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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.

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Which of the following are markets in which money is lent for periods longer than<br> one year?
kifflom [539]

Answer:

capital market

Explanation:

6 0
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Department 1 completed and transferred out 450 units and had ending work in process inventory of 60 units. The ending inventory
sergeinik [125]

Answer:

The equivalent units of production for materials is 570.

Explanation:

Equivalent units measures the number of units completed to the extend of in puts introduced to the outputs.

<u>Calculation of equivalent units of production for materials.</u>

Units completed and transferred (450 × 100%)       450

Units in ending work in process ( 60 × 20 %)             12

Total equivalent units of production for materials   570

Conclusion :

The equivalent units of production for materials is 570.

8 0
3 years ago
When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites.
I am Lyosha [343]

Solution:

Common stock: These are the common shares that a company issues to creditors to raise funds. In return, creditors are entitled to a dividend share of the profits received by the firm.

Par value: It refers to the worth of a share suggested by the charter of the company. Often referred to as a portfolio face value.

Record the sale of common stock in the books of ANIT Corporation.  

Date     Account Titles and Explanation    Debit (S)     Credit (S)

                        Cash (1)                             101,595,000

                 Common Stock (2)                                          7500

   Paid-in Capital in Excess of Par value (3)               101,587,500

(To record safe of .5 million shores of $0.001 par value per share in excess of Par)  

Compute the amount of cash received from common stock issue.  

Cash received = Number of shares issued x Price per share

                        = 7.500,000 shares x $13.546

                        =$101,595,000  

Compute common stock value.  

Common H= 'Number of shares v Par value of common stock stock value  

                  = 7,500,000 shares x SO 001 per share

                  = $7,500  

Compute paid-in capital in excess of par value.  

Paid-in capital in = I (Cash received—excess of par value Common stock value

                           =$101,595.000(1) — S7,5001.2)

                           = $101,587,500  

3 0
3 years ago
You find that the bid and ask prices for a stock are $14.25 and $15.45, respectively. If you purchase or sell the stock, you mus
Nezavi [6.7K]

Answer:

$180

Explanation:

The bid price of a stock is $14.25

The ask-price of a stock is $15.45

A flat commission of $30 must be paid in the stock

100 shares of stock are bought

Therefore, the total implied and actual transaction costs can be calculated as follows

= Commission+(ask price-bid price)×number of shares

= 30×2+($15.45-$14.25)×100

= 60+ 1.2×100

= 60+120

= $180

Hence the total implied and actual transaction cost is $180

6 0
3 years ago
To be considered a "free enterprise" economy, an economy must have free markets and what else?
lapo4ka [179]

Free markets and <u>Capitalism </u>(private ownership, voluntary exchange, etc)

7 0
3 years ago
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