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goblinko [34]
3 years ago
9

Rob Grier, a friend of yours, has recently purchased a home for $125,000, paying $25,000 down and the remainder financed by a 10

.5%, 20-year mortgage, payable at $998.38 per month. At the end of the first month, Rob receives a statement from the bank indicating that only $123.38 of principal was paid during the month. At this rate, he calculates that it will take over 67 years to pay off the mortgage. Is he right?
Business
1 answer:
KonstantinChe [14]3 years ago
7 0

Answer:

No

Explanation:

Rob is considering their principal payment will be 123.38 everytime.

<u>It will increase through time while interest payment decrease.</u>

Month  Beg Cuota Rate Interest Principal payment Ending

1 100,000 998.38 0.00875 875                 123.38 99,877

2 99,877 999.38 0.00875 873.92           125.46 99,751

3 99,751 1000.38 0.00875 872.82          127.56 99,624

4 99,624 1001.38 0.00875 871.77          129.67 99,494

5 99,494 1002.38 0.00875 870.57           131.81 99,362

6 99,362 1003.38 0.00875 869.42           133.96 99,228

<u>The cuota and rate keep at the same level.</u>

But the interest decrease, because each time the principal is lower, giving place to a higher repayment.

The loan will repay at 20 year as state in the mortgage

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3 years ago
Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During
dimulka [17.4K]

Answer:

paid in capital in excess of par value = $2000

and There will be a debit to Organisation expenses for $4,700

Explanation:

given data

charter authorized = 100,000 shares

common stock = $10 par value

issued  = 270 shares      

payment = $4,700        

solution

we know here that

Paid up value of the stock = $10 per share

and here shares issue to the attorney satisfying the organisation expenses is 270 shares

so common stock = 270 shares × $10

common stock =  $2700

so paid in capital in excess of par value = $2000

and There will be a debit to Organisation expenses for $4,700

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3 years ago
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4 0
2 years ago
Your restaurant has assets of $64,342 and liabilities of $47,266. What is the equity of your business?
Alborosie

Answer:

Equity of the business= $17,076.

Explanation:

Equity as used in business is used to refer to the difference between the worth of a business (its assets) and what the business owes (debts and liabilities).

In other words, total equity refers to the value which is left in the company after the total liabilities must have been subtracted from the total assets.

The formula to calculate total equity is given below:

Equity = Assets - Liabilities

Therefore to calculate the equity above, we have:

Equity = $64,342 - $47,266

Equity = $17,076.

4 0
3 years ago
On March 3, Cobra Inc. purchased a desk for $330 on account. On March 22, Cobra purchased another desk for $460 also on account,
Olin [163]

Answer:

Cobra Inc.

The amount that Cobra should report for desks is $790.

Explanation:

a) Data and Calculations:

Purchases on March 3 =    $330

Purchases on March 22 = $460

Payment on March 24 =   ($460)

Amount unpaid =               $330

b) The amount that Cobra Inc. should report as Accounts Payable at the end of March is $330.  However, in reporting for the desks, it should report $790 in assets.  This amount represents the value of desks that the company is possessing, which is financed by company cash and creditors.

4 0
3 years ago
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