Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.
A discount point is 1% of the loan amount. Bob and Mary are paying two points (or 2% of $180,500), which is $3,610.
What is discount points?
- Discount points are a shape of paid ahead of time intrigued that contract borrowers can buy to lower the intrigued rate on their consequent month to month payments.
- Discount points are a one-time expense, paid up front either when a contract is to begin with orchestrated or amid a refinance.
- Each markdown point for the most part costs 1% of the overall credit and brings down the loan’s intrigued rate by one-eighth to one-quarter of a percent.
- Points don’t continuously got to be paid out of the buyer’s stash; they can some of the time be rolled into the advance adjust or paid by the vender.
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Answer:
Have the highest risk and rates of return and the highest standard deviations.
Explanation:
The efficient portfolios of N risky operatives is the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. And in other words, portfolios that lie below the efficient frontier are been described as sub optimal because they do not provide enough return for the level of risk. Portfolios that cluster to the right of the efficient frontier are sub optimal because they have a higher level of risk for the defined rate of return.
Answer:
$4000
Explanation:
Step 1. Given information.
The child tax credit is $2000 per child.
Step 2. Formulas needed to solve the exercise.
Total amount of credit = Number of kids * amount of credit.
Step 3. Calculation and Step 4. Solution.
The AGI limit phaseout begins at $400.000 for joint tax filters. In this case there are 2 dependent kids and hence the credit = 2000*2 = 4000.
Explanation:
Is the seller licensed?
Is the investment registered?
How do the risks compare with the potential rewards?
Do you understand the investment?
Answer:
Present value = $24.009009 rounded off to $24.01
The maximum price that should be paid for a share today is $24.01
Explanation:
To calculate the price of the stock today that should be paid, we can use the discounted cash flow approach. It calculates the value of stock today based on the present value of future values of cash flows that are expected from the stock. Thus the present value of a stock that is expected to pay a dividend and sell for a given price in 1 year can be calculated as follows,
Present Value = [D1 + P1] / (1+r)
Where,
- D1 is the next dividend expected from the stock
- P1 is the price of the stock in 1 year
- r is the required rate of return
Present value = [1.65 + 25] / (1+0.11)
Present value = $24.009009 rounded off to $24.01