Calculate the monthly payment for a 20 year mortgage on a farming operation in Gates County,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculate the monthly payment for a 20 year mortgage on a farming operation in Gates County, NC. The cost of the farm was $900,000 and you put 10 percent down. The bank is charging you 6 % interest, compounded monthly. Given the situation above, suppose that the interest rates drop to 5 % after five years. You can get a new 15 year mortgage for $2,000 fee at that new rate plus 2 points that you would have the bank finance. Should you refinance? What would your new payment be? Calculate the monthly payment for a 20 year mortgage on a farming operation in Gates County, NC. The cost of the farm was $900,000 and you put 10 percent down. The bank is charging you 6 % interest, compounded monthly. Given the situation above, suppose that the interest rates drop to 5 % after five years. You can get a new 15 year mortgage for $2,000 fee at that new rate plus 2 points that you would have the bank finance. Should you refinance? What would your new payment be?
Expert Answer:
Answer rating: 100% (QA)
1 Time in years Cast of farm Interest rate 006 loan amount B3134 Down payme... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Calculate the monthly payment and the total interest Huliett would have to pay if he decided to make the loan for 30 years instead of 15 years?
-
Determine the monthly payment for a thirty-year real estate loan with an annual percentage rate of 8.5% and an initial principal of $200,000. How much interest is paid over the life of the loan?
-
Determine the monthly payment for a sixty-month truck loan with an annual percentage rate of 11% and an initial principal of $17,000. How much interest is paid over the life of the loan?
-
In MySQL, Useing ClassicModels database below, how do I script it to display ProductLine total_sales by region like this; a. Region-1 i. Productline-1 ---- Total Sales ii. Productline-2 ---- Total...
-
What are some implications of resource allocation when an organization is involved in several projects at once?
-
Within each set, which compound should show NMR absorptions with the greater chemical shifts? Explain your choices. (1) (2)
-
Read about the \(\$ 100\) million Equity Funding reinsurance fraud using the Internet. Summarize the fraud scheme.
-
The unadjusted trial balance of Lakota Freight Co. at March 31, 2014, the end of the Current year, is shown below. The data needed to determine year-end adjustments are as follows: a. Supplies on...
-
I. If all else is constant, a bond will sell at _____ when the yield to maturity is _____ the coupon rate Choices a premium; higher than at par; less than at par; higher than a discount; h...
-
Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these...
-
It is said that the entire financial fortune of the British Empire can be computed using the compound rate of interest shown in the data table in row 4 applied to the gold that the English stole from...
-
Explain each theory separately taking note of its application towards Product decisions and its benefits; Relate the following decision making theories to conduct a study to improve Product...
-
The risk - free rate is 1 . 4 9 % and the market risk premium is 5 . 3 7 % . A stock with a \\ beta of 1 . 1 7 just paid a dividend of $ 2 . 5 2 . The dividend is expected to grow at 2 4 . 3 2 % for...
-
8. A company is offered a $20 million line of credit with a monthly interest rate of 0.5% on any funds actually borrowed. The company would also be required to maintain a 5% compensating balance on...
-
8 1 . How much money would you have to invest today at 4 % in order to have $ 2 0 0 , 0 0 0 fifteen years from now so that you can pay your health care costs when you retire?
-
CarFind Inc. showed the following equity information at December 3 1 , 2 0 2 2 . Common shares, unlimited shares authorized; 6 , 0 0 0 , 0 0 0 shares issued and outstanding $ 1 , 2 5 2 , 5 0 0 ...
-
IS310 Second Assignment Refer to the traffic congestion cost table as the primary source of your observations, and do the followings; ONLY TYPED COPY IS ACCEPTED 1. Summarize the cost by calculating...
-
Define cultural intelligence. Cite the books or journal articles you found in Capella's library. Explain why cultural intelligence is important for HR practitioners and other organizational managers.
-
1. Summarize how education level and age affect income. 2. What two techniques can be used to place monetary values on employee benefits? 3. Choose three career advancement tips and explain how each...
-
Julia has been thinking about the purchase of a boat. As a teenager, she was an avid water skier at her parents summer home. Now that she has moved away, she wants to renew her hobby at a lake...
-
Bang Liu passed away recently at age 67. Among his assets where the following items. 1) Checking and savings accounts with a total balance of $45,000 with his widow, Fen, held in joint tenancy with...
-
At the date of acquisition, consolidation eliminating entry (R) credits the noncontrolling interest in Starfruit Company in the amount of On January 1, 2015, Pomegranate Company acquired 90% of the...
-
On the 2017 consolidation working paper, eliminating entry (R) reduces the Investment in Starfruit by On January 1, 2015, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...
-
If Pomegranate follows IFRS and uses the alternative method of valuing the noncontrolling interest, at the date of acquisition the noncontrolling interest in Starfruit appears in the equity section...
Study smarter with the SolutionInn App