What is the EAC to keep a piece of new equipment operating? The warranty covers repair costs for the first 2 years, but expected repair costs are $1500 per year for the rest of the 7-year life. Normal maintenance is expected to cost $1800 annually. There is an overhaul costing $8500 at the end of year 4. The firm’s interest rate is 8%
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
What is the EAC to keep a piece of new equipment operating? The warranty covers repair costs for the first 2 years, but expected repair costs are $1500 per year for the rest of the 7-year life. Normal maintenance is expected to cost $1800 annually. There is an overhaul costing $8500 at the end of year 4. The firm’s interest rate is 8%
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- Tyrone Company wants to purchase a property that costs $150,000. The full amount needed to finance the purchase can be borrowed at 12% interest. The terms of the loan require equal end-of-year payments for the next 6 years. Determine the total annual loan payment.ABC mortgage is to obtain a facility amounting to $200000 to be repaid over a period of 20 years at an annual rate of 10%.Help the company to; 1. Compute monthly mortgage payment for this loan 2. Amortize the mortgage loan for the first one year 3. Suppose the mortgage is paid off after one year, how much will be paid to clear the mortageA property is available for sale that could normally be financed with a fully amortizing $82,000 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $745.13 per month. The builder is offering buyers a mortgage that reduces the payments by 50 percent for the first year and 25 percent for the second year. After the second year, regular monthly payments of $745.13 would be made for the remainder of the loan term. Required: a. How much would you expect the builder to have to give the bank to buy down the payments as indicated? b. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available? Complete this question by entering your answers in the tabs below. Required A Required B How much would you expect the builder to have to give the bank to buy down the payments as indicated? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Down…
- A property is available for sale that could be financed with a fully amortizing $250,000 loan at 8% with a monthly payment over 30 years. The builder is offering buyers a mortgage that reduces the payment by 20% for first and second year. After the second year, regular payment would be made for the remainder of the loan term. What is the first-year monthly payment for buyer? 1467.53 1657.32 1723.56A property is available for sale that could normally be financed with a fully amortizing $81,200 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $737.87 per month. The builder is offering buyers a mortgage that reduces the payments by 50 percent for the first year and 25 percent for the second year. After the second year, regular monthly payments of $737.87 would be made for the remainder of the loan term. Required: a. How much would you expect the builder to have to give the bank to buy down the payments as indicated? b. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available? Complete this question by entering your answers in the tabs below. Required A Required B How much would you expect the builder to have to give the bank to buy down the payments as indicated? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Down…A property is available for sale that could normally be financed with a fully amortizing $80,200 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $728.78 per month. The builder is offering buyers a mortgage that reduces the payments by 50 percent for the first year and 25 percent for the second year. After the second year, regular monthly payments of $728.78 would be made for the remainder of the loan term. Required: a. How much would you expect the builder to have to give the bank to buy down the payments as indicated? b. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available?
- Your company borrows $500,000 from a bank to finance the purchase of a new machine. The nominal annual Interest rate Is 8%. The loan is to be fully amortized over 2 years, with equal payments made at the end of each 6-month perlod. 1. What will be the total amount of loan principal repald during the entire first year? 2. What will be the total amount of Interest pald during the entire second year? (Note: For each question, please show detalled explanations as to how you proceed to your answer along with detailed calculations).A property is available for sale that could normally be financed with a fully amortizing $80,600 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $732.41 per month. The builder is offering buyers a mortgage that reduces the payments by 50 percent for the first year and 25 percent for the second year. After the second year, regular monthly payments of $732.41 would be made for the remainder of the loan term. Required: a. How much would you expect the builder to have to give the bank to buy down the payments as indicated? b. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available? Complete this question by entering your answers in the tabs below. Required A Required B How much would you expect the builder to have to give the bank to buy down the payments as indicated? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Down…A contractor's price for a new building was $116,000. You decide to buy the building, making a payment of $23,200 down and financing the balance by making equal payments at the end of every 6 months for for 6 years. Interest is 5.4% compounded semi-annually. 10 What is the size of the semi-annual payment that is required to pay of the mortgage in 6 years 1 2 _3 14 15 16 b Create an amortization table Principal 17 # Payment amt interest paid paid Balance 18 19 20 21 22 23 24 25 26 27 28 29 30 For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? Interest 31 1.5 32 33 Repaid Principle 34 Balance For the second pavment period, how much interest is paid, how much Q2 Costs & Profits Q Taxes Q3 Credit card payment & int Q4 Mortgages Ready
- A machine selling for $10000 may be purchase by paying a $1000 deposit and the balance in equal monthly installments for 3 years. Find these monthly installments if the cost of financing is 18% per year.In order to purchase another truck, Beatty Transport recently obtained a $125,000 loan for five years at 7.8% compounded semiannually. a. What are the monthly payments on the loan? b. The company is considering selling the truck at the end of 3 years and paying off the balance of the loan. What should the monthly payments be so that the value of loan at the end of the first 3 years is $55,000?A contractor’s price for a new building was $96,000. You decide to buy the building, making a payment of $12,000 down and financing the balance by making equal payments at the end of every 6 months for 12 years. Interest is 7.3% compounded semi-annually. B) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment? how much interest is paid how much of the principal is repaid what is the loan balance? C) For the fifteen payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment? how much interest is paid how much of the principal is repaid what is the loan balance?