Question 7 Full explain this question very fast solution sent me step by step A person was considering buying a house priced at $350,000. A mortgage companyclaimed the interest rate for the 20-year loan is 2.75%. The company also estimated thatthe points and Appraisal, Credit Report, Processing, Document Preparation,Administration, Underwriting, Flood Certificate, Tax Service, Wire Transfer, and otherfees would be $15,000 in total.If the person accepts the terms of the loan on Feb. 29, 2016, the first monthly paymentis due on March 31. How much mortgage would have been paid off after the paymenton January 31, 2021?с$59,317.77$236,739.09C$57,206.46$58,260.91сNone of them

Mortgages are paid by the equal monthly installments and these monthly payment carry the payment for…

Answered: A person was considering buying a house…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and borrowing the remaining $470,000, signing a 9%, 15-year mortgage. Installment payments of $4,767.05 are due at the end of each month, with the first payment due on January 31, 2021. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? (Round your answers to 2 decimal places.)
The Ruffins are negotiating with two banks for a mortgage to buy a house selling for $115,000. The terms at bank A are a 20% down payment, an interest rate of 10.5%, a 30-year conventional mortgage, and 3 points to be paid at the time of closing. The terms at bank B are a 15% down payment, an interest rate of 10.0%, a 25-year conventional mortgage, and no points. Which loan should the Ruffins select in order for the total cost of the house to be less?
On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual rate of 7.35%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2014 (sencond year mortgage interest expense)?Calculate using at least 4 decimal points and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72 in the answer box provided. A. $23,079.40 B. $25,869.22 C. $24,601.12 D. $26,883.70 E. $25,361.98
If an entrepreneur applies for a loan amounting to ₱ 500,000 in a bank, the simple interest of which is ₱ 157,500 for 3 years, what interest rate is being charged?
On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual rate of 7.35%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2017?Calculate using at least 4 decimal points and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72 in the answer box provided. $22,769.25 $26,686.54 $24,483.06 $20,076.11 $19,096.79
An investor borrows £150,000 on the 1st of January 2017. The capital will be repaid after 25 years while interest on the loan is paid annually in arrears at a rate of 5% p.a. effective. The same investor receives an income from a property rental. The rent amounts to £800 payable monthly in advance (i.e. at the start of each month) and it is deposited in a savings account that pays interest at 3% p.a. effective. (a)Without using lengthy calculations explain why the rent is sufficient to cover the annual interest repayment on the loan. (b) Compute the total amount of annual savings at the end of each year accounting for the rent income net of the interest repayment on the loan. (c) Find the minimal additional amount X that the investor needs to pay every year into the savings account in order to repay the capital on 1st January 2042. Assume such payments are made in arrears.
In August 2008, a car manufacturing company was offering the choice of a 3.3% loan for 72 months, or $3000 cash back on the purchase of a $25,377 car. (a) If someone took the 3.3% loan offer, how much will the monthly payment be? (b) If someone took the $3000 cash-back offer and can borrow money from their local credit union at 7.6% interest compounded monthly for six years, how much will the monthly payment be? (c) Which of the two offers is more favorable?
On December 31, 2019, Panda Bank recorded an investment of P5,000,000 in a loan granted to a client. The loan has a 10% effective interest rate payable annually every December 31. The principal is due in full at maturity on December 31, 2022. Unfortunately, the borrower is experiencing significant financial difficulty and will have difficult time in making full payment. The bank projected that the entire principal will be paid at maturity and 4% interest or P200,000 will be paid annually on December 31 of the next three years. There is no accrued interest on December 31, 2019. The PV of 1 at 10% for three periods is 0.75, and the PV of an ordinary annuity of 1 at 10% for three period is 2.49. What is the loan impairment loss for 2019? A. P600,000 B. P752,000 C. P250,000 D. P748,000
The owner of Jewel Company had a loan from Metrobank amounting to ₱500,000. The bank requires the borrower to pay interest of 12% per annum and a yearly installment of ₱100,000 on the principal starting October 31, 2021. The loan was taken November 1, 2020. What would be the proper accounting of the given transaction at the end of 2020? A.Long term Loans payable, ₱500,000; Interest payable, ₱10,000 B.Long-term Loans payable, ₱400,000, Short-term Loans payable, ₱100,000; Interest Payable, ₱10,000 C Short-term Loans payable, ₱500,000; Interest Payable, ₱10,000 D Long-term Loans payable, ₱400,000; Short-term Loans payable, ₱100,000
On December 31, 2016, Rocky Bank has a loan receivable of P4,000,000 from a borrower that it's carrying is at face value and is due on December 31, 2022. Interest on the loan is payable at 9% each December 31. The borrower paid the interest due on December 31, 2016 but informed the bank that it would probably miss the next two years' interest payments. After that, the borrower is expected to resume the annual interest payment but it would make the principal payment one year late, with interest paid for that additional year at the time of principal payment. Round off present value factors up to three decimal points. What is the impairment loss for 2016?
On January 1, 2022, Anderson Company purchased a machine with a cost of $14,409.50. To complete the purchase, Anderson signs a note specifying monthly payments of $600 beginning one month from the purchase date. The interest rate is 18% compounded monthly. How many payments will Anderson make for this loan? What is the total amount of interest that Anderson will pay over the life of this loan?

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