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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.

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Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 27,000 units.
harkovskaia [24]

Answer:

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a. Merchandise Purchases Budget for the months of July, August, and September:

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Sales units                210,000        290,000       290,000

Ending inventory       43,500           43,500         27,000

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August        290,000            290,000

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                                     July             August      September      October

Sales units                210,000        290,000       290,000        180,000

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Goods available      253,500         333,500        317,000

Beginning inventory  31,500           43,500         43,500         27,000

Purchases               222,000        290,000       273,500

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