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]
2 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]2 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
On January 1, Year 1, Greenfield, Inc. issues $100,000 of 9% bonds maturing in 10 years when the market rate of interest is 8%.
ELEN [110]

Answer:

When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%

Explanation:

Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).

Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.

r(semi-annual)=[1+r(annual)]^{\frac{1}{2} } -1

So, everything should look like this.

r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923

Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%

Best of luck.

8 0
3 years ago
If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is _____
goldenfox [79]

The real interest rate is simply nominal interest rate less the inflation rate. In equation form this is equivalent to:

Real interest rate = Nominal rate – Inflation Rate

Real interest rate = 9% - 4%

Real interest rate = 5%

<span> </span>

7 0
2 years ago
An organization that collects and distributes money to candidates is known as a(n)_______.
MA_775_DIABLO [31]

Answer:

political action committee

Explanation:

A political action committee is an organization set up by a political party to gather funds through the contribution and donation from members of the party. The funds collected by the political action committee are used to support the party candidate or campaign against the opposition party candidate. The political action committee is not obligated by law to disclose the identities of donors.

5 0
3 years ago
The flatter the demand curve through a given point, the a. closer the price elasticity of demand will be to the slope of the cur
jonny [76]
Cube c. Is ur answer I did this not long ago it’s very easy try and learn it.
6 0
3 years ago
An economy consists of three workers, Larry, Moe, and Curly. Each works ten hours a day and can produce two services: mowing law
pantera1 [17]

Answer:

Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. Then lawns will be mowed and cars will be washed

Explanation:

In a hour :

Larry can ; wash 1 car or mow 1 lawn

Moe can ; mow 1 lawn or wash 2 cars

Curly can ; mow 2 lawns or wash 1 car

The inefficient scenario is  Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. Then lawns will be mowed and cars will be washed. this is because Larry can either wash 1 car or mow 1 lawn every hour and if Moe only washes cars and Curly only mows Lawns there will still be Cars and Lawns left to be washed and Mowed since Larry does not work at full capacity like Moe and Curly who could wash 2 cars or mow 2 lawns every hour

7 0
3 years ago
Other questions:
  • The generic value chain consists of​ ________ activities and four support activities.
    8·1 answer
  • What are the five main columns of a journal?
    9·1 answer
  • When the cost of the cpi market basket increases from one year to the next we know that?
    5·1 answer
  • What is the total cost for an item that costs $140.00 and has a sales tax rate of 7.5%?
    15·1 answer
  • Preparing T-accounts (ledger) and a trial balance LO P2 Following are the transactions of a new company called Pose-for-Pics.
    6·1 answer
  • How would a reduction in the temperature from 80 degrees to 50 degrees affect one’s decision to go swimming?
    13·1 answer
  • Who handles investigations of federal crimes
    9·2 answers
  • JVL Enterprises has set a target profit of $126,000. The company sells a single product for $50 per unit. Variable costs are $15
    14·1 answer
  • COST OF PRODUCTION (5 pts each for a total of 25 pts) a. What is the relationship between the marginal cost of production and av
    8·1 answer
  • Nakawé, LLC produces and sells greeting cards in a competitive market. The total cost of producing 1000
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!