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scoray [572]
3 years ago
5

A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate

the difference in payments on a 30-year mortgage at an interest rate of .75% a month versus a 15-year mortgage with an interest rate of .7% a month. Both mortgages are for $100,000 and have monthly payments. What is the difference in total dollars that will be paid to the lender under each loan?
Business
1 answer:
Lynna [10]3 years ago
6 0

Answer:

$113,465

Explanation:

Calculation to determine difference in total dollars that will be paid to the lender under each loan

First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month

$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})

PMT = $804.62

Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month

$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})

PMT = $ 978.87

Now let determine the Total difference

Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)

Total difference= $113,465

Therefore difference in total dollars that will be paid to the lender under each loan is $113,465

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Mama L [17]

Answer: B. a 2 point capital gain

Explanation:

Municipal Bonds have to be amortized using the straight-line method and this applied to both newly issued or bonds being traded at a premium.

The bond in question is trading at 105 and so has a 5 point premium which needs to be amortized at 1 point a year for 5 years. As it was bought after two years, the amortization was 2 points which means the cost of the bond should be;

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elixir [45]

Answer:

The price should be recorded as $167,500

Explanation:

As per the accounting principles, assets should be recorded at the price they were paid for. In case of a purchase, the accountant should record in the books the amount the company paid to acquire the asset. For sales, the amount received from the buyer is the figure to be recorded in the books.

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5 0
2 years ago
In Chapter 7 bankruptcy a debtor
nalin [4]

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Due to the above reason, then the debtor will be required by the government to list all of their assets and the liabilities that it owns and this will be used in determining whether the obligation has been fulfilled or not.

3 0
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Answer:

Option E                  

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artcher [175]

Answer:

Option A is correct,price discrimination

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There are laws that frown against price discrimination in order to ensure fairness in business dealings and to ensure the activities of price discriminator does have negative effects on consumers or businesses that rely on the price discriminator for inputs.

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