The interest rate for the first five years of a $120,000 mortgage is 7% compounded semiannually. Monthly
Question:
a. How much will the amortization period be shortened?
b. What will be the principal balance at the end of the fiveyear term?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
Given PV 120000 i 7 2 35 n 1225 300 c 212 i 2 1 i C ...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions

The interest rate for the first three years of an $80,000 mortgage loan is 7.4% compounded semiannually. Monthly payments are calculated using a 25year amortization. a. What will be the principal...

The interest rate for the first three years of an $87,000 mortgage is 7.4% compounded semiannually. Monthly payments are based on a 20year amortization. If a $4000 prepayment is made at the end of...

For each of the following scenarios, indicate which of the four basic tax planning variables (entity, character, time period, jurisdiction) impacts aftertax value. Note that more than one variable...

For seven? years, France Corporation has been owned entirely by Steve and Maryssa? who are husband and wife? Steve and Maryssa have a $183,000 basis in their jointly owned France stock. The France...

Thirst Quencher sells plastic water bottles to outdoor enthusiasts for $1.25 each. The companys marketing manager prepared the following sales forecast (in units) for the first half of 2009: January...

The figure shows the quadriceps and the patellar tendons attached to the patella (the kneecap). If the tension T in each tendon is 1.30 kN, what is (a) The magnitude (b) The direction of the contact...

What are the major advantages of using EVM as a project control mechanism? What do you perceive as its disadvantages?

The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: a. Substitute this expression for beta into the Security Market Line (SML),...

When calculating the weighted average number of shares outstanding, the number of shares are not timeweighted by the fraction of the reporting period they are (are not) outstanding for. Multiple...

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1,...

Monthly payments on a $150,000 mortgage are based on an interest rate of 6.6% compounded semiannually and a 30year amortization. If a $5000 prepayment is made along with the thirtysecond payment:...

A $100,000 mortgage loan has a 25year amortization. a. Calculate the monthly payment at interest rates of 6%, 7%, and 8% compounded semiannually. b. By what percentage does the monthly payment on...

Profi ts/losses made on sale of fixed assets are to be shown both in fi nancial and cost accounts. true or false

Question: 9. Purchases and sales during a recent period for Bottineau Inc. were Purchases During the Period Sales During the Period 1st purchase 1,500 units x $ 4 1st sale 700 units x $13 2nd...

# The following is a partial relative frequency distribution of consumer preferences for four productsA, B, C, and D. Required: Determine the relative frequency for Product B: Relative Frequency...

Domino Company's operating percentages were as follows: Revenues 100% Cost of goods sold Variable 50% Fixed 10% 60% Gross profit 40% Other operating expenses Variable 20% Fixed 15% 35% Operating...

Marcus Stewart, the production manager at Galvin Company, purchased a cutting machine for the company last year. Six months after the purchase of the cutting machine, Stewart learned about a new...

The TechTeach Company produces and sells 7,000 modular computer desks per year at a selling price of $750 each. Its current production equipment, purchased for $1,950,000 and with a 5year useful...

P Co acquired interests in Silver Co and Amber Co. Their current financial statements are shown below. All figures are in $ unless as otherwise indicated. Fair and book values of identifiable net...

A fastfood restaurant averages 150 customers per hour. The average processing time per customer is 90 seconds. a. Determine how many cash registers the restaurant should have if it wishes to...

The following are in Sanders Company's portfolio of longterm availableforsale securities at December 31, 2006. On December 31, the total cost of the portfolio equaled total fair value. Sanders...

Accounting for Franchise, Patents, and Trade Name Information concerning Sandro Corporations intangible assets is as follows. 1. On January 1, 2010, Sandro signed an agreement to operate as a...

Accounting for R&D Costs during 2008, Robin Wright Tool Company purchased a building site for its proposed research and development laboratory at a cost of $60,000. Construction of the building was...

( Goodwill , Impairment) On July 31, 2010, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the...

Q1) The equity of Washington Ltd at 1 July 2020 consisted of: Share capital 500 000 A ordinary shares fully paid $1 500 000 400 000 B ordinary shares issued for $2 and paid to $1.50 600 000 General...

out The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at...

Exercise 108 Utilization of a constrained Resource [LO105, L0106] Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit...
Study smarter with the SolutionInn App