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
Kay [80]
3 years ago
7

Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You have arranged to finance the

remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?
$741.57


$780.60


$821.69


$862.77


$905.91
Business
1 answer:
Crazy boy [7]3 years ago
6 0

Answer:

The monthly payment amount would be $821.69

Explanation:

Hi, since you have already paid $15,000 (down payment), the amount of money to be financed is $130,000 ($145,000 - $15,000). Knowing that, we need to solve the following equation for "A".

PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Where:

Present Value = money borrowed (in our case, $130,000)

r = effective interest rate (in our case, 6.5%/12= 0.5417%  or 0.005417)

n = number of periodic payments (in our case, 30*12=360 monthly payments)

Everything should look like this.

130,000=\frac{A((1+0.005417)^{360}-1) }{0.005417(1+0.005417)^{360} }

130,000=A(158.2108195)

Therefore:

A=821.69

So, the monthly payments would be equal to $821.69.

Best of luck.

You might be interested in
Assume that Amazon sells the MacBook Pro, a computer produced by Apple, for a retail price of $1,500. Amazon arranges its operat
tatuchka [14]

Answer: $150

Explanation:

Based on the information given in the question, the journal entry provided will be:

Debit Customer $1500

Credit Account Payable (Apple) $1350

Credit Commission income/Revenue $150

Therefore, the revenue that Amazon will recognize for the sale of one MacBook Pro is $150.

7 0
3 years ago
Solstice Company determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore.
djverab [1.8K]

Answer and Explanation:

The journal entry is shown below:

Bad debts expense Dr $60,000  

        To Accounts receivable $60,000

(Being the written off amount is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the account receivable as it reduced the assets

So for correcting posting and recording we passed accurate entry

4 0
3 years ago
Which part of the business plan is an analysis of your competition and the strategies you will use to earn and maintain a compet
gizmo_the_mogwai [7]

A competitive analysis.

A competitive analysis examines the strengths and weaknesses of your competition in relation you your business.

5 0
3 years ago
A maker of computers has decided to steeply discount all of its HyperDrive models and is considering licensing an overseas manuf
zhannawk [14.2K]

growth of manufacturing

6 0
3 years ago
Read 2 more answers
Workplace diversity describes differences among workers in any of the following areas:
Andreyy89

Answer:salary

All

Explanation:

6 0
2 years ago
Other questions:
  • Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemplo
    12·1 answer
  • Breakeven and leverage wingler communications corporation (wcc) produces premium stereo headphones that sell for $28 80 per set,
    14·1 answer
  • The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Swee
    7·1 answer
  • A regular customer, who is known for being demanding, comes in and asks for his favorite server. unfortunately, that server is n
    10·1 answer
  • On May 7, Juanita Construction provides services on account to Michael Wolfe for $4,000. Michael pays for those services on May
    14·1 answer
  • Monetary neutrality is the idea that money is neutral in the –. it is a means of exchanging, tracking, and storing value, but is
    6·1 answer
  • Addison deposited $1,000 in a savings account at her bank. Her account will earn an annual simple interest rate of 5.8%. If she
    5·1 answer
  • How can an employee keep hot held foods safe from contamination
    5·1 answer
  • Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., pro
    10·1 answer
  • In the week to come, a bank expects $55 million in incoming deposits, $75 million in acceptable loan requests, $35 million in mo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!