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Svet_ta [14]
2 years ago
15

You plan to purchase a $340,000 house using either a 25-year mortgage obtained from your local savings bank with a rate of 8.10

percent, or a 10-year mortgage with a rate of 7.10 percent. You will make a down payment of 20 percent of the purchase price.
a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid?
b. Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?
Business
1 answer:
larisa [96]2 years ago
5 0

Answer:

a. Interest under 10 year mortgage = CUMIPMT(7.1%/12, 10*12, 340000*80%, 1, 10*12, 0)

Interest under 10 year mortgage = 108662.44

Interest under 25 year mortgage = CUMIPMT(8.1%/12, 10*12, 340000*80%, 1, 25*12, 0)

Interest under 25 year mortgage = 363217.16

Difference in interest = 363217.16 - 108662.44

Difference in interest = 254554.72

b. Monthly payment under 10 year = PMT(7.1%/12, 10*12, 340000*80%)

Monthly payment under 10 year = 3172.19

Monthly payment under 25 year = PMT(8.1%/12, 25*12, 340000*80%)

Monthly payment under 25 year = 2117.39

Difference in the monthly payment = 3172.19 - 2117.39

Difference in the monthly payment = 1054.80

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Answer:

Are an alternative to new ventures.

Explanation:

Joint ventures is a business arrangement between two of more organisations to form a partnership. The oganisations involved share ownership, profits, investments.

A joint venture provides access to a large number of resources and it also provides the opportunity to gain new insight and expertise.

Different organizations enter into joint venture for either the purpose of a production process or research avtivity.

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3 years ago
8/9 kids have cell phones. what percent didnt​
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3 years ago
If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n) ______.
lara31 [8.8K]

Answer: a) increase in the demand for Kindles.

Explanation: the substitution effect for substitute goods gives that, if the price of good A rises, the demand for good B rises. Since a substitute good is a good that can be used in place of another, they are goods that a consumer perceives as similar or are comparable, in such a way that having more of one good causes the consumer to desire less of the other good. From the viewpoint of price, and given that consumers always prefer to spend less in instances where two goods are substitutes, it then means that Kindle can be used and preferred in place of Nooks given that the price of Nooks had gone up. Therefore, increasing the price of Nooks causes a corresponding increase in the demand for Kindles.

3 0
3 years ago
Doyle Company issued $360,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were issued at face value. Interest is
Lina20 [59]

Answer:

The balance of the equation at end of year 2 is$388,800

The balance of the equation at end of year 3 is   $417,600

Explanation:

                           Assets                        =Liabilities          +shareholders' equity

                    Land +cash                           Bonds payable     retained earnings

1/1/year 2                   $360,000                  =$360,000

1/1/year 2 $360,000 ($360,000)                

31/12/year2                $53,500                         =                                     $53,500

31/12/year2              ($28,800)                      =                                      ($28,800)                          

Balance                              $388,800          =                                       $388,800

Opening balance                $388,800=                                              $388,800

31/12/year3                            $53,500=                                               $53,500

31/12/year3                           ($28,800)=                                              ($28,800)                                

Balance                               $ 417,600                                                $417,600

                                             

The interest on bond=$360,000*8%=$28,800

3 0
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Shtirlitz [24]

Answer:

A).price will fall and quantity will fall

Explanation:

A reduction in demand causes the demand curve to shift to the left. The demand for a good may decrease due to a fall in incomes( assuming a normal good), a rise in the price of a substitute commodity, increases in the price of a compliment product, or changes in customer preferences.

Reduction in demand means a product is less desirable in the market. Its price will fall as sellers try to woe buyers to purchase it. The quantity supplied will also decline as few customers will be willing to buy the product.

5 0
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