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
gayaneshka [121]
3 years ago
12

Frank purchased his house 16 years ago by taking out a 25-year mortgage for $150,000. the mortgage has a fixed interest rate of

5 percent compounded monthly. if he wants to pay off his mortgage today, how much money does he need? he made his most recent mortgage payment earlier today.​

Business
2 answers:
IRINA_888 [86]3 years ago
8 0

Answer: Since Frank made his most recent EMI payment today, Frank needs 76,136.52 in order to pay off his mortgage today.

We follow these steps to arrive at the answer:

We first calculate the EMI on loan taken out:

The EMI is nothing but P (constant amount paid or received periodically) in the Present Value of an Annuity formula. The formula is

\mathbf{PV_{Annuity} = EMI* \left[ \frac{1 - (1+r)^{-n}}{r} \right]}

Substituting the values from the question we get,

150000 = EMI* \left[ \frac{1 - (1+\frac{0.05}{12})^{-(25*12)}}{\frac{0.05}{12}} \right]

Solving we get,

150000 = EMI* \left[\171.06\right]

\frac{150000}{171.060047} = EMI

\mathbf{EMI = 876.8850623}

We then construct the Amortization table attached below. At the end of 16 years or 192 periods (16*12), we can see that the principal outstanding is $76,136.52.



Andrej [43]3 years ago
4 0
The current value of the mortgage will be given by:
A=P(1+r/100)^n
where:
P=$150,000
r=5%
n=16 years
therefore:
A=150000(1+5/100)^16
A=150000(1.05)^16
A=$201,014.35
If He wants to pay off his mortgage now, he needs $201,014.35
You might be interested in
Sponsorship is an effective marketing strategy, particularly for sporting goods and recreational equipment.
Kitty [74]

Answer:true

Explanation: just took the test

5 0
3 years ago
Eric enjoys making pizza. When he makes pizza for his friends, sometimes Eric cares about how the pieces are distributed, and so
sammy [17]

Answer:

equity:

-He cuts the pie into eight equal slices.

-He cuts the pie into many slices so that everyone gets a piece.

Efficiency:

-He lets one person eat the whole pie.

-He makes sure that the whole pie is eaten.

Explanation:

Equity deals with distribution i.e to ensure things are equally distributed

While

Efficiency is trying to make sure things are completely used up i.e act of preventing waste

3 0
3 years ago
A restaurant is a workplace for someone whose career specialty is in
mixer [17]

Answer:

food

Explanation:

3 0
2 years ago
Read 2 more answers
A podcaster has become quite talented at writing and producing content celebrating positive news. The podcaster bought professio
FromTheMoon [43]

create a budget this will help with his economic issues

5 0
2 years ago
Read 2 more answers
According to the FASB conceptual framework, the rele-vance of providing information in financial statements is subject to the co
Liula [17]

Answer:

B. Cost-Benefit

Explanation:

According to the Financial Accounting Standard Board (FASB) framework, it is important to estimate the cost and benefit of information before deciding the relevance of the information. It decides when to disclose and whether to disclose the information

Once, the cost of such information outweighs the benefits of its disclosure then FASB framework terms it as not relevant.

Cost of Information

Financial reporting through the preparation of financial statements has a cost, these costs include provision, preparation as well as the audit of the information provided. The cost-benefit constraint basically intends to ensure that financial statements are most-effectively and most-efficiently prepared.

6 0
3 years ago
Other questions:
  • Compare and contrast the risks and goals of entrepreneurs and inventors.
    6·2 answers
  • On November 19, Nicholson Company receives a $24,600, 60-day, 10% note from a customer as payment on account. What adjusting ent
    6·1 answer
  • On October 1, 2019, Paige Turner Publishing received $60,600 in cash for subscriptions covering one year, recording the entry as
    9·1 answer
  • Selected data from the Florida Fruit Company are presented below: Total assets $1,500,000 Average total assets 1,850,000 Net inc
    5·1 answer
  • Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of
    11·1 answer
  • Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
    5·1 answer
  • Jordan wants to retire in 35 years. She wants to have $75,000 per year in retirement and she expects retirement to last for 35 y
    13·1 answer
  • 17- Dell was one of the first companies to change the customer​ experience, allowing customers to order and configure their own
    6·1 answer
  • A major reason why it is difficult to lower the barriers to free trade is A. the loss of jobs without any gain of jobs from free
    7·1 answer
  • Bobby decides to sell lemonade on a hot summer day. If Bobby sells 25 glasses of lemonade for $5.00 per cup, and his average tot
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!