Question: IN THE FORMULA BELOW, WHAT DOES THIS (0.777/12) REPRESENT AND HOW DID YOU GET IT? WHY NOT USE THE 7.75%? I need to know the

IN THE FORMULA BELOW, WHAT DOES THIS (0.777/12) REPRESENT AND HOW DID YOU GET IT? WHY NOT USE THE 7.75%? I need to know the formula used to find the answer of $9036.25 to the following question. Thank you The McDonald Group purchased a piece of property for $1.2 million. It paid a down-payment of 20% in cash and financed the balance. The loan terms require monthly payments for 15 years at an annual percentage rate of 7.75% compounded monthly. What is the amount of each mortgage payment? Amount finance = 1 200 000 x(1-.2)=960 000 960 000 = c x [ 1-(1/1+0.0775/12)^15 x12 / 0.777/12 ] 960 000 = c x 106.238 C=9036.25 this is the solution

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

This case is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement...

ISN'T THIS THE CORRECT FORMULA TO GET THE CORRECT ANSWER? 960000 = C x [1-(1/1+0.0775/12)^15X12]/0.0775/12 960000= C x [1-.3138744611]/0.0775/12 960000 = c X .6861255389/0.0064583333 960000 X...

Please answer all questions to the best of your ability. a 1. In the context of channel flows, logistics involves the management of All of the flows b. Only the information flows c. None of the major...

The best definition for nonparametric statistics I can think of is when data does not fit inside the normal parameters of a normal distribution, it calls for the use of this statistical method....

UNIT 5 QZ, Q-20 UNIT 5 / UNIT 8 QUESTIONS KEEP ANSWERS SEPARATE BY UNITS UNIT II STUDY GUIDE Consumer Mathematics Reading Assignment See information below. Key Terms 1. Add-on interest method 2....

12:38 4 Assignment Details MTH 154-N41A: Quantitative Reasoning (SP21) MTH 154 Excel Project In this major project, you will create an Excel file and answer questions about linear and exponential...

Discussion Board Week 2 1. "Estimating Demand and Its Elasticities" and Statistical Estimation of the Demand Curve During the Weekly Scenarios Herb Jones, a graduate student and part-time data...

MATHEMATICIANS RISE TO A CHALLENGE ne of the theorems we teach in eighth grade is a + b= *, where c is the length of the hypotenuse of a right triangle in Euclidean space, and a and b are the lengths...

please summarize per sub little thank you Tittle 2 quality control basics Subtitle 1: defining of quality Quality, such a loaded word, it's supposed to signity excellence, but really, it doesnt mean...

HR How to ensure machine learning algorithms do not learn the same mistakes and biases that currently affect the recruiting process? 8 RECRUITMENT In this chapter we will turn our attention to the...

HR Will an Artificial Intelligence-based system be able to recruit more accurately than managers? What are the potential advantages and risks of automated recruiting? 8 RECRUITMENT In this chapter we...

Which of the given is not true of an image formed by a plane mirror ? (a) It is erect (b) It is virtual (c) It is diminished (d) It is at the same distance as the object

Bea, Wade, and Freya agree to sell construction tools for a period of one month. Bea agrees to construct a stand on the front of the lawn of Freya. Freya will be paid $2,500 for cleaning up the lawn...

Detail any adjustments or modifications made to the financial plan over the course of the semester. Explain the reasons behind these changes, whether they were prompted by new insights, unforeseen...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Technology. The owner of your company recently purchased two pairs of season tickets for the local symphony orchestra concerts. He will retain one pair of tickets but make the other available to...

On July 1, you relocated your business from one Detroit suburb to another. A month prior to your move, you phoned your security system provider and notified its representative to cancel your service...

Technology. Brenda Durwood, one of your employees and president of the Woodland Ski and Snowboard Club,has requested permission to hold the clubs annual Gear Swap fund-raiser in the company parking...