Complete question:
The condominium at the beach that you want to buy costs $249,500. You plan to make a cash down payment of 20 percent and finance the balance over 10 years at 6.75 percent. What will be the amount of your monthly mortgage payment?
a. $2,291.89
b. $2,809.10
c. $3,287.46
d. $3,412.67
e. $4,145.68
Answer:
$2,291.89 will be the amount of your monthly mortgage payment
Solution:
A mortgage interest is considered the principal balance.
Every month you spend a portion of your monthly mortgage payment in order to pay off another principal or mortgages debt and a portion of the monthly payments will be charged into interest on the loan.
249500 x 20%= 49900
Amount financed = 249500-49900 = 199,600
Enter 10×12 6.75/12 199,600 0
N I/Y PV PMT FV
-2,291.89
Answer:
Total amount= $12,558.68
Explanation:
Giving the following information:
Every three months, she deposits $550 in her bank account, which earns 8 percent annually but is compounded quarterly Four years later, she used the entire balance in her bank account to invest in an investment at 7 percent annually.
First, we need to calculate the total accumulated money after four years with the following formula.
FV= {A*[(1+i)^n-1]}/i
A= deposit= 550
N= 16
i=0.08/4= 0.02
FV= {550*[(1.02^16)-1]}/0.02= 10,251.61
Now, we calculate the second investment:
FV= PV*(1+i)^n= 10,251.62*(1.07^3)= $12,558.68
Answer:
Insider Trading
Explanation:
Insider trading is an illegal act which is performed by an individual on the bases of confidential information. Any information which is not for public use and is used for personal benefit is an offense which is committed by Sally.
She leaked the information to Alice who further used that information to her own personal benefit which is straight off an illegal act falling in the category of insider trading.
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Answer and Explanation:
The computation of the depreciation expense and book value at the end of 2016 is shown below:
But before that first determine the cost of the asset which is
Cost of the asset is
= Purchase price + rear hydraulic lift + sales tax
= $62,000 + $8,000 + $3,000
= $73,000
Now the depreciation expense is
= ($73,000 - $8,000) ÷ (10 years)
= $6,500
ANd, the book value is
= $73,000 - $6,500 × 2
= $60,000
