1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergejj [24]
3 years ago
11

1. Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest

for 30 years. How much money did you pay as your down payment?
2. How much money was your existing mortgage (loan) for?
3. What is your current monthly payment on your existing mortgage? Note: Carry at least 4 decimal places during calculations, but round your final answer to the nearest cent.
4. How much total interest will you pay over the life of the existing loan?
5. This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $112,681 left to pay on your loan. Your house is now valued at $180,000.
6. How much of the original loan have you paid off (i.e, how much have you reduced the loan balance by?
7. How much money have you paid to the loan company so far (over the last 10 years)?
8. How much interest have you paid so far (over the last 10 years)?
9. How much equity do you have in your home (equity is value minus remaining debt)?
10. Since interest rates have dropped, you consider refinancing your mortgage at a lower 6% rate. If you took out a new 30 year mortgage at 6% for your remaining loan balance, what would your new monthly payments be?
11. Notice that if you refinance, you are going to be making payments on your home for another 30 years. In addition to the 10 years you’ve already been paying, that’s 40 years total. How much will you save each month because of the lower monthly payment?
12. How much total interest will you be paying (consider the interest you paid over the first 10 years of your original loan as well as interest on your refinanced loan)?
13. Now the non-computational question: Does it make sense to refinance?
Business
1 answer:
Ierofanga [76]3 years ago
4 0

Answer:

1. Down payment = $15,000

2. The existing mortgage (loan) was for $135,000

3. The current monthly payment on the existing mortgage is $990.58

4. The total interest over the life of the existing loan = $221,609.58

6. The amount of the original loan paid off is $22,319.

7. Total amount paid to the loan company over the last 10 years is $258,928.58 ($243,928.58 + $15,000)

8. Total interest paid over the last 10 years is $221,609.58

9. The equity in the home is $67,319 ($180,000 - $112,681)

10. The new monthly payments will be $675.58

11. Saving each month because of the lower monthly payment is $315 ($990.58 - $675.58)

12. Total Interest = $352,137.21 ($221,609.58 + $130,527.63)

13. It does not make sense to refinance because what is saved per month cannot compare with the additional interest expense to be incurred for prolonging the payments.

Explanation:

a) Data and Calculations:

1. Cost of a home = $150,000

10% down payment = $15,000

Existing Mortgage = $135,000 ($150,000 - $15,000)

Home Price  150000

 Down Payment  10 %

Loan Term  30  years

Interest Rate  8%

House Price $150,000.00

Loan Amount $135,000.00

Down Payment $15,000.00

Total of 360 (30 years * 12)

Mortgage Payments $356,609.58

Total Interest $221,609.58

Ten years after, the loan balance has been reduced by $22,319 ($135,000 - $112,682)

Refinancing calculations:

Home Price  112681

 Down Payment  0 %

Loan Term  30  years

Interest Rate  6

   

Monthly Pay:   $675.58 Monthly

Total Mortgage Payment $243,208.63

Total Out-of-Pocket $243,208.63

Total of 360 Mortgage Payments $243,208.63

Total Interest $130,527.63

 

You might be interested in
If the current exchange rate is 1 euro to 1.5 U.S dollars, according to the theory of purchasing power parity, a haircut that co
STALIN [3.7K]

Answer: (1) 10 euros (2) 15dollars

Explanation:

S= P1 /P2

where:

S= Exchange rate of currency 1 to currency 2

P1 = Cost of good X in currency 1

P2 = Cost of good X in currency 2

(1) s = 1.5, P1 = 15 dollars, P2 = ???

so,

1.5 = 15 / P2

P2 = 15/1.5 = 10 euros

Hence, according to the theory of purchasing power parity,

The price of a haircut that cost 15 dollars in Dallas will be 10 euros in Paris.

(2) S = P1/P2

taking 1 euro to 1.5dollars exchange,

1.5 = P1/P2 but P2 = 10 euros

hence P1 = 1.5 x 10 = 15 dollars.

Hence, according to the theory of purchasing power parity,

A wheel of French cheese that costs 20 euros in Paris should cost 15dollars in Dallas

4 0
3 years ago
Match each example with the barrier to inclusion that best describes it.
SCORPION-xisa [38]

Answer:

A)The "like me" bias

B)Ethnocentrism

C)prejudice

D)Ethnocentrism

E)Perceived threat of loss

F)Stereotype

Explanation:

.

4 0
2 years ago
How much is one euro in american dollars?
djverab [1.8K]
A euro equals $1.08 in American dollars.
4 0
3 years ago
During the month of January, Marcos & Henesey, Inc. had total manufacturing costs of $165,000. It incurred $62,000 of direct
adell [148]

Answer:

$68,800

Explanation:

Let the direct material used be X,

Direct Material + Direct Labor + Over Head = Total product cost

X + $62,000 + $40,000 = $165,000

X + $102,000 = $165,000

X = $165,000 - $102,000

X = $63,000 Materials Used

Raw Materials used = Beginning Inventory + Purchased - Ending Inventory

Raw Materials used = Beginning Inventory + Purchased - [Beginning Inventory + $5,800]

$63,000 = Beginning Inventory + Purchased - Beginning Inventory - $5,800

$63,000 = Purchased  - $5,800

Purchased =  $63,000 + $5,800

Purchases = $68,800

6 0
3 years ago
At December 31, 2019, Oriole Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 109,261
solong [7]

Answer:

The company should report the 03 EPS figures on its 2020 income statement:

EPS continuing operations = $3.64

EPS discontinued operations = $(0.54)

EPS net income = EPS continuing operations + EPS discontinued operations = $3.10

Explanation:

<u>* Calculation in EPS continuing operations:</u>

EPS continuing operations = (Net income from continuing operation - preferred dividend)/No. of common shares outstanding

in which: Net income from continuing operation = Income from continuing operations before taxes * (1- tax rate) = 24,649,800 * (1-35%) = $16,022,370

preferred dividend = $1,092,610

No. of common shares outstanding = 4,099,840

EPS continuing operations = ($16,022,370 - $1,092,610) / 4,099,840= $3.64

<u>* Calculation in EPS discontinued operations:</u>

EPS discontinued operations = Net income from discontinuing operation /No. of common shares outstanding

in which: Net income from continuing operation = Income from discontinuing operations before taxes * (1- tax rate) = (3,399,100) * (1-35%) = $(2,209,415)

No. of common shares outstanding = 4,099,840

EPS discontinued operations = (2,209,415)/ 4,099,840 = $(0.54)

5 0
3 years ago
Other questions:
  • Define what is a constant dividend payout ratio policy
    5·1 answer
  • The emergency planning process includes the following steps:
    8·1 answer
  • Rational choices: A. are based on a comparison of total benefits and total costs. B. can only be made by those who are economist
    13·1 answer
  • Grace got a loan of $500 from her bank, and she had to repay it with $550. Which term describes the extra money Grace had to pay
    7·1 answer
  • At the end of the season, little billy's baseball team has a record of 7 wins and 5 losses. little billy's best buddy bobby's te
    6·1 answer
  • Categories of expenditures Van and Amy Cho live in Swarthmore, PA. Amy's father, Carlos, lives in Sweden. For each of the follow
    13·1 answer
  • You are purchasing a 30-year, zero coupon bond. The yield to maturity is 9.1% and the face value is $1,000. What is the current
    10·1 answer
  • Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent yea
    9·1 answer
  • What best describes the role of government in a free enterprise system? ​
    15·1 answer
  • Select the account that would be decreased if the owner of hillary's hair salon decides to withdraw $40 for personal use. multip
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!