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
Your business has purchased 500 pizza pans, 60 kg of sauce, 100 kg of cheese, 2.5 kg of basil, 2.5 kg of oregano, 5 kg of yeast,
adelina 88 [10]

Answer:

400 pizzas

Explanation:

The complete question would be:

<em>You are going into the business of making pizzas. The following is the list of ingredients to make ONE pizza: </em>

<em>400 g flour           50 mL water </em>

<em>10 g yeast             120 g sauce </em>

<em>250 g cheese       5 g oregano </em>

<em>5 g basil </em>

<em>Your business has purchased 500 pizza pans, 60 kg of sauce, 100 kg of cheese, 2.5 kg of basil, 2.5 kg of oregano, 5 kg of yeast, and 200 kg of flour. You have as much water as you need. How many pizzas can you make? </em>

You are going to have to make a couple of conversions to do this. Since everything you need is indicated in grams, we first need to convert everything you have in grams.

There are 1,000 g in 1 kg. So now we convert them all:

60 kg of sauce

60kg \times \dfrac{1,000g}{1kg} = 60,000g

100 kg of cheese

100kg \times \dfrac{1,000g}{1kg} = 100,000g

2.5 kg of basil

2.5kg \times \dfrac{1,000g}{1kg} = 2,500g

2.5 kg of oregano

2.5kg \times \dfrac{1,000g}{1kg} = 2,500g

5 kg of yeast

5kg \times \dfrac{1,000g}{1kg} = 5,000g

200 kg of flour

200kg \times \dfrac{1,000g}{1kg} = 200,000g

So now that we know what we have, we determine how many pizzas we can make with the amount of each ingredient. We get the ratio of each ingredient to one pizza to determine how many we can make:

<u>Flour:</u>

Available: 200,000g

Needed: 400g

200,000g\ of\ flour\times\dfrac{1\ pizza}{400g\ of\ flour} = 500\ pizzas

<u>Yeast:</u>

Available: 5,000g

Needed: 10g

5,000g\ of\ yeast\times\dfrac{1\ pizza}{10g\ of\ yeast} = 500\ pizzas

<u>Cheese:</u>

Available: 100,000g

Needed: 250g

100,000g\ of\ cheese\times\dfrac{1\ pizza}{250g\ of\ cheese} = 400\ pizzas

<u>Basil:</u>

Available: 2,500g

Needed: 5g

<u />2,500g\ of\ basil\times\dfrac{1\ pizza}{5g\ of\ yeast} = 500\ pizzas<u />

<u>Sauce:</u>

Available: 60,000g

Needed: 120g

<u />60,000g\ of\ sauce\times\dfrac{1\ pizza}{120g\ of\ sauce} = 500\ pizzas<u />

<u>Oregano:</u>

Available: 2,500g

Needed: 5g

<u />2,500g\ of\ oregano\times\dfrac{1\ pizza}{5g\ of\ oregano} = 500\ pizzas<u />

We do not need to consider water, because it will provide as many as we will need.

So here we see that all but one ingredient is able to yield 500 pizzas. Cheese is the only one that yields less than 500, specifically 400 only. This is your limiting ingredient and this ingredient determines how many pizzas you can make. Because when you run out of cheese, you can no longer make a pizza.

4 0
3 years ago
What happens to the equilibrium price when supply goes down? A. The price goes up. B. The price goes down. C. The price stays th
Nady [450]
When supply goes down, the equilibrium price goes up. This is because if there is a smaller supply the good becomes more valuable to people who want the good.
4 0
3 years ago
Which of the following statements about recessions is false?
drek231 [11]
The correct answer is choice D- 

It not true that a <span>recession is usually no longer than six months. A recession van be longer than 6 months (it takes a 6 months fall in real GDP for a recession to occur), but </span>a recession generally<span> does </span>not<span> last </span>longer than<span> a year. Beyond a year, the situation is much severe, and is called an economic depression.</span>
7 0
3 years ago
Read 2 more answers
When will six thousand years of creation be?
goldfiish [28.3K]
Nobody really knows the real answer to this
3 0
3 years ago
Zhang Company reported Cost of goods sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The avera
Lilit [14]

Answer:

Average inventory= $41,750

Explanation:

Giving the following information:

Beginning Inventory= $37,200

Ending Inventory= $46,300

<u>To calculate the average inventory, we need to use the following formula:</u>

Average inventory= (beginning inventory + ending inventory) / 2

Average inventory= (37,200 + 46,300) / 2

Average inventory= $41,750

6 0
3 years ago
Other questions:
  • A photocopier cost $ 102 comma 000 when new and has accumulated depreciation of $ 93 comma 000. If the business discards this pl
    12·1 answer
  • Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show.
    15·1 answer
  • Workers are responsible for the production of goods in a business,
    9·1 answer
  • On April 12, Hong Company agrees to accept a 60-day, 10%, $6,100 note from Indigo Company to extend the due date on an overdue a
    9·1 answer
  • 1) What usually initiates data input into a system? A) The transaction system automatically checks each hour to see if any new d
    13·1 answer
  • Explain why a hair dryer has a high-heat setting with a lower resistance than the low-heat setting
    7·1 answer
  • Which of the following statements is correct?
    14·1 answer
  • in 2001 an outbreak of hoof-and-mouth disease in europe led to the burning of millions of cattle carcasses. discuss the demand a
    11·1 answer
  • On her way to a concert, Hermione stopped at a restaurant for dinner. In her purse, she had 12 bills worth a total of $40. She h
    11·1 answer
  • YO Easy question
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!