Answer:
b. Do not install the guard rail because the costs exceed the benefits
Explanation:
The cost of the guard rail is $70,000.
The average damage to a car that slides off the road at the curve is $10,000.
Number of cars the guard rail is expected to save from sliding off the road is 5.
Therefore, Total damage prevented/saved is 5 * $10,000= $50,000
Total cost of installing the guard rail is $70,000
So, the cost exceed the benefits.
It is expected the county will not install the guard rail because the total cost outweighs the benefits.
The agency that ensures no harmful ingredients or materials are in toys is the EPA.
Answer:
The borrower pay $150,000 for a property and still qualify for this loan amount
Explanation:
Data provided in the question:
The amount that the homebuyer can afford to borrow = $120,000
Loan to value ration required by the lender = 80% = 0.80
Now,
( Loan amount ) ÷ ( Value of the property ) = loan-to-value ratio
Thus,
$120,000 ÷ ( Value of the property ) = 0.80
or
Value of the property = $120,000 ÷ 0.80
or
Value of the property = $150,000
Hence,
The borrower pay $150,000 for a property and still qualify for this loan amount
Answer:
d. You will have to make 316 payments of $1,291.08 each, pay $1,000 at the end of first 26 years and make a 317th payment of $1,190.26.
Explanation:
The house is bought for $275,000 and 10% down payment is made. The down payment amounts $27,500. The amount after down payment will be $247,500 paid in monthly installments which is financed by 30 year term bank loan. The bank loan interest is compounded monthly so there will be 316 payments of $1,291.08. The last payment is 317th payment amounting 1,194.97.
Answer:
She should pay $22,113 for this investment
Explanation:
A fix payment for a specified period of time and compounding on specified rate is called annuity. $5,000 per year payment for seven years is also an annuity and its today value can be determined by following formula
Present value of Annuity = P [ 1 - ( ( 1 + r )^-n ) / r ]
P = Payments = $5,000
r = required rate of return = 13%
n = Number of years = 7
Present value of Annuity = $5,000 x [ 1 - ( ( 1 + 13% )^-7 ) / 13% ]
Present value of Annuity = $5,000 x [ 1 - ( ( 1 + 0.13 )^-7 ) / 0.13 ]
Present value of Annuity = $5,000 x [ 1 - ( ( 1.13 )^-7 ) / 0.13 ]
Present value of Annuity = $5,000 x 4.42261
Present value of Annuity = $22,113
