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dsp73
3 years ago
14

Amanda Rice has just arranged to purchase a $640,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage h

as a 7 percent APR compounded monthly and calls for equal monthly payments over the next 30 years. Her first payment will be due one month from now. However, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of Year 8. There were no other transaction costs or finance charges. How much will Amanda’s balloon payment be in eight years
Business
1 answer:
DedPeter [7]3 years ago
7 0

Answer:

$458,197

Explanation:

I prepared an amortization schedule using an excel spreadsheet (which I attached).

purchase price $640,000

down payment $128,000

mortgage principal $512,000

APR 7%

monthly payment $3,406.35

principal's balance at the end of year 8 (month 96) = $458,197

Download pdf
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When the alternatives under consideration have only disbursements (service alternatives), the do-nothing alternative must be inc
Rom4ik [11]
Answer: False

Explanation:
When more than one alternative can be selected from those available, the alternatives are said to be mutually exclusive. In evaluating independent alternatives, each alternative is compared against the "Do Nothing" alternative.
For mutually exclusive alternatives, the do-nothing is a viable option when revenue alternatives are involved.
7 0
3 years ago
A Qdoba and a Baja Fresh both close down. They were both very near by a Chipotle. Now that Qdoba and Baja Fresh are gone, what d
Kitty [74]

Answer:

They were not allowed in advance of this investigation

7 0
4 years ago
Requirement 1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E). Asset (A), Liability (L), or Equity (E)?
motikmotik

Answer:

a. Interest Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

b. Accounts Payable

Identification: Liability

Increases with: Credit

Normal Balance: Credit

c. Calhoun, Capital

Identification: Equity

Increases with: Credit

Normal Balance: Credit

d. Office Supplies

Identification: Asset

Increases with: Debit

Normal Balance: Debit

e. Advertising Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

f. Unearned Revenue

Identification: Liability

Increases with: Credit

Normal Balance: Credit

g. Prepaid Rent

Identification: Asset

Increases with: Debit

Normal Balance: Debit

h. Utilities Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

i. Calhoun, Withdrawals

Identification: Equity

Increases with: Debit

Normal Balance: Debit

j. Service Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

5 0
3 years ago
The market price for wallets is $20. Your technology is such that at your most efficient production point, the average total cos
Yuki888 [10]

Answer:

ask the manager about the marginal cost.

Explanation:

When a business wants to maximise profit it chooses the level of production that gives maximum revenue at lowest cost. Since the average cost is rising, the manager should ask for the marginal cost of production.

Marginal cost is the extra cost incurred for producing an extra unit of a product.

To maximise profit the manager needs to get a production level at which marginal cost is lowest at highest revenue.

3 0
3 years ago
Read 2 more answers
Indicate the effect each account has on retained earnings. (increase, decrease, or no effect)
mojhsa [17]

Answer:

<em><u>Decrease:</u></em>

a)advertising expense

c) Insurance expense

d) Salaries & Wages Expense

g) Utilities Expens

<em><u>Descrease:</u></em>

e) Dividends

<em><u>Increase:</u></em>

b)Service revenue

f) Rent revenue

Explanation:

The retained earnings accumulates the net income of every year.

As net income is determinate like:

revenues - expense = gross profit

expense will make this difference lower and therefore not beign able to help you These are the changes for:

adv expense

service revenue

insurance exepense salaries and wages

Dividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholders

Finally revenues increase it as they make net income to increase as well.

5 0
3 years ago
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