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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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Answer:

(C) $4,650,000 $ 5,250,000

Explanation:

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season construction using percentage of completion method.

Amount of revenue & construction expense for the year ended december 31, 2020 will be

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5 0
4 years ago
1. What's NOT an assumption we usually make about costly products and services?
zloy xaker [14]

Answer:

B

Explanation:

I would assume the correct answer would be B. This is because when you go to a store you typically assume the higher cost item is of higher quality then the lower cost item. For example: One may buy a yeti cooler over an igloo cooler because the very high price tag makes them feel as if the cooler is just that much better then the competitor. If correct please mark brainliest.

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3 years ago
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Explanation:

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8 0
3 years ago
__________ unemployment refers to loss of jobs due to a recession or a similar downturn in the economy.
Eva8 [605]

Answer:

Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.

Explanation:

Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.

4 0
3 years ago
In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michiga
lilavasa [31]

Answer:

A. $96

B. $228

C. $42

Explanation:

A. Calculation to determine the Amount of SUTA tax the company must pay to Nebraska on Porter's wages

SUTA tax =$3,000 x 3.2%

SUTA tax = $96

Therefore the Amount of SUTA tax the company must pay to Nebraska on Porter's wages is $96

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SUTA tax =($9,000 - $3,000 )x3.8%

SUTA tax =$6,000 x 3.8%

SUTA tax = $228

Therefore the Amount of SUTA tax the company must pay to Nebraska on Porter's wages is $228

C. Calculation to determine the Amount of the net FUTA tax on Porters wages

Net FUTA tax=$7,000 limit) x 0.6%

Net FUTA tax = $42

Therefore the Amount of SUTA tax the company must pay to Nebraska on Porter's wages is $42

3 0
3 years ago
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