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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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Ken owns a food services company and recently negotiated a contract with a new restaurant chain. the satisfaction ken feels for
erastova [34]

Answer:

Ken owns a food services company and recently negotiated a contract with a new restaurant chain. the satisfaction ken feels for this success is a(n)<u> intrinsic  motivator.</u>

Explanation:

Intrinsic motivation can be defined as a kind of positivity in a person which he/she feels by doing any work of their choice. The person is satisfied internally with the work he or she chooses to do. In intrinsic motivation, the person is motivated to do a work that will satisfy himself/herself rather than satisfying any external source.

For example: In the above question, Ken is satisfied because she runs a food service company to make herself happy and she negotiated a contract because she cares to do anything that makes her satisfied rather than any other person.

6 0
3 years ago
In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 370 units at
Andreas93 [3]

Answer:

The cost of the ending inventory under FIFO is $2,430 and under LIFO is  $1,620

Explanation:

First determine the units sold

Units Sold = Total Purchases - Units in hand

                  = 1,410 units - 270 units

                  = 1,140

Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.

FIFO

Means First in First Out

Cost of the ending inventory = 270 x $9.00 = $2,430

LIFO

Means Last in First Out

Cost of the ending inventory = 270 x $6.00 = $1,620

Conclusion

The cost of the ending inventory under FIFO is $2,430 and under LIFO is  $1,620

5 0
3 years ago
You have just completed a $ 24 comma 000 feasibility study for a new coffee shop in some retail space you own. You bought the sp
ikadub [295]

Answer:

$150,300

Explanation:

The computation of the correct initial cash flow is shown below:

= Capital expenditure + net after taxes + initial investment in inventory

= $33,000 + $112,000 + $5,300

= $150,300

The net after taxes is also term as opportunity cost

And, the initial investment in inventory is also term as change in working capital

All other information which is given is not relevant. Hence, ignored it

6 0
4 years ago
The invention of photography was initially important because:
marin [14]

Answer:

D. it helped artists, scientists, and journalists communicate in a new  way.

Explanation:

The invention of photography helped in preserving the images and storing them for the future. Photography helped in the creation of a new medium of communication. The movement led towards the development in the field of history, science, art, and industry. The information can be archived and stored. Also, photography led to the new way of perceiving things from the eyes of the photographer and the journalists. It gave a new outlook to the artists to present their art forms.

4 0
3 years ago
A———— <br> Is a potential situation that a firm is equipped to take advantage of
olasank [31]

Opportunity often comes and it is a potential situation that a firm is equipped to take advantage of.

<h3>What is Opportunity?</h3>

Opportunity are potential that equipped a firm to take advantage of opportunities .

This is related to market, as it helps analyse external opportunities.

Therefore, opportunity often comes and it is a potential situation that a firm is equipped to take advantage.

Learn more on market opportunity here,

<em>brainly.com/question/8493674</em>

8 0
3 years ago
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