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
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

You might be interested in
According to the demand-pull theory, inflation is caused by:
Aliun [14]

Answer:

Understanding Demand-Pull Inflation

Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.

Explanation:

hope it helps you

6 0
2 years ago
You recently sold 100 shares of Microsoft stock to your brother at a family reunion. At the reunion your brother gave you a chec
Hoochie [10]

Answer:

Option E                  

Explanation:

A direct transfer refers to the shift of funds from certain form or section of a tax deferred retirement savings plan to another. Direct payments are not deemed to be statutory dividends, and are therefore not taxed as profits or susceptible to premature payment charges. Now normally this form of transition happens digitally.

In simple terms, cash loans exist when a company sells its shares in return for money specifically to the savers. There is no financial institution involved in this procedure. Small firms typically use direct transfers, so very less money is generated during this phase.

6 0
3 years ago
The pennsylvania turnpike is a tolled freeway running through the state of pennsylvania. motorists must pay tolls at various poi
Masteriza [31]
Public good, even though it is a private held good.
8 0
3 years ago
Silence will operate as acceptance in the following circumstances except:
schepotkina [342]
Silence will operate as acceptance in the following circumstances except when the offeror indicates that silence will operate as acceptance
3 0
3 years ago
Barrett, Inc., has a total debt ratio of .65, total debt of $353,000, and net income of $20,750. What is the company’s return on
zlopas [31]

Answer:You want to ask a date or friend to the school dance. Using the present perfect tense, give your best speech in Spanish, telling what you have or have…not done to perhaps receive a "Yes!" The subject of the sentence does not need to be limited to the first person singular, Yo.

7 0
2 years ago
Other questions:
  • The Coyotes are interested in trading their star safety. He is a veteran and makes $1.2 million per year. They are considering s
    10·1 answer
  • At the end of its first year of operations on December 31, 2020, Carla Vista Company's accounts show the following.
    11·1 answer
  • Thyme, Inc. owns 16,000 of Sage Co.'s 20,000 outstanding common shares. The carrying value of Sage's equity is $500,000. Sage su
    13·1 answer
  • Which ethical standard is based on the notion that life in community yields a positive outcome for the individual, requiring eac
    12·1 answer
  • Daniel, the supervisor of a team of financial analysts, aims to become a manager. He is confident about his ideas in the workpla
    7·1 answer
  • There are hundreds of colleges that serve millions of students each year. the colleges vary by location, size, and educational q
    6·1 answer
  • Exercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a luxury hotel with 160 suites. Its regular suit
    14·1 answer
  • A particular​ country's exports of goods are increasing exponentially. The value of the​ exports, t years after 2007​, can be ap
    8·1 answer
  • I LOVE YOU ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! HOPE U R DOING BEYOND AMAZING REMEMBER TO NEVER CHANGE WHO U R FOR ANYONE OR ANY
    5·2 answers
  • Production would be _____ if there is a low supply for a product.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!