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natta225 [31]
3 years ago
13

Teresa is considering purchasing a home for $220,000 by taking out a loan with an interest rate of 4.3% for 30 years. What would

her monthly payment be?
Use the monthly payment formula to calculate the monthly payment for this loan:

M =
M = monthly payment

P = principal

r = interest rate

t = number of years



$896.25
$1,088.72
$1,868.70
$2,069.75
Business
1 answer:
Alex Ar [27]3 years ago
8 0

Answer:

$1,088.72

Explanation:

This is an annuities situation. The applicable formula is

M  = PV   ×   <u>    r         </u>

                     1 − (1+r)−n

where p = $220,000

r = 4.3% interest rate per year,  Converted to monthly rate = 4.3/100 /12=0.00358

r = 30 year, which is 30 x 12 months= 360 months

M= $220,000  x <u> 0.00358        </u>

      1  - (1+0.00358 ) ^ - 360

M=$220,000 x  <u> 0.00358     </u>

                            1- 0.2762

M = $220,000 x (0.00358 /0.7238)

M = $220,000 x 0.0049461

M = 1,088.12

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Answer:

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The amount which is to be capitalized in the financial statement should be an asset or an expense that is not showing in an income statement.  

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4 0
3 years ago
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular d
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Answer:

It will purchase 3 cans

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Explanation:

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It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.

<u>consumer surplus:</u>

difference between the amounts he was willing to pay for each unit and the market price:

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5 0
3 years ago
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Answer:

c)$568; $378; $54

Explanation:

($1,120 - $1,000)/$1,000 = 12%

(0.6)14% + (0.4)10% = 12.4%

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Answer:

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Price risk is the potential for the decline in the price of an asset or security relative to the rest of the market. It excludes market risk, or the potential for an entire market to go down in value.

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