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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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In May and June, Tammy spent all her clothing budget on bathing suits and beach bags. Each bathing suit cost $75. At Tammy’s opt
SashulF [63]

Answer:

Each handbag must cost: $50

Explanation:

Goods :

Bathing suits – Price = $75

Beach bags – Price = ?

At the optimal choice (means equilibrium condition) ,

Marginal utility of last bathing suit purchased = 300

Marginal utility of last beach bag purchased = 200

Our equilibrium condition is marginal utility of money expenditure of both the goods must be equal.

MU of Bathing suits ÷ Price of Bathing suits = MU of Beach bags ÷ Price of Beach bags

300 ÷ $75 = 200 ÷ Price of Beach bags

4 = 200 ÷ Price of Beach bags

Price of Beach bags = 200 ÷4

                                  = $50

Each handbag must cost: $50

6 0
2 years ago
A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels
aleksklad [387]

Answer: a. ​The manufacturers had engaged in a per se violation of antitrust laws.

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3 0
2 years ago
A company uses the FIFO method for inventory costing. At the start of the period the production department had 20,000 units in b
UkoKoshka [18]

Answer:

equivalent cost per unit for labor: $4.1982

Explanation:

complete and transferred    165,000

work on ending WIP               16,500  //   22,000 x 75%

previous work on beginning (8,000) //  20,000 x 40%

Equivalent units                   173,500

labor cost added during the period 726,825

equivalent cost 726,825/173,500 = 4.198193084

equivalent cost per unit for labor: $4.1982

7 0
2 years ago
MARS Chocolate Company is making an estimate of the amount of candy it expects to sell during the Christmas season based on a sp
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A

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Because the judgement of executives does not adequately factor into a mathematical equation. it's like a judgement call only whereas the others can be used in an equation manner

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2 years ago
Which of the following statements concerning direct and indirect costs is NOT true? Multiple Choice Whether a particular cost is
nadezda [96]

Answer: Whether a particular cost is classified as direct or indirect does not depend on the cost object - <u>FALSE. BECAUSE "A particular cost may be direct or indirect, depending on the cost object".</u>

A direct cost is one that can be easily traced to the particular cost object -<u>TRUE.</u>

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A particular cost may be direct or indirect, depending on the cost object. <u>- TRUE.</u>

8 0
2 years ago
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