When a mortgage payment is made, a portion of it is applied to interest, and the balance

Question:

When a mortgage payment is made, a portion of it is applied to interest, and the balance is applied to reduce the principal. How is the amount applied to reduce the principal computed?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

See More Books

Question Posted: Dec 30, 2011 04:56 AM

See More Questions

The average monthly mortgage payment including principal and interest is $982 in the United States. If the standard deviation is approximately $180 and the mortgage payments are approximately...
When will a mortgage servicer not advance payments for principal and interest?
How is goodwill computed if fresh start accounting is applied to a reorganized company?
Strike Bowling installs automatic scorekeeping equipment with an invoice cost of $180,000. The electrical work required for the installation costs $8,000. Additional costs are $3,000 for delivery and...
Utilitarianism is a deceptively simple moral theory that has quite a bit of intuitive appeal. But it also has its share of problems. How plausible do you find this account of the right making feature...
Discuss why Microsoft SharePoint is considered a workspace. What kind of collaboration does it support?
Find the finite difference solution of the problem \[\begin{aligned}& \frac{\partial^{2} u}{\partial x^{2}}=\frac{\partial u}{\partial t} \quad 0 by the explicit method. Plot the solution using...
Lessack Auctioneers advertised an auction sale that was open to the public and was to be conducted with reserve. Gordon attended the auction and bid $100 for a work of art that was worth much more....
Determine whether these are valid arguments. a) If x is a positive real number, then x is a positive real number. Therefore, if a is positive, where a is a real number, then a is a positive real...
The radio music listener market is diverse. Listener formats might include adult contemporary, album rock, top 40, oldies, rap, country and western, classical, and jazz. In targeting audiences,...
What is the difference between a note payable and a mortgage payable?
If a lease is recorded as a capital lease, what is the relationship of the lease payments and the lease liability?
Find the Fourier transforms of these functions: (a) f(t) = et cos(3t + )u(t) (b) g(t) = sin t[u(t + 1) - u(t - 1)] (c) h(t) = e2t cos tu(t - 1) (d) p(t) = e2t sin 4tu(-t) (e) q(t) = 4 sgn(t - 2) +...
You buy an apartment at $500,000 that you expect to rent for $2500 a month and sell at $600,000 in 5 years. If the property is fairly valued at purchase now, what is the rate of return that justifies...
a. Which financial ratios category offers the best "picture" of an organization's condition? Why? b. Which one financial ratio offers the truest snapshot of how an organization is performing? Why? c....
Describe a situation that you or a corporate might accept a project where costs are greater than the benefits?
juan takes out a 10 year unsubsidized loan to finish up the last 3 years and 6 months of college. payments are deferred for another 6 months after graduation. if he borrowed $6,600 at 6.6% interest,...
Your company has asked you to do preliminary analysis on a new four year project. The project would increase projected sales by $120,000 each year for four years. The project would have annual costs...
The financial statements for Apple Inc. are presented in Appendix A. Instructions Answer these questions using the Statement of Operations. a. What was the percentage change in net sales and in net...
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
Which of the following is a general property of an acidic solution? (a) Tastes sour (b) Turns litmus paper red (c) pH less than 7 (d) Neutralizes bases (e) All of the above.
a. Evaluate the accounting for investments when holding between 20 and 50% of equity securities of an investee from the view of an analyst of financial statements. b. When are losses in noncurrent...
Describe weaknesses and inconsistencies in accounting for noncurrent security investments that are relevant for analysis purposes.
Give an example of a cash flow hedge and an example of a fair value hedge.
Hinrich Company traded machinery with a book value of $120,000 and a fair value of $200,000. It received in exchange from Noach Company a machine with a fair value of $180,000 and cash of $20,000....
You have just moved from Norfolk, Virginia (sea level), to Taos, New Mexico (high in the mountains), and you find yourself out of breath climbing a small hill. Three months later, climbing the same...
Starline is a small children's clothing manufacturer and retailer that has seen rapid growth in the last twelve months and a significant increase in employees. At a meeting of managers, a number of...

When a mortgage payment is made, a portion of it is applied to interest, and the balance

Question:

Step by Step Answer:

For each mortgage payment a portion is interest and the remainder is appl...View the full answer

Accounting concepts and applications

Students also viewed these Accounting questions