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
S_A_V [24]
4 years ago
6

Tim wants to buy an apartment that costs $2,225,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser

rate of 4.875%. The reset margin on the loan is 300 basis points above 1 year CMT. There are no caps. Tim anticipates the index to be 3.50% at the time of the 1st reset. What is Tim’s monthly mortgage payment going to be during the 1st 3 years?
Business
1 answer:
Vika [28.1K]4 years ago
4 0

Answer:

monthly payment = $10,009 (rounded to nearest dollar)

Explanation:

A 3/1 adjustable rate mortgage (ARM) means that the monthly payment will be fixed during the first 3 years only. Then they should vary, although the variance is generally upwards. The monthly interest can be calculated by using the present value of an annuity formula:

monthly payment = present value of the loan / annuity factor

  • present value of the loan = $2,225,000 x 85% = $1,891,250
  • PV annuity factor, 0.40625%, 360 periods = 188.9615

monthly payment = $1,891,250 / 188.9615 = $10,008.65256 ≈ $10,009

You might be interested in
Describe how hrd is linked to the overall goals and strategies of an organization
Yuki888 [10]

Raising standards and productivity, helping firms adapt to change, boosting employee morale and cutting absenteeism, improving the quality of working life, and building a learning culture are just a few benefits of HRD.

Why is HRD essential to achieving company goals?

Because it is an investment in one's employees that will ultimately result in a stronger and more productive workforce, human resources development is important. By supporting employee development, a business strengthens its resources and raises the value of its workforce.

Strategic human resource management is the process of integrating human resources with strategic goals and objectives in order to improve organizational performance and foster an environment that fosters innovation, adaptability, and competitive advantage.

To know more about human resources development

brainly.com/question/10583893

#SPJ4

7 0
1 year ago
In an advertising plan, the ____ is the section in which the client and the agency lay out the key factors that define the curre
antoniya [11.8K]
<span>In an advertising plan, the "situation analysis" is the section in which.........
</span>

An advertising plan refers to an advancement outline that, when taken after, gives the heading to organizations and organizations to support deals, make mindfulness in the market, and draw in with an altogether new client base. An advertising plan will guarantee that your organization's cash will be spent sensibly and will achieve the greater part of the correct target crowds.
5 0
3 years ago
A sporting equipment store expects to purchase $7,800 of ski boots in October. The store had $3,800 of ski boots in merchandise
Maksim231197 [3]

Answer:

Cost of goods sold = $8,800

Explanation:

<em>The cost of goods is represents amount incurred to make available  what has been sold. It is computed as follows:</em>

<em>Cost of goods sold = opening stock + purchases - closing inventory</em>

It is useful to determine the cost of goods so as to calculate the gross profit margin. The gross profit is the sales revenue less cost of goods sold.

So we can compute same for the sporting equipment store as follows:

Cost of goods sold = 3,800 + 7,800 - 2,800

= $8,800

Cost of goods sold = $8,800

5 0
3 years ago
Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed
suter [353]

Answer:

Contribution margin ratio = 1 - variable cost ratio

                                          = 25%

(a) Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

Break\ even\ in\ dollars=\frac{350,000}{0.25}

                                            = 1,400,000

 Break\ even\ in\ units=\frac{Break\ even\ in\ dollars}{sales\ price}

 Break\ even\ in\ units=\frac{1,400,000}{56}

                                           = 25,000

(b) For profit of $42,000,

sales=\frac{Profit+fixed\ cost}{contribution\ margin\ ratio}

sales=\frac{42,000+350,000}{0.25}

               = 1,568,000

In\ units=\frac{sales}{sales\ price}

In\ units=\frac{1,568,000}{56}

                    = 28,000

(c) variable cost = sales price × variable cost ratio

                           = $56 × 75%

                           = $42

New contribution margin = \frac{New\ sales\ price-variable\ cost}{New\ sales\ price}

New contribution margin = \frac{70-42}{70}

                                          = 0.4

                                          = 40%

New\ Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

New\ Break\ even\ in\ dollars=\frac{350,000}{0.4}

                                                        = $875,000

New\ Break\ even\ in\ units=\frac{New\ Break\ even\ in\ dollars}{New\ sales\ price}

New\ Break\ even\ in\ units=\frac{875,000}{70}

                                                    = 12,500

3 0
3 years ago
To maintain good citizenship as a company and to make a fair profit on current operations are examples of _____. values
Radda [10]
Those are examples of values.
Values is a set of standard that held by certain individuals or group that would be a crucial factor in creating their moral codes.
Different companies may held completely different values based on what they want to achieve as their goals and identity.
7 0
3 years ago
Other questions:
  • You have a chance to buy an annuity that pays $2,450 at the beginning of each year for 3 years. You could earn 5.5% on your mone
    15·1 answer
  • The spotlight on small business box "earning while learning" features students who
    14·1 answer
  • The use of debt is called A. financial leverage. B. production leverage. C. operating leverage. D. total asset turnover risk. E.
    11·2 answers
  • A loaf of bread cost $0.18 in 1955 and the CPI was 26.8. The CPI in 2013 was 233.
    14·1 answer
  • Assume France and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning
    5·1 answer
  • Zeibart Company purchases equipment for $225,000 on July 1, 2016, with an estimated useful life of 10 years and expected salvage
    7·1 answer
  • On January 1, 2015, VITO Corporation had 110,000 shares of its $5 par value common stock outstanding. On June 1, the corporation
    14·1 answer
  • What is the surface area of the Ceral box?<br> Hight is 30 width is 20 side width is 5
    6·1 answer
  • The most rigorous test of a firm's ability to pay its short-term obligations is its?
    9·1 answer
  • What's the permanent marker used primarily for marking datums when measuring elevation?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!