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Grace [21]
3 years ago
10

You need a 30-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 360-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $950
Business
1 answer:
miskamm [114]3 years ago
7 0

Answer:

$573,963

Explanation:

First, calculate the present value of the loan payments using the following formula

PVA = PMT x [ ( 1 + r )^n - 1 ] / [ r ( 1 + r )^n)

PVA = $950 x [ ( 1 + 7.1%/12 )^360 - 1] / [ 7.1%/12 ( 1 + 7.1%/12 )^360)

PVA =  $141,362.32  

Now calculate the difference of Value of loan and the present value of loan payment

Difference = Loan value - PV of loan payment = $210,000 - $141,362.32 = $68,637.68

This te Ballon payment in present value term, We need to determine the value at the end of the loan term.

Hence we need to calculate the future value of this payment as follow

Future value = Present vale x ( 1 + Monthly Interest rate )^numbers of months

Future value = $68,637.68 x ( 1 + 7.1%/12 )^360

Future value = $573,963.09

Future value = $573,963

Hence the ballon Payment will be $573,963

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Pure monopoly refers to Multiple Choice any market in which the demand curve for the firm is downsloping. a standardized product
skelet666 [1.2K]

Answer:

a single firm producing a product for which there are no close substitutes.

Explanation:

A pure monopoly is a single supplier having a market or industry i.e. defined. The firm should be considered as an industry also in this there is no competitor or any subsitution existed. It can be arise at the time when the market share of the one firm is more than 90%

So as per the given situation, the above represent the answer

5 0
2 years ago
Classify technical education with example?​
german

Answer:

A kind of education which equips with skills that involve the use of practical approaches and other physical instruments in executing projects. Technical education is learning something about a specific work scientifically in detail and practical.

A few common examples include schools and education programs that focus on science and engineering, information and technology, architecture and design, business and fipnance, health and social services, education and child development, hospitality and tourism, or the fine and performing arts.

7 0
2 years ago
Manufacturing uses normal costing for its​ job-costing system, which has two​ direct-cost categories​ (direct materials and dire
Anvisha [2.4K]

Answer:

Results are below.

Explanation:

Giving the following information:

Total manufacturing costs, $8,450,000

Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)

Work-in-process inventory on January 1, 2017, $390,000

Cost of finished goods manufactured, $8,020,000

<u>First, we need to calculate the direct material and direct labor:</u>

Direct labor= Manufacturing overhead allocated/2.5

Direct labor=  3,375,000 / 2.5

Direct labor= $1,350,000

Total manufacturing costs= Direct material + direct labor + allocated overhead

8,450,000= Direct material + 1,350,000 + 3,375,000

Direct material= $3,725,000

<u>Finally, the ending work-in-process:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

8,020,000= 390,000 + 8,450,000 - Ending WIP

Ending WIP= $820,000

3 0
2 years ago
Which type of bank account is best for everyday transactions
Elena-2011 [213]

Answer:

Checking accounts

Explanation:

They are better for everyday transactions such as purchases, bills and ATM withdrawals.They also Have lower interest. Savings Accounts would be better for storing/Earning interest.

6 0
3 years ago
Read 2 more answers
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,
VikaD [51]

Answer:

$34,600

Explanation:

The computation of beginning retained earnings balance is seen below:

But we know that;

Ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid

$51,600 = Beginning retained earnings + $21,100 - $4,100

Beginning retained earnings = $51,600 - $21,100 + $4,100

Beginning retained earnings = $34,600

4 0
3 years ago
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