Aaron is planning to get a loan for a house costing $320,000. He plans to make...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Aaron is planning to get a loan for a house costing $320,000. He plans to make a downpayment of 15% pf the cost of the house. The bank's rate is 4.25% p.y.c.d. over 30 years. He expects to make regular month-end payments. Every 12 months, he will also make an extra payment when he gets his annual bonus payment. His first extra payment will be $2,000 and it will increase by 4% every year. What will his last 2 payments be? Aaron is planning to get a loan for a house costing $320,000. He plans to make a downpayment of 15% pf the cost of the house. The bank's rate is 4.25% p.y.c.d. over 30 years. He expects to make regular month-end payments. Every 12 months, he will also make an extra payment when he gets his annual bonus payment. His first extra payment will be $2,000 and it will increase by 4% every year. What will his last 2 payments be?
Expert Answer:
Answer rating: 100% (QA)
Loan amount cost 320000 Down payment is 15 of the loan amount 320000153200000152720003200... View the full answer
Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0133836790
11th edition
Authors: Frederic S. Mishkin
Posted Date:
Students also viewed these finance questions
-
If you were going to get a loan to purchase a new car, which financial intermediary would you use: a credit union, a pension fund, or an investment bank?
-
Connecticut Advanced Technologies (CAT) is planning to get a 30-day $150,000 simple interest loan from its bank. The quoted interest rate on the loan is 10 percent. Calculate the APR and r EAR...
-
Aaron deposited $900 every 6 months for 20 years into a fund paying 5.5% compounded semi-annually. Five years after the last deposit, he converted the existing balance in the fund into an ordinary...
-
Given are five observations for two variables, x and y. a. Develop a scatter diagram for these data. b. What does the scatter diagram developed in part (a) indicate about the relationship between the...
-
A doughnut shop makes three basic types of doughnuts: cream filled, chocolate filled, and jam filled. The doughnut shop manager is analyzing the product mix and has collected the following...
-
Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a....
-
On December 31, 2017, Blair Company issued \(\$ 600,000\) of 20 -year, 11 percent bonds payable for \(\$ 554,861\), yielding an effective interest rate of 12 percent. Interest is payable semiannually...
-
Brown Enterprises uses a word processing computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with...
-
A material requirements planning system generates output reports such as bill of material, inventory and purchase records, and lead times for each item. True False
-
Solve the structures in Figures P5-16 through P5-18 by using substructuring. Figure P5-16 (Substructure the truss at nodes 3 and 4) Figure P5-17 (Substructure the beam at node 3) Figure P5-18...
-
The total calls reduced in operational 2 workgroup. In total 2020 and 2021 calls were down by 10% compared to each of their previous years. Despite all these factors cost of calls for service has...
-
Imagine you have been asked to write an article for an academic journal on the complexities of schizophrenia spectrum disorders. (Don't read too much into this, it's just a paper) word article on the...
-
Define social media. ( 20 points ) How has social media changed the way marketers and consumers communicate with one another? Explain the implications for marketers. Describe how marketing managers...
-
If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1? Beginning balance of supplies $
-
Jenny Abrams serves as the health care administrator at Brookside Hospital, a privately owned,250-bed facility located in a rural town in West Virginia. It is 7:00 a.m. on a Thursday, and Ms.Abrams...
-
Indigo Delights manufactures a wide variety of holiday and seasonal decorative items. Indigo's activity-based costing overhead rates are: Purchasing $401 per order Storing $2 per square foot/days...
-
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:...
-
(a) How far away can a human eye distinguish two ear headlights 2.0 m apart? Consider only diffraction effects and assume an eye pupil diameter of 5.0 mm and a wavelength of 550 nm. (b) What is the...
-
If the British central bank lowers interest rates to reduce unemployment, what will happen to the value of the pound in the short run and in the long run?
-
What is the key assumption underlying the Fed's ability to control the real interest rate?
-
"The federal funds rate can never be below the interest rate paid on reserves." Is this statement true, false, or uncertain? Explain your answer.
-
Global Enterprises Corporation (GE) is a manufacturing company whose principal products are microwave ovens, refrigerators, and conventional ovens. The company had a long history of selling...
-
The 2015 annual report of The Procter & Gamble Company (P&G is available at www.pginvestor.com. After reviewing P&Gs annual report, respond to the following questions: P&Gs consolidated balance sheet...
-
The consolidated financial statements of General Electric Company (GE) combine the industrial manufacturing and services businesses of GE with the financial services businesses of General Electric...
Study smarter with the SolutionInn App