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mezya [45]
2 years ago
7

On a piece of paper or on a device with a touch screen, hand write the solution to the following problem. Then photograph or sav

e the file in .pdf form and submit it on this page. You would like to buy a house for $1,000,000. You put $200,000 down, and then get a mortgage for the rest at 4%, compounded monthly. What is the difference in the What is the difference in the monthly payment if you amortize the loan over 30 years vs. 15 years
Business
1 answer:
aleksandr82 [10.1K]2 years ago
6 0

Answer:

The difference in monthly payment is:

= $2,098.18.

Explanation:

a) Data and Calculations:

Cost of the Mortgage House = $1,000,000

Down payment = $200,000 or 20%

Mortgage interest rate = 4%

Period of Mortgage amortization = 30 or 15

From an online financial calculator:

Monthly Pay:   $3,819.32

 

House Price $1,000,000.00

Loan Amount $800,000.00

Down Payment $200,000.00

Total of 360 Mortgage Payments $1,374,956.05

Total Interest $574,956.05

Mortgage Payoff Date Apr. 2051

Monthly Pay:   $5,917.50

 

House Price $1,000,000.00

Loan Amount $800,000.00

Down Payment $200,000.00

Total of 180 Mortgage Payments $1,065,150.61

Total Interest $265,150.61

Mortgage Payoff Date Apr. 2036

Monthly payment for 15 years =    $5,917.50

Monthly payment for 30 years =     3,819.32

Difference in monthly payment = $2,098.18

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Answer:

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An investment, which is worth 26,800 dollars and has an expected return of 4.28 percent, is expected to pay fixed annual cash fl
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Answer:

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Explanation:

<em>The present value of a sum expected in the future is the worth today given an opportunity cost interest rate. In another words ,it is amount receivable today that would make the investor to be indifferent between the amount receivable today and the future sum.</em>

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PV - Present value - ?

FV - Future value - 26,800

r- Interest rate per period - 4.28%

n- number of periods- 4

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3 years ago
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Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On December 31, 2013, a parent compan
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Answer:

Related to the transferred equipment, the items that is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2013 is:

C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment."

Explanation:

a) Data and Calculations:

Original cost of the equipment to the parent = $180,000

Transfer of equipment to subsidiary =                 (118,000)

Accumulated depreciation to December 31,        (36,000)

Unaccounted balance =                                          26,000

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