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timurjin [86]
2 years ago
10

A borrower took out a 30-year fixed-rate mortgage of $2,250,000 at a 7.2 percent annual rate. After 10 years, he wishes to pay o

ff the remaining balance. Interest rates have by then fallen to 7 percent. How much must he pay to retire the mortgage (to the nearest dollar)? Group of answer choices $2,015,678 $2,122,426 $1,939,766 $2,225,330 $2,212,041
Business
1 answer:
Nastasia [14]2 years ago
5 0

Answer:

$2,122,426

Explanation:

The computation of the amount that must to pay for the retirement of the mortgage is given below:

But first we have to determine the monthly payment i.e. PMT by using excel function

PV=-$2,250,000

RATE = 7.2% ÷ 12 = 0.6%

N = 12 × 30 = 360

FV = 0

PMT = $15,272.73

Now we have to determine the future value  

Given that

PV=-$2,250,000

RATE = 7.2% ÷ 12 = 0.6%

N = 12  × 5 = 60

PMT = $15,272.73

So,  FV  = $2,122,425.62

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Besides the actual mortgage payment, which also factors into the monthly payment on a home?
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Aside from the actual mortgage payments, you also pay for your monthly property taxes, homeowner's insurance, and home repairs.

Sometimes homeowners also pay for monthly dues to their homeowners association. This monthly dues include water, sewer, garbage, and maintenance of other amenities like clubhouse, pool, and tennis courts. 
5 0
3 years ago
Read 2 more answers
Management of a close corporation often resembles that of a______, but a corporation must meet the statutory requirements to rem
Reika [66]

Answer:

Explanation:

The statement in the question is not complete and should be the following with each of the answers provided being part of the statement like so,

Management of a close corporation often resembles that of a Partnership , but a corporation must meet the statutory requirements to remain a corporation. Often, shareholders in a close corporation restrict the transferability of shares. If a majority shareholder misappropriates company funds, the normal remedy for the other shareholders is to have their shares appraised to determine value and then receive that value.

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3 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $82,000 and $4,500, r
Cerrena [4.2K]

Answer: $10,700

Explanation:

The Uncollectible Account Expense is the Accounting Adjustment made when a Receivable defaults on their debt and it can be calculated using the following formula,

= Uncollectible Amount written off + Closing Balance - Opening Balance.

Now the balances are as follows,

Opening Balance for Year 2 = 4,500

Closing Balance for Year 2 = 6,800

Uncollectible Amount written off during Year 2 = 8,400

Calculating therefore,

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= $10,700

Allegheny will report $10,700 as Uncollectible Accounts Expense for Year 2.

3 0
3 years ago
A researcher wants to test the order of integration of some time series data. He decides to use the DF test. He estimates a regr
pav-90 [236]

Answer:

a) H0: u = presence of a unit root

   HA: u ≠ presence of a unit root  ( i.e. stationary series )

b) t stat = -0.064

c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis

d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise

Explanation:

<u>a) stating the null and alternative hypothesis</u>

H0: u = presence of a unit root

HA: u ≠ presence of a unit root  ( i.e. stationary series )

<u>b) performing the test </u>

critical value = -2.88

T stat = coefficient / std error

          = -0.02 / 0.31  = -0.064

c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis

d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise

   

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3 years ago
Ashley, a purchasing manager, tells Franklin, the human resource manager, that she has selected a candidate to be her purchasing
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Franklin replies that Ashley should add information about the job responsibilities, work schedule, and starting date.

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The job offer letter is delivered by the authority to permit and ask an individual officially to join the firm or an organization under given time period by responding in respective manner. This offer letter for job joining carry various basic information like

  • Job profile: which carry the type of work candidate need to perform in firm.
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  • Work schedule: carry the stage wise or time allotment to each duty respectively.
  • Joining date: the very important information is date, time and venue of joining.
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