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bogdanovich [222]
3 years ago
9

You need a 30-year, fixed-rate mortgage to buy a new home for $280,000. Your mortgage bank will lend you the money at an APR of

5.75 percent for this 360-month loan. However, you can afford monthly payments of only $1,200, 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 $1,200
Business
1 answer:
SashulF [63]3 years ago
7 0

Answer: $‭415,688‬

Explanation:

First find the future value of paying $1,200 every month for 360 months.

This is the future value of an annuity:

= Payment * ([1 + interest) ^ no. of periods - 1) / interest

Use periodic interest = 5.75%/ 12

30 years * 12 = 360

= 1,200 * ( ( 1 + 5.75%/12)³⁶⁰ - 1) / 5.75% / 12

= $1,149,357.14

Future value of the loan amount is:

= 280,000 * (1 + 5.75% / 12) ³⁶⁰

= $1,565,045.14

Ballon Payment = 1,565,045.14 - 1,149,357.14

= $‭415,688‬

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From June to the end of September, Jennifer wants to save at least $1,500. Her monthly expenses are $600. Jennifer saves whateve
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The minimum sales required by Jennifer to meet her savings goal must be $26.25 per hour or $2100 for September.

Given that,

Savings desired = $1500

Monthly expenses = $600

Let money earned by her every hour be x

No. of scheduled work hours = 80

So,

Total money earned for the month = 80 × x

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As we know,

Money left = Total money earned - expenses

= 80x - $600 ...(i)

A.T.Q.

Money left must be = $1500

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80x - 600 = 1500

Now, solving for  x

80x - 600 = 1500

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80x = 2100

x = 2100/80

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Thus, the required sales are $ 26.25 per hour or ( 26.25 × 80 = $2100) for the month of September.

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4 0
3 years ago
"IFRS uses a fair value test to measure impairment loss. However, IFRS does not use the first-stage recoverability test under GA
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If the same number of units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two
andrey2020 [161]

Answer:

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It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.

Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.

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If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line

Eg : Good1    Good2     MOC [∆Good2/∆Good1]

      0               20             _        

      10             10           -10/10 = -1                  (10-20)/(10-0)

       20              0           -10/10 = -1                   (0-10)(/20-10)

So , same (1) good 2 is sacrifised to attain a good 1 each time.

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The name for computations that allow you to determine how much money to deposit now to earn a desired amount in the future is
nydimaria [60]

Answer:

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3 years ago
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