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]
3 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]3 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
Escents, a body lotion manufacturer from Canada, negotiated a contract with a shea butter company in Mali, Africa, to supply 40%
Svetlanka [38]

Answer: Infrastructure Challenge.

Explanation:

A major problem in developing countries is insufficient and often damaged infrastructure. There are lack of roads and other mean of access to quite some areas in the country and those routes that do have road networks sometimes see trade still hampered by damage to those road networks.

Sometimes there would be potholes that require careful maneuvering and sometimes the roads would be washed out. In this case Escents is experiencing Dela due to washed-out roads or faulty bridges which are examples of infrastructural damage.

3 0
3 years ago
Bharti Airtel is the largest cellular provider in India, with more than 300 million customers as of 2014. It also supplies broad
12345 [234]

Answer:

An opportunity.

Explanation:

Businesses conduct a SWOT analysis when they want to identify their internal weaknesses and strengths, it is also used to identify external opportunity and threats.

Firms use the analysis to develop a competitive strategy in the market by taking advantage of opportunities presented while mitigating risk posed by threats in the industry.

In this scenario Hutchinson Essar obtained a 5.6% stake in Airtel fr Vodafone. This transaction resulted in movement of knowledge and technology previously available to Airtel to one of its competitors.

This was an opportunity for Hutchinson Essar.

7 0
3 years ago
Read 2 more answers
The Turkish authors of this article are interested in understanding if the _____________ marketing strategies of multinational f
wolverine [178]

Hİ!

I'M İLAYDA.

I'M TURKISH.

<h3> THE TURKISH AUTHORS:</h3>
  • Orhan Pamuk>>Orhan Cotton
  • Elif Şafak
  • Yaşar Kemal
  • Ahmet Hamdi Tanpınar
  • Ömer Seyfettin
  • Muzaffer İzgü
  • Halide Edip Adıvar

3 0
3 years ago
Which sentence contains an error?
Marta_Voda [28]

a, since twenty-seven should say 27 or twenty seven without a dash

7 0
2 years ago
Read 2 more answers
he Allowance for Doubtful Accounts T-account will have the ______ on the credit side. Multiple choice question. sales on account
lukranit [14]

The Allowance for Doubtful Accounts T-account will have the write-offs of specific customers sales discounts and allowances on the credit side.

<h3>What is Doubtful Accounts?</h3>

It lowers the value of an asset—in this case, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset."

The allowance, also known as a bad debt reserve, is management's projection of the amount of accounts receivable that customers will not pay.

Thus, option B is correct.

For more details about Doubtful Accounts, click here:

brainly.com/question/14301375

#SPJ1

8 0
1 year ago
Other questions:
  • Define the 8 steps in the engineering design process
    11·2 answers
  • If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there
    13·1 answer
  • In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several ch
    6·1 answer
  • Matthew is a divisional manager at Venus Inc. and reports to the CEO of the company. The CEO delegates resources and authority t
    10·1 answer
  • What is the primary reason for using career clusters
    13·1 answer
  • The accounts receivable credit column of the cash receipts journal is
    6·1 answer
  • Why is efficiency and innovation important to a society
    5·1 answer
  • The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on Ju
    8·2 answers
  • One problem with government operation of monopolies is that?
    15·1 answer
  • Loyal customers and proprietary bread both fall within which part of the swot analysis?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!