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
LekaFEV [45]
3 years ago
9

A partially amortizing mortgage is made for $60,000 for a term of 10 years. The borrower and lender agree that a balance of $20,

000 will remain and be repaid as a lump sum at that time. a. If the interest rate is 7 percent, what must monthly payments be over the 10-year period
Business
1 answer:
GarryVolchara [31]3 years ago
4 0

Answer:

The monthly payments will be $464.44

Explanation:

in this problem we are given the present value of the annuity or house which is $60000 - $20000 = $40000 we subtract because the $20000 will be paid as a lumpsum. this will be denoted by Pv.

we are given the period n for this mortgage repayment which is 10 years but its stated that this individual will pay monthly so the period of payments n is 10 x 12 =120 payments will be done.

the interest rate is also given as 7%which is not adjusted over the periodic payments so i is 7%/12 thereafter we find the monthly payments which will be denoted by C in the present value formula :

Pv = C[(1-(1+i)^-n)/i] then we substitute the above mentioned values

$40000=C[(1-(1+(7%/12))^-120)/(7%/12)] then we divide both sides by the value that multiplies C to solve for C the monthly payments.

$40000/[(1-(1+(7%/12))^-120)/(7%/12)] = C, then compute on calculator.

therefore C the montly payments is $464.44

we use the present value annuity as it is a series of periodic payments in the futer for a value given now.

You might be interested in
Employee involvement and participation (eip) management is a method of management where ________.
Grace [21]
It's a method where <span>subordinates share a significant degree of decision-making power with their immediate superiors
One positive benefit of the employee involvement and participation is that companies will prepare more employees to understand the company's operational method and make more potential leaders for the company if it choose to expand in the future</span>
6 0
3 years ago
Please hellllpppppp x.x
liberstina [14]

1.) Job responsibilities

2.) D

3.)A

4.)B

5.)D

Hope this helps you out some!! :)

5 0
3 years ago
A good way to show your boss that you are dependable is to _____. a. arrive early b. arrive with snacks c. arrive late d. arrive
myrzilka [38]
A. Arrive early.

Explanation:

Dependable: Trustworthy and reliable.

B. Arriving with snacks doesn’t get you anywhere.

C. Arriving late isn’t even up for debate.

D. A day off is a day off for a reason, go home pal.
3 0
3 years ago
Read 2 more answers
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. it invites proposals from independent dealers who
uysha [10]
<span>This is most likely an example of a franchise opportunity. It could also be considered to be a hybrid type of franchise where the indepenent dealers have more leeway in how the business looks and how it is run. This would be a win/win for many independent dealers as the would still be making most of the local decisions.</span>
6 0
3 years ago
Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000. The effect of this transaction on
Sedbober [7]

Answer: $10,000 increase in Treasury Stock

Explanation:

Treasury stock, is also known refered to as the treasury shares and it occurs when stock is bought buy the issuing company back from the stockholders.

This results in the reduction in the total number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will bring about a $10,000 increase in the treasury stock.

3 0
2 years ago
Other questions:
  • Suppose the spouse of the primary earner in the household is considering joining the labor force. The spouse currently cares for
    11·1 answer
  • Mr. Stone's students have been completely engrossed in a physics experiment.At the end of the experiment, all of his students sc
    8·2 answers
  • Price comparison involves which of the following?
    7·2 answers
  • The best time to acquire technological literacy is before you have to apply for a job because ________.
    6·2 answers
  • Many organizations are adapting to the environment by developing more of a(n) _____ relationship rather than a(n) _____ relation
    8·1 answer
  • Elisa ran 34 miles more than Darryl last week. Elisa ran 49 miles. How many miles did Darryl run?
    15·2 answers
  • Mini-CaseSparky Weyer, president and CEO of Minimotors, Inc., a growing manufacturer of small (some of them downright tiny) elec
    10·1 answer
  • A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen
    10·1 answer
  • 4. would protect the composer's musical score.
    14·2 answers
  • HW2: ABC Co. acquired the $100,000, 6% bonds on 2001/12/31. Market price of the bonds: $102,723 (including brokerage fee of $153
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!