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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

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ABO purchased a truck at the beginning of 2018 for
valentina_108 [34]

Answer:

B. Debit Loss $5,000.

Explanation:

depreciation per year under straigh-line method:

\frac{cost- salvage}{useful \: life}

\frac{140,000 - 20,000}{6}

depreciation per year: 20,000

book value at 2019 year-end:

140,000 - 20,000 x 2 = 100,000

disposal value:                95,000

loss for                               5,000

loss at diposal:                      5,000  debit

cash                                      95,000 debit

accumulated depreciation  40,000 debit

                truck                                       140,000 credit

3 0
4 years ago
Which of the following is an example of traditional management?
arsen [322]
Not sure what the choices are, but traditional management is where goals and objectives are created at the top and employees are in charge of meeting them and for the quality of the product. This is opposed to a quality - focused management style which is more collaborative with customers to achieve continuous improvement of your product and/or service.
3 0
3 years ago
Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the informa
Elena-2011 [213]

Answer:

The project to accept is:

e. E

Explanation:

a) Data and Calculations:

Cost of capital = 10%

Mutually Exclusive Projects:

                            A       B        C        E

Payback (years)   1        5        2        5

IRR                    18%   20%    20%    12%

NPV (Millions) $40    $75    $35   $100

b) Project E should be preferred over all the other projects.  It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital.  It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.

8 0
3 years ago
A ticket to an Eric Clapton concert costs $45. If you have a ticket, you can "scalp" it (sell it illegally) for $75. To a ticket
Delvig [45]
Opportunity cost is what you give up to do something

if you go to the concert, you spent $45 dollars but lose the opportunity to sell the ticket

if you sell the ticket illegally, you get $75 at the cost of not seeing the concert


the opportunity cost of attending the concert=75+45=$120
the opportunity cost is 120 dollars
7 0
3 years ago
You are trying to listen to instructions your boss is giving you about a new method for keeping expense accounts. But you find i
alexandr402 [8]

Answer:

Psychological barrier

Explanation:

The type of barrier that you are experiencing is psychological. Psychological barriers result when your personal values are not aligned with the message being received, be it by cultural or ethical values or even by preconceived thoughts. In this situation, since you do not agree with the task at hand of changing the method for keeping the accounts, you find it difficult to focus on the task.

5 0
3 years ago
Read 2 more answers
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