True or false, statistics are procedures used to organize, summarize, and communicate information

Suppose that five years ago you borrowed $300,000 using a 30-year fixed-rate mortgage with an annual interest rate of 10% with m

Elenna [48]

Answer:

Please check the explanation below.

Explanation:

Rate of Interest =10% or 0.83% monthly

Monthly Payment under this plan=PMT(0.0083, 360, 300000) =$2,632.71

Loan outstanding after 5 years of payments =$289,723

New Interest Rate =8.5% or 0.7083% monthly

Balance Tenure= 25 years

New Monthly Installment =PMT(0.007083,300,289723) =$2,332.93

Monthly savings in installment reduction =$2,632.71 - 2,332.93 =$299.78

a. Net present value of refinancing = -0.05x289,723 + 299.78x{(1-(1+0.007083)-300)/0.007083}

= -14,486.15 + 299.78x124.1886

= -14,486.15 + 37,229.25

= 22,743.10

b. With new monthly installment, balance outstanding at the end of 8th year =$278,258

Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

= -14,486.15 + 299.78x31.68

= -14,486.15 + 9,446.46

= -4,989.68

c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

0.3423 = 1-(1.007083)-n

(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

3 0

3 years ago

If you expect a stock be priced at $80 in one year and pay a dividend of $1.85, what is the most you would be willing to pay for

ElenaW [278]

Willing to pay for the stock today is $72.43.

Given values, Dividend = $1.85

Price = $80

return = 0.13

Formula, Current Price = (Dividend + Price ) / (1 + return )

= (1.85 + 80) / (1+ 0.13)

= $72.43

The number one purpose that buyers personal inventory is to earn a return on their funding. That go back commonly is available in viable methods: The stock's price appreciates, this means that it is going up. you can then promote the stock for a profit if you'd like.

The very best way to shop for stocks is thru a web stockbroker. After beginning and funding your account, you may buy shares via the broker's internet site in a remember of minutes. Other options encompass the use of a full-provider stockbroker, or shopping for inventory directly from the company.

Learn more about stock here:-

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#SPJ4

8 0

2 years ago

Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Straight Industries signed a not

Damm [24]

Answer:

$30,604

Explanation:

The computation of the interest expense for the year 2020 is as follows:

2019 interest expense is

= Equipment amount × rate of interest

= $311,967 × 9%

= $28,077

The Dec 31 2019 liability of book value is

= $311,967 + $28,077

= $340,044

Now the interest expense for the year 2020 is

= $340,044 × 0.09

= $30,604

3 0

2 years ago

What is a brand promise?

Burka [1]

Usually, a brand promise is some sort of statement said by an organization to its consumers, or customers, stating what the customers may expect from their product(s) and/or service(s).

Hope this helps!

5 0

3 years ago

azra’s position as the manager of natural nutrition gives her the ________ to make many decisions during the course of a week, i

Mama L [17]

The appointment of Azra as manager gives her authority to make many decisions during the course of a week

Let understand that options includes accountability, authority, responsibility, delegation.

Basically, the main function of an organization manager is increase the efficiency or effectiveness of their employees, processes, projects, organizations etc

However, the four basic functions of manager includes effective planning, organizing, leading, and controlling of units in the company.

Therefore, Azra’s position gives her authority to make decision, assigns tasks, approve budget requests and market the business.

Learn more about Manager function here

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6 0

2 years ago