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
NISA [10]
2 years ago
12

On April 1, year 1, Mary borrowed $130,000 to re-finance the original mortgage on her principal residence. Mary paid 1 points to

reduce her interest rate from 7% to 6%. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid?
Business
1 answer:
Simora [160]2 years ago
4 0

Answer:

Mary can deduct $1,300 in year 1 for her points paid.

Explanation:

a) Data and Calculations:

April 1, Amount borrowed by Mary to refinance the original mortgage on her principal residence = $130,000

Payment of 1 points to reduce Mary's interest rate from 7% to 6% amounts to 1% of $130,000 = $1,300.

b) Mary paying 1 points is beneficial to her since her interest cost is reduced from 7% to 6%.  This implies that her total finance cost at the end of the 30-year period will be reduced.

You might be interested in
A firm that is a "pure monopoly" is
vichka [17]
I believe it is A

a monopoly is when a company owns all the companies in that buisnesses
7 0
3 years ago
You see a television commercial for a product you may want to buy, and there is a telephone number you must call to place an ord
bulgar [2K]

Answer:

krkfkfgkgkgkgkf

Explanation:

nxnxnxxnxnxckfk

8 0
2 years ago
An example of Web 2.0 is a high school student promoting his or her poetry on a blog.
puteri [66]
I believe the answer to this question is : False
6 0
3 years ago
Read 2 more answers
How widely used are private correctional companies to operate jails?
Kobotan [32]
Not very, most of the time CO’s are underpaid so they can have mass amounts of them.
7 0
2 years ago
Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. If the monthly payment is $2,416.60, by
Virty [35]

Answer:

The answer is A. $1,791.60

Explanation:

Annual interest payment on the loan is:

6% x $125,000

=$7,500

Therefore, monthly interest payment is $625($7,500/12 months).

Monthly payments (which comprise principal and interest payment) is $2,416.60.

The carrying value decrease when the first payment is made on January 31 was made will be:

$2,416.60 - $625

= $1,791.60

4 0
3 years ago
Other questions:
  • Katrina's fury has $697,400 in sales. the profit margin is 3.4 percent and the firm has 12,500 shares of stock outstanding. the
    10·1 answer
  • After reviewing the Law of Diminishing Marginal Returns, an economist would correctly conclude that in the short run: total prod
    10·1 answer
  • Buildtron inc., a construction firm, is in need of a construction superintendent, whose primary responsibilities involve organiz
    15·1 answer
  • Because customers have different needs and expectations, the key to distributive fairness in service recovery is
    10·1 answer
  • Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a
    6·1 answer
  • 18.On January 1, 2016, the Accounts Receivable and the Allowance for Uncollectible Accounts for Darius Company carried balances
    6·1 answer
  • The unemployment that is caused by changes in the​ economy, such as shifts in manufacturing​ techniques, increased use of comput
    10·1 answer
  • Owner's withdrawals:______.
    7·1 answer
  • Real property taxes are often assessed on the value of the property at the beginning of the year. when property is sold in the m
    6·1 answer
  • James is a sales agent who is sponsored by best realty, and he is a member of the a-1 team. what must be done to ensure that jam
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!