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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

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Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price,
11Alexandr11 [23.1K]

Answer:

A sales.

Explanation:

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.

In this scenario, Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sales.

4 0
2 years ago
A twenty-acre park was created to give residents a place to hike, bike, and enjoy other recreational activities. Kathy was hired
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b

Explanation:

8 0
2 years ago
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16. According to data from the U.S. Department of Energy, sales of the fuel-efficient Toyota Prius hybrid fell from 194,108 vehi
Westkost [7]

Answer:

0.22 and substitutes goods

Explanation:

The computation of the cross-price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 180,603 - 194,108

= -13,505

And, the average of quantity demanded is

= (180,603 + 194,108) ÷ 2

= 187,356

Change in price is

= P2 - P1

= $2.43 - $3.36

= -$0.93

And, the average of price is

= ($2.43 + $3.36) ÷ 2

= 2.895

So, after solving this, the cross - price elasticity is 0.22

Since the cross - price elasticity is positive that reflect the goods are substitutes to each other

4 0
3 years ago
What is down payment with regarding to buying a house?
mart [117]
The down payment is an initial payment made when something is bought on credit. It usually depends on the type of house or any other form of object
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3 years ago
Select the correct point on the graph. Which point on the graph indicates the lowest quantity supplied of goods? 9.00 8.00 Price
disa [49]

Answer:

It would be A

Explanation:

3 0
2 years ago
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