All categories

2 years ago

Karen and Al obtained a 30-year fixed-rate, fully amortized loan when they purchased their home. Which statement is true

1 answer:

5 0

Based on the information given regarding the mortgage, the true statement will be that each of their payments is for the same amount.

A fully amortized payment simply means a payment where the individual makes every payment according to the schedule of the loan.

A fully amortized payment is a periodic repayment of a debt. Since Karen and Al obtained a 30-year fixed-rate fully amortized loan when they purchased their home, they'll pay the same amount monthly.

Learn more about mortgage on:

brainly.com/question/1318711

You might be interested in

The amounts indicated pertain to Royal Fairmont’s trading debt investments, which were purchased on 1/1/21: Cost: $16,000 12/31/

quester [9]

Answer:

loss of $5,000 on adjustment of trading debt investments

Explanation:

The comprehensive income statement records gains and losses on the trading debt investments.

By the end of 2022 the trading debt investments had fallen in value to $11,000 from $15,000 representing a loss of $5,000 to be adjusted in the income statement.

6 0

3 years ago

Wegmans sends deli employees to france to learn about cheese. wegmans is attempting to meet ____ needs.

Iteru [2.4K]

I would say that wedgemans is trying to meet employees needs for development of their knowledge and for in this case the privilege of going to learn about the types of cheeses and perhaps their making in another country which is an additional benefit and which will most likely encourage the employees to work more effectively and with more interest in their work.

4 0

3 years ago

You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $800 per month in a stoc

Svetach [21]

Answer:

Ans. You withdraw each month from your account, for 300 months (25 years) $1,118.03 taking into account the expected inflation rate.

Explanation:

Hi, ok, first, we need to find out how much money will you have after saving in both accounts for 30 years, for that, we need to use the following equation and solve for FV (future value).

$FV=\frac{A((1+r)^{n}-1) }{r}$

Where, A is the amount saved in the account, r is the interest rate that it pays, n are the yearly equal payments, in our case 30. Everything should look like this in the case of the stock account.

$FV=\frac{800((1+0.11)^{30}-1) }{0.11} = 159,216.70$

In the case of the bond account it should look like this.

$FV=\frac{400((1+0.07)^{30}-1) }{0.07} = 37,784.31$

This means that after 30 years you will have $197,001.02

Now, we need to find the amount of monthly withdraw that you can make given the money saved, but in order to take into account the time value of money, we need to use the real rate of return and not the nominal rate of return (9%, when you gather all your money and send it to another acoount). Therefore, we have to find out the real rate of return, like this.

$Real(r)=\frac{[1+Nominal(r)]}{[1+Inflation(r)]} -1=\frac{(1+0.09)}{(1+0.04)} -1=0.0481$

This is 4.81% effective annual rate, but we need this rate to be effective monthly, that is:

$r(monthly)=(1+r(annual))^{\frac{1}{12} } -1=(1+0.0481)^{\frac{1}{12} } -1=0.0039$

That is 0.39% effective monthly, and we have to use the following equation with n=300 months, r=0.0039, PV= $197,001.02 and solve for A.

$PV=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} } =\frac{A(2.234662443)}{0.012682296} =A(176.2032975)$

$197,001.02=A(176.2032975)$

$A=1,118.03$

Best of luck

7 0

3 years ago

James hayes owns 510 shares of ohio utility preferred stock. if this preferred stock issue pays $3.50 per share, what is the tot

katovenus [111]

The total amount of the dividends that Mr. James Hayes will receive in one year is $1785 total dividend.
The formula to get the total dividend is simply multiply the shares by stock issue per share. In this question we have 510 shares and stock issue pay $3.50 per share.
$3.50 per share * 510 shares = $1785 Total dividends

8 0

3 years ago

Mark loses his checkbook. he requests and executes a written stop-payment order for the missing checks. four months later, his b

sertanlavr [38]

For this problem, the bank is liable for the loss of $2,500. It should not have paid check #543. Moreover, the bank is obligatory to honor the written stop-payment order made by Mark for six months. Therefore, Mark does not have the share of liability in this case.

4 0

3 years ago