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svet-max [94.6K]
2 years ago
7

Suppose someone borrows $552,000 today to buy a house in Davis, CA. If the annual interest rate is 4%, with monthly compounding,

what should be the fair value monthly mortgage payment?
Business
1 answer:
galina1969 [7]2 years ago
4 0

Answer:

Monthly Repayment on Loan  = $2634.06

Explanation:

given data

principal =  $552,000

annual interest rate = 4% = 0.333% monthly

solution

for get here fair value monthly mortgage payment we consider here time period is 30 year = 360 months

so now we apply here Monthly Repayment on Loan formula that is

Monthly Repayment on Loan  = principal ×  \frac{r(1+r)^t}{(1+r)^t -1}    .................1

put here value and we get

Monthly Repayment on Loan  = 552000 × \frac{r(1+0.333)^{360}}{(1+0.333)^{360} -1}    

Monthly Repayment on Loan  = $2634.06

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Answer:

The correct answer is Interpersonal.

Explanation:

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Del is buying a $250,000 home. He has been approved for a 5.75% mortgage. He was required to make a 15% down payment and will be
alukav5142 [94]

Answer:

Del is expected to prepaid to pay $535.62 in prepaid interest at the closing.

Explanation:

The down payment of 15% is $250000*15%=$37500

The balance of mortgage net of down payment=$250000-$37500

                                                                               =$212500

Interest yearly=$212500*5.75%=$12,218.75

A year interest divided by 365days give one day interest.

A day interest=$12218.75/365=$33.48

Total interest  to pay at closing=16days*$33.48

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The number of days was 16 because July has 31days and deal was closed on 15th,hence 31 minus 15 gives 16.

4 0
3 years ago
If the money supply is $6,000, velocity is 5, and Real GDP is 10,000 units of output, then the price level is _____________. If
atroni [7]

Answer and Explanation:

The computation is shown below:

The Price level in the normal case

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When the money supply doubles, the price level is also doubled that indicated the direct relationship between the price level and money supply

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3 years ago
The cost to produce tooth paste has increased by 1000%. This has caused the price to quadruple, but the demand has remained the
erica [24]

Answer:

Inelastic

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