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lyudmila [28]
3 years ago
12

you need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc

ent APR for this 240 month loan. However, you can afford monthly payments of $1,000, so you offer to pay off any remaining balance at the end of the loan in the form of a single balloon payment. HOw large will this balloon payment have ot be for you to keep your monthly payments at $1000
Business
1 answer:
Delicious77 [7]3 years ago
3 0

Answer: $337,869.73

Explanation:

Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.

The APR needs to be made periodic:

= 7.1% / 12

The $1,000 payment is an annuity so this can be calculated as:

= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate

= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%

= $527,297.83

Future value of $210,000

= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰

= $865,167.56

Balloon payment will be:

= 865,167.56 - 527,297.83

= $337,869.73

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A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves
BlackZzzverrR [31]

Answer:

$11.98

Explanation:

A share of common stock just made a dividend payment of $1.00

The expected long-run growth rate of for this stock is 5.4%

= 5.4/100

= 0.054

The investors required rate of return is 14.2%

= 14.2/100

= 0.142

The first step is to calculate the dividend year 1(D1)

D1= Do(1+g)

= 1(1+0.054)

= 1×1.054

= $1.054

Therefore, the stock price can be calculated as follows

Po= D1/(rs-g)

= 1.054/(0.142-0.054)

= 1.054/0.088

= $11.98

Hence the Stock price is $11.98

3 0
3 years ago
Viral marketing is consistently successful.<br> True<br> False
shutvik [7]
Answer:
Based on what we know, Viral Marking is so successful because it creates curiosity and desire needed to generate the demand for a product or a service.

In conclusion:
Yes, viral marketing is consistently successful.
8 0
2 years ago
Searls Corporation, a merchandising company, reported the following results for July: Number of units sold 2,700 units Selling p
melisa1 [442]

Answer:

$534,600

Explanation:

<em>Contribution margin = Sales - Variable Costs</em>

where :

Sales = 2,700 units x $664 = $1,792,800

Variable Costs = Costs of Goods Sold + Variable Selling Costs + Variable Administrative Cots

                        = 2,700 units x $405 + 2,700 units x $48 + 2,700 units x $13

                        = $1,258,200

therefore,

Contribution margin = $1,792,800 - $1,258,200 = $534,600

6 0
2 years ago
Rs.4000 becomes Rs.8000 in 10 years .What is the rate of interest ?​
kaheart [24]

Answer:

7.2%

Explanation:

\sqrt[10]{2}  = 1.072

3 0
3 years ago
The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indica
Setler [38]

Answer:

$59,080

Explanation:

The calculation of September cash disbursements is shown below:-

September cash disbursement = Company's budgeted fixed manufacturing overhead - Depreciation + Variable manufacturing overhead

= $43,120 - $3,640 + $7.00 × 2,800

= $43,120 - $3,640 + $19,600

= $62,720 - $3,640

= $59,080

Therefore for computing the September cash disbursement we simply applied the above formula.

4 0
2 years ago
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