1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bad White [126]
3 years ago
5

The mortgage on your house is five years old. It required monthly payments of $1,450​, had an original term of 30​ years, and ha

d an interest rate of 9% ​(APR). In the intervening five​ years, interest rates have fallen and so you have decided to refinancelong dash that ​is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a​ 30-year term, requires monthly​ payments, and has an interest rate of 6.625% ​(APR).
a. What monthly repayments will be required with the new​loan?
b. If you still want to pay off the mortgage in 25​ years, what monthly payment should you make after you​ refinance?
c. Suppose you are willing to continue making monthly payments of $1,450 . How long will it take you to pay off the mortgage after​ refinancing?
d. Suppose you are willing to continue making monthly payments of $1,450 and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the​refinancing?
Business
1 answer:
valentina_108 [34]3 years ago
5 0

Answer:

Explanation:

Payments (P) =1450

n = 30years; 30*12 months

APR(c) = 9%; 0.09/12 monthly = 0.0075

L - loan

P = L[c(1 + c)^n]/[(1 + c)^n - 1]

1450 = L[0.0075(1+0.0075)^360]/[(1+0.0075)^360 -1]

L = 180208.7

Balance loan

B = L[(1 + c)^n - (1 + c)p]/[(1 + c)^n - 1]

= 180208.7[(1+0.0075)^360 -(1+0.0075)1450]/[(1+0.0075)^360 -1]

= 172784.35

a. Monthly payments required on the new loan

APR = 6.625%; 0.00552 monthly

=172784.35* [0.00552*(1+0.00552)^360]/[(1+0.00552)^360 -1] = 1106.36

b.  n = 25years; 300 months

P =172784.35* [0.00552(1+0.00552)^300]/[(1+0.00552)300 -1] = 1180.18

c.

1450 = 172784.35[0.0075(1+0.0075)^(n*12)]/[(1+0.0075)^(n*12) -1]

n = 16.23 years

d.

1450 =L[0.0075(1+0.0075)^300]/[(1+0.0075)^300 -1]  

L = 212286.65

Additional cash = 212286.65 - 172784.35 = 39502.3

You might be interested in
A drag racer is speeding down the track at 150 m/s. At the finish line it deploys its parachute and applies the brakes to slow d
valentina_108 [34]

Answer:

Acceleration, a = 28m/s²

Explanation:

Given the following data;

Initial velocity, u= 150m/s

Final velocity, v = 10m/s

Time, t = 5secs

To find the acceleration;

Acceleration, a = (v-u)/t

Substituting into the equation, we have;

Acceleration, a = (150-10)/5

Acceleration, a = 140/5

Acceleration, a = 28m/s²

Therefore, the acceleration of the drag racer is 28m/s².

8 0
3 years ago
James borrows $300,000 for a home from Bank A. Bank A resells the right to collect on that loan to Bank B. Bank B securitizes th
sattari [20]

Answer:

D) AIG

Explanation:

We went back in time to 2008 and we are in the middle of the subprime mortgage crisis. This is an example of how mortgage backed securities and collateralized debt obligations worked.

The problem with this scenario is that in order for every company involved to be able to make a profit, the mortgages' interest rates skyrocketed which made it harder for families to pay back their loans. This eventually made the families lose their houses and that was the end to the housing bubble and the whole economy collapsed.

6 0
3 years ago
Which of the following is the type of logical database model that treats data as if they were stored in two-dimensional tables?
Luden [163]

Answer: (C) Relational DBMS

Explanation:

 The relational database management system (DBMS) is specifically designed for the purpose of relational databases by using the concept database management system.

 The relational database is basically refers to the DBMS which store the data or information in the form of structured format by using various columns and rows.

The relational DBMS makes more easy to access the values which is more specific in the database management system.

Therefore, the relational DBMS is one of the type of logical database system that basically treats the data in the form of dimensional table

4 0
3 years ago
Read 2 more answers
A concrete block making company is developing an aggregate capacity plan from the following sales forecast for its 6” and 8” con
prohojiy [21]
We need to see that table pls send a picture to it also if u may pls mark me braliest
7 0
3 years ago
Has any questions or problems.
bearhunter [10]

Answer:

Customer relationship management (CRM).

Explanation:

CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, these employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving marketing communications, sales support, technical assistance and customer service so as to bring satisfaction to the customers.

Hence, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.

5 0
2 years ago
Other questions:
  • n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping
    5·1 answer
  • Reeves Incorporated is issuing a note payable to four individuals for $5,000 each. Which individual will end up paying the MOST
    12·1 answer
  • With respect to the consumer price index, the substitution bias arises because:
    12·1 answer
  • A restaurant supply store is trying to determine how many boxes of a certain commonly used item to order. They estimate that tha
    8·1 answer
  • Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer c
    13·1 answer
  • Tanner-UNF Corporation acquired as an investment $260 million of 5% bonds, dated July 1, on July 1, 2021. Company management is
    15·1 answer
  • 1. Becoming aware of your _______ is important in knowing yourself. They define who you are, shape your _____________ and ______
    13·1 answer
  • When using the gross method, the journal entry to record taking a discount when paying for goods previously purchased on account
    13·1 answer
  • I am making marketing plan for a company can anyone help me in making swot analysis
    11·1 answer
  • nformation for firm abc inventory at the beginning of april 2008: 200 units expected demand during april 2008: 50 units producti
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!