Able Inc. sells a new product with a 2-year warranty. The company estimates that during the two years, the costs and related probabilities are: Year 1: $10,000 (20%) and $20,000 (80 % ); Year 2: $15,000 (50 %) and $25,000 (50 %). The company's effective interest rate is 4%. Assuming the warranty costs are settled at the end of Years 1 and 2, calculate the estimated warranty liability using the expected cash flow method.

Munabhai

A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment > 2 D TRENE VAR TVUNG S 2006- E - E

A vehicle can be purchased by paying $18,000 now, or it can be leased by paying $515 per month for the next three years, with the first payment due on the day of signing the lease. What nominal annual rate of interest compounded monthly is charged on the lease?

Lea borrows PhP 100,000 at an annual effective interest rate of 4% and agrees to repay it with 30 level annual instalments paid at the end of each year. At the end of 10 years, Lea has the option to repay the entire loan with a final payment X, in addition to the regular payment. This will yield the lender an annual effective interest rate of 4.5% over the 10 year period. Calculate X.

A firm acquires a warehouse costing $60,000 on January 31. The firm makes a down payment of $7,000 and assumes a 20 year, 6% mortgage for the balance. Interest is payable on January 31 each year. If interest payment on mortgage is recognized on february 28th of the same year, what will be the interest payable.

The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a mortgage of $136,000.00 amortized over 15 years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage agreement, the Taylors increased the rounded monthly payment by 10%. How many fewer payments will the Taylors need to make to amortize the mortgage by increasing the payments? Select one: O a. 35 payments O b. 71 payments 18 payments O d. 114 payments

Locust Inc. owes ​$20,000.00 to be repaid by monthly payments of ​$510.00. Interest is 6​% compounded monthly. ​(a) How many payments will Locust Inc. have to​ make? ​(b) How much interest is included in the 10th ​payment? ​(c) How much of the principal will be repaid in the 9th payment​ period? ​(d) Construct a partial amortization schedule showing details of the first three​ payments, the last three​ payments, and totals.

A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment

Ali borrows RM240,000 at 8% for a mortgage for 15 years. Prepare an annualamortization table assuming the first payment is due January 30, 2010, exactly 30 days after the loan.