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Svetlanka [38]
3 years ago
8

You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of

6.35 percent for this 420-month loan. However, you can afford monthly payments of only $1,800, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Balloon payment $
Business
1 answer:
grin007 [14]3 years ago
8 0

Answer: $338712.36

Explanation:

Given the following :

APR = 6.35% = 0.0635

Monthly payment = $1800

Cost of home = $340,000

Period (t) = 420

Monthly rate = 0.0635 / 12

Amount paid on loan = PV of monthly payment :

PMT(1 - (1 / (1 + r)^t)) / r

1800[(1 - (1 / (1 + 0.0635/12)^420)) / r]

1800[ (1 - (1 /9.1764488)) / r

1800[ 1 - 0.1089746] / (0.0635 / 12)

1800 [168.38275]

= $303088.95

Hence, amount yet to pay :

$340,000 - $303088.95 = $36911.05

Hence, balloon payment :

36911.05( 1 + r)^t

36911.05(1 + 0.0635/12)^420

36911.05(1 + 0.0052916)^420

36911.05(1.0052916)^420

36911.05 × 9.1764488

= $338712.36

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A decentralized organizational structure is predicated on a belief that A. decision-making authority should be put in the hands
Rzqust [24]

Answer:

A. decision-making authority should be put in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise good judgment.

Explanation:

A decentralized organization can be defined as one whose decision-making process is not only in the hands of top management, that is, in this type of decision making, employees of lower hierarchical levels also participate in essential company decisions, therefore the alternative best suited to the beliefs of a decentralized organizational structure is that decision-making authority should be placed in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise common sense.

Some factors that contribute to this type of structure are the organizational culture, the work environment, the organizational strategy, etc.

Some of the advantages of decentralization are the reduction of time for an important decision and the engagement of the team of employees to assist in the decision-making process, which consists of greater motivation and job satisfaction

8 0
3 years ago
Quantitative research is most likely to be used when_________.A. the objective is to identify new ideas and thoughts for a produ
mixas84 [53]

Answer:

D. the objective is to validate relationships and test hypotheses

Explanation:

In order to test hypothesis, a branch of statistics called "inferential statistics" is needed, and statistics, as it is well known, is a branch of mathematics (of applied mathematics).

Therefore, if you want to test an hypothesis and validate a relationship, you need to run a statistical study, and that study has to be fed with quantitative data.

5 0
3 years ago
Merchandise is ordered on november 10; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed b
kifflom [539]

Answer:

The answer is <u>"November 13".</u>

Explanation:

November 13 is the date from which credit period begins in the given scenario because credit period refers to the no. of days that a client is permitted to hold up or wait before paying a receipt or an invoice. It does not refer to the number of days that the client takes to pay an invoice.

6 0
3 years ago
Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

4 0
3 years ago
You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $13,000
nexus9112 [7]

Answer:

Computation of contribution to retirement fund  

Annual payment that the investor wants to receive after retirement = 13000

Number of years after retirement  = 15

Interest rate = 0.11

Value of the fund at 12th year (Use Present Value Formula)  = -93,481.30

Years remaining to retirement = 10

Interest rate = 0.09

Annual contribution upto retirement (Use PMT Formula) = -14,566.27

3 0
3 years ago
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