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vazorg [7]
2 years ago
5

Bob got a 30 year Fully Amortizing FRM for $1,500,000 at 4%, except with non-constant payments. For the first 2 years Bob will p

ay $1,250 per month. The loan will become a fully amortizing mortgage after 2 years. What will be the balance on this mortgage after 2 years
Business
1 answer:
ikadub [295]2 years ago
5 0

Answer:

$1,593,535.83

Explanation:

Future Value of mortgage determines the future value of a mortgage after payments have been made, at a regular frequency, charged a regular rate of interest, compounded at payment dates.

DATA

PV = $1,500,000

N = 24

r = 0.04/12

PMT = $1250

FV =?

Solution

PV = (PMT/r)*[1 – 1/(1 + r)^N] + FV/(1 + r)^N

1,500,000 = (1250/(0.04/12)) * (1 – 1/(1 + 0.04/12)^24) + FV/(1 + 0.04/12)^24

1,500,000 = 28785.31353687 + 0.92323916 FV

FV = (1,500,000 - 28785.31353687)/ 0.92323916

FV = $1,593,535.83

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Juliette [100K]

Answer:

$599

Explanation:

The maximum willingness to pay for the Gutter Snipe is the present value of annual payment made to the neighbor.

Annual Payment = $150  

Time = 5 Years

Rate = 0.08

Present Value of Annuity = P*[1 - (1 + r)^-n / r]

                                          = 150*[1 - (1 + 0.08)^-5 /0.08]

                                          = $599

Therefore, The most you would be willing to pay to buy GutterSnipe for your house is $599.

8 0
2 years ago
You are working closely with an experienced associate. He insists on completing a task a certain way, but you know there is a mo
iris [78.8K]
<h2>We can work on the efficient way after justifying with proper reason to the experienced associate.</h2>

Explanation:

Though the question is incomplete, I can understand what is actually expected and then providing solution from my point of view.

When you feel that your idea is better,

  • Calm down yourself to prepare for conversation
  • Place a request to the experienced associate to hear your view
  • Justify how your way is better than the view of experienced associate
  • Make sure that you do not dominate and give respect to his / her age
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8 0
2 years ago
Sal purchased a used toaster at a yard sale. The seller told Sal that although the toaster was more than 10 years old, she had n
inessss [21]

Answer:

<em><u>The manufacturer of the toaster would argue from the point of view of the warranty offered for the toaster.</u></em> In most electronic products, the manufacturer offers warranty ranging from 1 year to 5 years.

<em>For the toaster to have worked for more than 20 years without any problem shows that it was a good product. And, the warranty must have expired hence the need not to be held responsible for whatever happened to it.</em>

Explanation:

4 0
1 year ago
On December 31, 2021, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu
Liono4ka [1.6K]

Answer:

there are no options, but the journal entry should be:

Dr Cash 2,500

Dr Investment in bonds 350

    Cr interest revenue 2,850

Explanation:

Since the bonds' carrying value is less than the face value, it means that Gardner Company purchased them at a discount. When the bonds were purchased, the investment in bonds account's balance was not $100,000 (the par value), instead it was recorded at the lower amount at which they were purchased. As coupon payments are received, the discount on the bonds is amortized and their carrying value should increase until it reaches par value on maturity date.

4 0
2 years ago
A document that totals what the customer owes is called _____.
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Your answer is
<span>B. an invoice</span>
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2 years ago
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