Holding imported items to a high quality is called

Tom and cindy lewis are buying a house with a $300,000 sales price and their ltv will be 80%. assume that they paid no originati

dlinn [17]

Answer: Tom and Cindy paid 1.5 discount points.

House Value = $300,000.

Loan-to-Value Ratio (LTV) = 80%

Since LTV is 80%, the total loan (mortgage) value is :

$Mortgage Value = House Value * LTV$

$Mortgage Value = $240,000 (300,000*0.80)$

In the real estate context, a point refers to one percent (1%) of the mortgage amount. There is no rule that these points should be in whole numbers.

We can find the number of points paid as follows:

$No. of points paid = (Value of points in dollars /Value of mortgage) *100$

$No. of points paid = (\frac{3600}{240000} )* 100 [/tex][tex] No. of points paid = 1.5 points.$

There are two types of points:

Discount Points: are actually pre-paid interest on the mortgage loan, and help in lowering the interest rate on the mortgage.
Origination points : help in covering the costs incurred by the lender in processing the loan.

7 0

2 years ago

Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. A

Yakvenalex [24]

Answer:

a. Julie should continue live in her own apartment.

b. She should then purchase the condo

c. Home maintenance cost and tax benefit.

d. She should live in her own apartment and rent the condo after purchase.

Explanation:

Buying cost of condo $175,000

Loan interest amount $8,400 [ $175,000 * 80% * 6%]

Insurance premium $10 [560 - 550]

Property taxes $1,000

Maintenance expense $875 [$175,000 * 0.5%]

Total additional cost per year $10,280

If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.

b. If the price of condo increases by 3.5% per year then she should consider buying the condo.

5 0

2 years ago

Bradley is watching an interesting TV program with a group of friends. During the commercial break, he is unable to concentrate

ELEN [110]

Answer:

b. disturbances known as noise.

Explanation:

In the scenario given the question, Bradley can't focus on ads because his friends are discussing the TV program. Bradley is unable to focus on commercial breaks as others are constantly discussing something else.

Their friends act disturbingly or verbally, acting as a hindrance.

so that as scenario of the question,

The correct answer is b. disturbances known as noise.

4 0

2 years ago

Crises that are caused by volatile international financial flows are in large part __________ advances in technology coupled wit

vekshin1

Crises that are caused by volatile international financial flows are in large part PAYMENT advances in technology coupled with GREATER openness in financial market. This is because, financial capital is very volatile and technological advances has enhanced this volatility. Lack of transparency and poor and corrupted governance can intensify the crises.

3 0

2 years ago

A company issued 5-year, 7% bonds with a par value of $500,000. The market rate when the bonds were issued was 6.5%. The company

san4es73 [151]

Answer:

The correct answer is $17,000.

Explanation:

According to the scenario, the given data are as follows:

Bonds percent = 7%

Par value of bonds = $500,000

Market rate = 6.5%

Cash received = $505,000

So, we can calculate the amount of recorded interest for semiannual interest period by using following formula:

First we calculate the premium on bonds,

So, Premium on bonds = Cash received - Par value of bonds

= $505,000 - $500,000

= $5,000

So, straight line amortization = Premium on bonds ÷ years

= $5,000 ÷ 5

= $1,000

So, Amount of interest expense for first semiannual is as follows:

Amount of interest = ( Par value of bonds × Bonds percent ) ÷ 2 - (straight line amortization ÷ 2)

= ( $500,000 × 7% ) ÷ 2 - ( $1,000 ÷ 2 )

= $17,500 - $500

= $17,000.

4 0

2 years ago