(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $60000. He paid $25000...
(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $60000. He paid $25000 upfront and agreed to pay the rest over the next 20 years in 20 equal annual payments that include principal payments plus 12 percent compound interest on the unpaid balance. What will these equal payments be? a. Mr. Bill S. Preston, Esq., purchased a new house for $60 000 and paid $25000 upfront. How much does he need to borrow to purchase the house? $ nothing (Round to the nearest dollar.)
Homework Answers
Remaining balance = $60,000 - $25,000 = $35,000
Present value = Annuity * [1 - 1 / ( 1 + r)n] / r
35,000 = Annuity * [1 - 1 / ( 1 + 0.12)20] / 0.12
35,000 = Annuity * [1 - 0.103667] / 0.12
35,000 = Annuity * 7.469444
Annuity = $4,686
Equal payments will be $4,686
Add Answer to:
(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new
house for $60000. He paid $25000...
(Related to Checkpoint 6.1) (Annuity payments) Mr. Bill S. Preston, Esq. purchased a new house for...
(Related to Checkpoint 6.1) (Annuity payments) Mr. Bill S. Preston, Esq. purchased a new house for $70,000. He paid $20,000 upfront and agreed to pay the rest over the next 20 years in 20 equal annual payments that include principal payments plus 15 percent compound interest on the unpaid balance. What will these equal payments be? a. Mr. Bill S. Preston, Esq., purchased a new house for $70,000 and paid $20,000 upfront. How much does he need to borrow to...
(Loan amortizabon) Mr. Bill S. Preston, Esq. purchased a new house for $160,000. He paid $10.000...
(Loan amortizabon) Mr. Bill S. Preston, Esq. purchased a new house for $160,000. He paid $10.000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments plus 12 percent compound interest on the unpaid balance. What will these equal payments bo? The equal payments will be $ (Round to the nearest cent)
Mr. Bill S.Preston purchased a new house for $80,000. He paid $20,000 upfront on the down...
Mr. Bill S.Preston purchased a new house for $80,000. He paid $20,000 upfront on the down payment and agreed to pay the rest over the 25 years in 25 equal annual payments that include principal payments plus 7 percent compound interest on the unpaid balance. What will these equal payments be? 2. What is the present value of an annuity of $80 received at the beginning of each year for the next six years? The first payment will be received...
.-3. juu ting annuity payments) (Related to Checkpoint 6.1 on page 196) James Har- rison bought a house for £180,00...
.-3. juu ting annuity payments) (Related to Checkpoint 6.1 on page 196) James Har- rison bought a house for £180,000. He paid £20,000 upfront from his savings and took a mortgage to pay the rest for 25 years. The mortgage was to be paid in 25 equal annual installments that included both principal and interest. This mortgage charged 6 percent compound interest on unpaid balance. What will his annual installments be?
(Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take...
(Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take out a $150,000, 20 year, 12 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 12 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $ (Round to the nearest cent.)
question from 1 through 6 • value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an or...
question from 1 through 6
• value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an ordinary annuity Calculate the future valu edback the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10...
Marion Boats Fred Cunningham was a fire truck salesman for many years, while Bill, his brother,...
Marion Boats Fred Cunningham was a fire truck salesman for many years, while Bill, his brother, worked as a book salesman for a major publishing house. Although they had done fairly well financially, they wanted to "be their own bosses," so they decided to go into business together. They agreed that selling small fishing and recreational boats would be a good line for them to go into as both had been interested in fishing and boating for many years. Also,...
question 1 please Marion Boats, Inc. ruck salesman for many years, while Bill, his brother, worked...
question 1 please
Marion Boats, Inc. ruck salesman for many years, while Bill, his brother, worked a book salesman for a major publishing house. Although they had done fairly well financially. Fred Cunningham was a fire t they wanted to "be their own bosses," so they decided to go into business together They agreed that selling small fishing and recreational boats would be a good line for them to Also, the small town Marion, Mississippi, where they lived, did not...
Q 29,30,32,34,35 e present value of the cash flows? Sent is the discutate, what is the...
Q 29,30,32,34,35
e present value of the cash flows? Sent is the discutate, what is the present value of 000 payments the end of each of the next 19 flows? If 20 percent is the discount at what is the recent value of the discount rate, what is the value of this stream of 6-29. Calculating the future value of an an t he future value of an an that pays 8.000 a year for 10 years at 6 percent...
I need all of the following journal entries done Date Transaction No. Jay opened two accounts...
I need all of the following journal entries done
Date Transaction No. Jay opened two accounts at Union Stale Bank, using S3,000 of his own moncy. He deposited $2,500 in a checking account and $500 into savings 7:1 1 Jay borrowed S6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus acCrued interest on the first day of cach month. Jay put $4,500 into his...
(Related to Checkpoint 6.1) (Annuity payments) Mr. Bill S. Preston, Esq. purchased a new house for $70,000. He paid $20,000 upfront and agreed to pay the rest over the next 20 years in 20 equal annual payments that include principal payments plus 15 percent compound interest on the unpaid balance. What will these equal payments be? a. Mr. Bill S. Preston, Esq., purchased a new house for $70,000 and paid $20,000 upfront. How much does he need to borrow to...
(Loan amortizabon) Mr. Bill S. Preston, Esq. purchased a new house for $160,000. He paid $10.000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments plus 12 percent compound interest on the unpaid balance. What will these equal payments bo? The equal payments will be $ (Round to the nearest cent)
Mr. Bill S.Preston purchased a new house for $80,000. He paid $20,000 upfront on the down payment and agreed to pay the rest over the 25 years in 25 equal annual payments that include principal payments plus 7 percent compound interest on the unpaid balance. What will these equal payments be? 2. What is the present value of an annuity of $80 received at the beginning of each year for the next six years? The first payment will be received...
.-3. juu ting annuity payments) (Related to Checkpoint 6.1 on page 196) James Har- rison bought a house for £180,000. He paid £20,000 upfront from his savings and took a mortgage to pay the rest for 25 years. The mortgage was to be paid in 25 equal annual installments that included both principal and interest. This mortgage charged 6 percent compound interest on unpaid balance. What will his annual installments be?
(Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take out a $150,000, 20 year, 12 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 12 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $ (Round to the nearest cent.)
question from 1 through 6
• value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an ordinary annuity Calculate the future valu edback the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10...
question 1 please
Marion Boats, Inc. ruck salesman for many years, while Bill, his brother, worked a book salesman for a major publishing house. Although they had done fairly well financially. Fred Cunningham was a fire t they wanted to "be their own bosses," so they decided to go into business together They agreed that selling small fishing and recreational boats would be a good line for them to Also, the small town Marion, Mississippi, where they lived, did not...
Q 29,30,32,34,35
e present value of the cash flows? Sent is the discutate, what is the present value of 000 payments the end of each of the next 19 flows? If 20 percent is the discount at what is the recent value of the discount rate, what is the value of this stream of 6-29. Calculating the future value of an an t he future value of an an that pays 8.000 a year for 10 years at 6 percent...
I need all of the following journal entries done
Date Transaction No. Jay opened two accounts at Union Stale Bank, using S3,000 of his own moncy. He deposited $2,500 in a checking account and $500 into savings 7:1 1 Jay borrowed S6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus acCrued interest on the first day of cach month. Jay put $4,500 into his...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 1 hour ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 3 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 3 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 5 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 5 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 5 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 5 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 5 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 5 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 5 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 5 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 5 hours ago