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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

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B. $1,015,500 on Marc ; $756,500 for Estella

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Marc has current salary of $110,000 with which he runs the household expenses. If Marc dies then there should be more insurance coverage because he is the only person who earns in the house. Estella is a house wife and insurance coverage for her is lower than Marc because he will still be able to continue his earning.

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In considering ending her relationship with her husband, Marie considers how they might divide up their household goods, and how
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D) investment

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Marie has decided to end her relation with her husband and considering how she can divide the household goods, how the end of the relationship impacts her children. By considering all this point, Marie is thinking about the investment.

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3 years ago
A company purchased equipment valued at $120,000. It traded in old equipment for a $95,000 trade-in allowance and the company pa
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Answer:

$120,000

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Data provided in the question

Purchase value of an equipment = $120,000

Trade in allowance = $95,000

Paid cash = $25,000

Cost of an old equipment = $110,000

Accumulated depreciation = $33,000

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A marketing channel is defined as a group of individuals and organizations that
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Correct/complete Question:

A marketing channel is defined as a group of individuals and organizations that

a. consumes about one-half of every dollar spent on products in the United States.

b. directs the flow of products from producers to customers.

c. links producers to other marketing intermediaries.

d. manages transportation and warehousing functions.

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B, directs the flow of products from producers to customers.

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3 years ago
Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs
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Answer:

A. Dr Materials $18,825

Dr Direct Materials Price Variance $8,575

Cr Accounts Payable $127,400

B. Dr Work in Process $97,000

Cr Direct Materials Quantity Variance $4,850

Cr Material 92,150

Explanation:

Preparation of the journal entries

A. Dr Materials $18,825

(2,450*$48.50 per unit)

Dr Direct Materials Price Variance $8,575

[2,450*($52.00 per unit-$48.50 per unit)]

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Cr Material 92,150

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