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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.

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Usually D.) Focus Group

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Activity rates from Mcelderry Corporation's activity-based costing system are listed below. The company uses the activity rates
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Answer:

b) 2,388.22

Explanation:

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orders

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Setting up batches       18.26 per batch                    12          <u>  219.12</u>

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8 0
2 years ago
LO 3.1A company’s product sells for $150 and has variable costs of $60 associated with the product. What is its contribution m
Pavel [41]

Answer:

$90

Explanation:

The formula and the computation of the contribution margin per unit are presented below:

Contribution margin per unit = Selling price per unit - variable cost per unit

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If we deduct the variable cost per unit from the selling price per unit, then the contribution margin per unit can arrive

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3 0
3 years ago
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Answer:

b. revenues minus accounting and opportunity costs.

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A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit

The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.

4 0
3 years ago
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