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tensa zangetsu [6.8K]
3 years ago
12

You purchase a $325,000 town home and you pay 25 percent down. You obtain a 30-year fixed-rate mortgage with an annual interest

rate of 5.75 percent. After five years you refinance the mortgage for 25 years at a 5.1 percent annual interest rate. After you refinance, what is the new monthly payment (to the nearest dollar)
Business
1 answer:
Vilka [71]3 years ago
7 0

Answer:New Monthly Payments  = $1613.81

Explanation:

Present Value = $ 325000( 1 -0.25) = 243750

n = 30 x 12 = 360

R = 5.75%/12

Monthly payments (30 year Bond) = rPV/(1 - (1+R)^-n)

Monthly payments (30 year Bond) =(0.0575/12 x 243750)/ (1 - (0.0575/12^-30))

Monthly payments (30 year Bond) = 1167.9687338/ 0.1335983624

Monthly payments (30 year Bond) = 8742.38810013 = 8742.39

Balance of the loan in 5 years

Balance = PV(1+r)^n - P((1+r)^n -1)/r

Balance = 243750(1 + 0.0575)^5 - 8742.39((1 + 0.0575)^5 - 1)/0.0575

Balance = 322363.9769 - 49036.27513 =273327.70177

Balance = 273327.70

New Monthly Payments = (0.0510/12 X 273327.70 )/ (1 - (1 + 0.510/12)^-300)

New Monthly Payments = 1161.642725/ 0.7198130660

New Monthly Payments = 1613.811684 = $1613.81

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A salesperson shows his broker an offer for one of his listings that has a good faith deposit in the form of a promissory note.
12345 [234]

Answer:

The seller must be informed when the offer is presented that the depositis a promissory note

Explanation:

A good faith deposit is one that is done by a buyer in which conditions are stated that could result in the loss of deposit by the buyer.

It is a deposit made by the buyer to show he intends to complete the payment later.

In this instance if there is a Goodwill deposit in form of a promissory note, the broker needs to be aware.

So that when he is bringing in a client he will consider the already existing deposit.

Deals that offer more deposit or full payment will be considered and the original buyer discarded.

8 0
3 years ago
Under an acceptable method of costing by-products, inventory costs of the by- product are based on the portion of the joint prod
saw5 [17]

Answer:

b. plus any subsequent processing cost.

Explanation:

In the case of the acceptable costing method for by-products the inventory cost that are depend upon the joint cost should be distribution to the by-product plus if there is any processing cost

that means

Inventory cost of the bu-product = joint cost + processing cost

Therefore the same should be considered

5 0
3 years ago
LO 2.2Which of the following are prime costs?
sesenic [268]

Answer:

OPTION D: Direct Labor and Direct Material

Explanation:

Prime cost of a product is defined as the direct costs of producing a product including direct material costs and direct labor costs. Any other manufacturing overheads, indirect expenses and indirect materials/labor cost are not included in the calculation of PRIME COSTS .

                 Prime Cost = Direct Material Cost + Direct Labor Cost

Therefore, OPTION D: direct Labor and direct materials is the correct definition of prime costs.

4 0
3 years ago
Cal Lury owes $25,000 now. A lender will carry the debt for four more years at 10 percent interest. That is, in this particular
vitfil [10]

Answer:

$6,185.31

Explanation:

Value of debt at end of 4 years = $25,000 * (1 + 10%)^4

Value of debt at end of 4 years = $25,000 * (1.10^4)

Value of debt at end of 4 years = $25,000 * 1.4641

Value of debt at end of 4 years = $36,602.50

Let x be the annual payments

x * [1 - (1 + 13%)^-12] / 13% = $36,602.50

x * [1 - (1.13)^-12] / 13% = $36,602.50

x * [1 - 0.2307059] / 13% = $36,602.50

x * 0.7692941/0.13 = $36,602.50

x * 5.91764692 = $36,602.50

x = $36,602.50/5.91764692

x = 6185.313266375142

x = $6,185.31

So therefore, his annual payment will be $6,185.31.

4 0
3 years ago
Which two advantages do home buyers have over renters?
Snowcat [4.5K]
Answers A and E seem correct. B makes no sense. C makes no sense. and my renters insurance was very cheap vs property insurance.
5 0
3 years ago
Read 2 more answers
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