the remainder of the purchase price. The banker advised Alex that he would reduce his debt principal by $1,700 during the first year of the loan. Property taxes on the house are $1,400 per year. Alex estimates that he would need to upgrade his property and liability insurance to $1,200 per year and would incur about $3,000 in costs the first year for maintenance and improvements. Property values are increasing at about 3 percent per year in the neighborhood. Alex will have to pay $50 a month for private mortgage insurance. He is in the 25 percent marginal tax bracket.
(a) Use Table 9-4 on page 285 to calculate the monthly mortgage payment for the mortgage loan that Alex would need.

(b) How much interest would Alex pay during the first year of the loan?

(c) Use the Run the Numbers worksheet, "Should You Buy or Rent?" on page 264 to determine whether Alex would be better off buying or renting.
Business
1 answer:
gogolik [260]3 years ago
4 0

Answer:

A - C + D = B

Explanation:

im big brain

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Which of the following formulas is used to compute the accounting rate of return?
tekilochka [14]

Answer:

Option (A) is correct.

Explanation:

Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:

Accounting rate of return = (Average Income ÷ Initial Investment)

For example:

Net profit for 3 years are as follows:

2012 - 13 = $50 million

2013-14 = $100 million

2014-15 = $150 million

Initial investment = $200

Average profit = ($50 + $100 + $150) ÷ 3

                        = $100

Accounting rate of return = (Average Income ÷ Initial Investment)

                                          = $100 ÷ $200

                                          = 0.5 or 50%

5 0
3 years ago
According to the Portland Business Journal, Jim Houser, a Portland auto specialist, landed a key Small Business Administration a
mario62 [17]

Answer:

reconciliate balance $ 22,388,675‬

Explanation:

bank statement:                18,835

deposits in transit           100,740

                                 22,376,200

outstanding check

  10189                            (56,710)

  10192                            (15,365)

  10193                           (22,650)

  10194                            (12,375)

Adjusted balance:  22,388,675‬

checkbook balance: 22,385,105

      interest earned           4,020

      ATM card fees              (450)

  Adjusted balance:  22,388,675

Notes: For each statement we adjust for the unknown information.

The bank is unaware of the outstanding check and the deposit in transit.  So we adjust for these concepts.

The company has no knowledge of the ffes and interest earned until receiving the bank statement so we must adjust for that amount.

7 0
2 years ago
What is the organisation for supermarket.!
AURORKA [14]
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6 0
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What factor supports maintaining a dual income?
mart [117]
You should open a joint bank account. Joint allows deposit or withdraw cash from your dual income. Can share with your family members. Income is safe with you having a joint account because you can monitor transaction.
3 0
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To reduce the risk of starting a small business, the government can
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The government can require licenses in order to start the small business. This keeps the small business accountable and the government and keep track of this.
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