The price of a home is $210,000. The bank requires a 5% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. a. Find the required down payment. b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? d. Find the total cost of interest over 30 years, to the nearest dollar.

Answer:

a.$31,500

b.$178,500

c.$5355

d.$ 249,021.60  

Explanation:

The down payment is 15% of the price of the home=15%*$210,000=$31500

Amount of mortgage=price of the home-down payment

                                  =$210,000-$31,500=$178,500

Amount to  be paid for 3 points at closing =3%*amount of mortgage

                                                                      =3%*$178,500=$5355

Note that 1 point costs 1 percent of mortgage amount

The amount of repayment monthly can be computed thus:

=pmt(rate,nper,-pv,fv)

rate  is the fixed mortgage of 7%/12

nper is 30 years multiplied by 12=360 months

pv is the mortgage amount of $178,500

fv is the total of mortgage amount and total interest,it is not known

=pmt(7%/12,360,-178500,0)=$ 1,187.56  

Total interest cost=total payment-mortgage amount=($ 1,187.56*360)-$178,500 =$ 249,021.60  

Which one of the following statements regarding disclosure is true?
1. The seller and licensees need not disclose to a prospective buyer the manner or occurrence of an occupant's death in the home if it occurred within the past three years.
2. HIV/AIDS cannot be disclosed even when asked; by law HIV/AIDS are not material facts that require disclosure.
3. If an occupant died of AIDS or an AIDS-related syndrome within the past three years, that fact must be disclosed to a prospective buyer.
4. If asked by a prospective buyer if an occupant died of AIDS or an AIDS-related syndrome within the last three years, the seller or licensee must reply truthfully if known.

The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Xavier Co. wants to purchase a machine for $36,300 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,300 in each of the four years. What is the machine's net present value

Neptune Corporation owns 70 percent of Pluto Company's stock. On July 1, 20X4, Neptune sold a piece of equipment to Pluto for $56,350. Neptune had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.


79.


Required information


Based on the information provided, in the preparation of the 20X4 consolidated financial statements, equipment will be ______ in the consolidation entries.


debited for $6,650


debited for $56,350


debited for $63,000


credited for $63,000

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Hawk-Dove (or Chicken) (t = tough, c = concede)
Two (young) players are engaged in a conflict situation. For instance, they may be racing their cars towards
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Player 1 \ Player 2 t c
t -1,-1 10,0
c 0, 10 5, 5
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