Over the past 40 years, interest rates have varied widely. The rate for a 30-year mortgage reached a high of 14.75% in July 1984, and it reached 3.31%, in November 2012. A significant impact of lower interest rates on society is that they enable more people to afford the purchase of a home. We consider the purchase of a home that sells for $125,000. Assume that we can make a down payment of $25,000, so we need to borrow $100,000. We assume that our annual income is $45,000 and that we have no other debt. We determine whether we can afford to buy the home at the high and low rates. What is our monthly income? Enter all answers rounded to the nearest cent. monthly income: $ Lending agencies usually require that no more than 28% of the borrower's monthly income be spent on housing. How much does that represent in our case? 28% of monthly income: $ The amount we will spend on housing consists of our monthly mortgage payment plus property taxes and hazard insurance. Assume that property taxes plus insurance total $260 per month, and subtract this from 28% of our monthly income to determine what monthly payment we can afford. affordable monthly payment: $ Using your previous answer, determine how much we can borrow if the term is 30 years and the interest rate is at the historic high of 14.75%. Can we afford the home? affordable mortgage with high interest: $ Using your previous answer, determine how much we can borrow if the term is 30 years and the interest rate is 3.31%. affordable mortgage with low interest: $ In which situations can the $100,000 be afforded? A)With high interest only B)With low interest only C)Only if there is no interest charged D)With both high interest and low interest What is the difference in the amount we can borrow between the rates used previously?

Edit View History Bookmarks Profiles Tab Window Help t Fridays - Become a w x sp MyPath - Home Gradebook / ACC 202: Manage X M Question 7 - Chapter 11 Home X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Felearning.kctcs.edu%252Fultra%252F Maps News Translate M SmartBook 2.0 M SmartBook 2.0 Homework i t Perez Company is considering an investment of $28,245 that provides net cash flows of $9,300 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A What is the internal rate of return of this investment? Present value factor Internal rate of return FI Required B @ 2 F2 # 3 APR…

Chrome File Edit View History Bookmarks People Window Help 52% !), Wed 3:48 PM d : The Charge Flas Sigma Chi-Initi My Questions l l (7) YouTube | Bb] Syllabus-ROST G where to find sc X x Х Χ Chapter 1 Home ← → C https://newconnect.mheducation.com/flow/connect.html?returnUrl=https%3A%2F%2Fconnect.mheducation.com%2Fpaamweb%2Findex.html%.··d-☆ . Chapter 1 Homework - Graded Saved Help Save & Exit Submit Check my work 4 Required: Use only the appropriate accounts to prepare an income statement. 7 points COWBOY LAW FIRM Income Statement For the Period Ended December 31 eBook etained earnings Hint ervice revenue Ask Expenses Salaries expense Print References Total expenses Mc Graw Hill KPrev4 of 11 Next>

- Homework A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Ffaytechcc.blackboard.co... E User Management,.. H https://outlook.offi.. O FES Protection Plan System 7- North C.. 用Re mework Exercises i Soved Help Save & Exit Submit Check my work Required: Record the following transactions of Fashion Park in a general journal, Fashion Park must charge 6 percent sales tax on all sales. The company uses the perpetual inventory system. (Round your intermediate calculations and final answers to the nearest whole dollar value.) DATE TRANSACTIONS 20X1 Sold merchandise for cash, $2,540 plus sales tax. The cost of merchandise sold was $1,540. The customer purchasing merchandise for cash on April 2 returhed $270 of the merchandise; provided a cash refund to the customer. The cost of returned merchandise was $170. Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,090 plus tax, terms n/30. The cost of the merchandise sold was…