Question

If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage with a monthly payment of 12,697.43. How much interest would be paid in the first 12th payment?

A.) 1,049.47

B.)1,504.45

C.) 1,240.67

D.) 1,120.67

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Financial Markets

Corporate Finance

Related Finance Q&A

Find answers to questions asked by students like you.

Q: How do you apply the Net Present Value rule when multiple projects are available and you have the ad...

A: If the NPV is positive, the project should be accepted. If the NPV is negative the project should be...

Q: The past five monthly returns for PG&E are −3.51 percent, 4.73 percent, 4.11 percent, 6.98 perce...

A: Month Returns 1 -3.51% 2 4.73% 3 4.11% 4 6.98% 5 3.92%

Q: 24

A: Calculation of the NPV is shown below: Hence, the option second is correct.

Q: Bill Jones plans to deposit $2100 at the end of every 6 months for the next 20 years into an ammuity...

A: Semi-annual payments (C) is $2,100. Number of payments (n) is 40 (20×2). Semi annual Rate of return ...

Q: What is the meaning of Loan assumably?

A: Introduction: Assumable loan is nothing but a mortgage which can be passed to another party by the b...

Q: Can you please explain how to work this problem out in detail?   Bob Bryan made deposits of $1,000 a...

A: The annual interest rate is 8% compounded quarterly. The interest per quarter will be (8% ÷ 4) = 2%....

Q: A Treasury bond that you own at the beginning of the year is worth $1,100. During the year, it pays ...

A: Treasury Bond: Beginning value (purchase price)= 1100 Ending value (Sale price)= 1110 Interest payme...

Q: Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest ce...

A: Calculate the principal loan amount as follows: Principal loan = Selling price - Down payment Princi...

Q: 5 What is bullet immunization?  Explain

A: Immunization refers adopting an investment strategy so that return from assets is matched with oblig...

Q: GM stock produced the following monthly returns (Jan.- May): 5%, 8%. -2%, 12%and 15% Ford stock prod...

A: Standard deviation measures the dispersion of the data and is used to calculate the risk. Correlatio...

Q: 3 What is the intrinsic value of an CALL option?

A: Intrinsic value of a call option is the difference between the market price of the underlying stock ...

Q: 1

A: Year  Cash flows 0 -5000 1 3200 2 3200 3 3200 4 3200 5 3200 6 3200 7 3200 8 3200 ...

Q: Do= $0.80, P0= $22.50, gl= 8% continous. Based on the dividen growth model . What is the percent of ...

A: (Current dividend)D0=0.80 Current stock price (P0)=22.50 Growth rate (g)=8%

Q: In what ways do investors quantify the risk levels between domestic and foreign securities?

A: Security is an investment that gives ownership to its owner who can gain profit by investing in such...

Q: 2 What must happen for a covered call to be profitable?

A: An option and risk management strategy, which includes maintaining a long position in the financial ...

Q: Enterprise stock trade for $52.50 per share. Its expected to pay $2.50 dividend at end of year (D1= ...

A: WACC stands for Weighted Average Cost of Capital. It is the cost of capital of the company which is ...

Q: 19

A: The formula to calculate annual depreciation using straight line is given below:

Q: 16

A: Calculation of the NPV (net present value) is shown below: Hence, the last option is correct.

Q: D. Services recently hired you as a consultant to help with its capital budgeting process. The compa...

A: Excel Formulas:

Q: You are considering a project with an initial cost of $7,800. What is the payback period for this pr...

A: Click to see the answer

Q: Warm and Dry is considering adding a new line of winter footwear to its product lineup. Which of the...

A: Option I is correct, as this is the opportunity cost to the firm of introducing new product line and...

Q: They decide to shop for furnishings for the new house.  They choose items that amount to $2400.00.  ...

A: 1. Option 1 will have a smaller total finance charge that is $2,189. The calculation of the total fi...

Q: The Hangover Diner is considering a project to build a new diner next to Saint Joseph's University w...

A: Formulas:

Q: Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.95 percent and semiannu...

A: SEMI ANNUAL COMPOUNDING     Yield to maturity (23*2) 46 coupon amount (PMT)  (5000*3.95%)/2 98...

Q: A $1,000 bond has a coupon of 6 percent and matures after 10 years. Use semi- annual interest paymen...

A: 1) Face Value (FV) = $1000 Semi-annual coupon ( C )= 6%*1000/2 = $30 Number of periods to maturity (...

Q: Can you please help me work out this problem in detail?   Minnie Rose deposited $15,000 in Street Ba...

A: The question is based on the concept of compound interest calculation with quarterly compounding fre...

Q: How do I work out this problem?   Calculate the monthly payment by table lookup and formula. (Answer...

A: Therefore, the monthly payment is $94.41.

Q: Companies often use several methods to evaluate the project’s cash flows and each of them has its be...

A: Payback period: This method shows, in how many years company is able to recover its initial investme...

Q: #31 Mutually Exclusive Investment Cash flow forecast for two mutually exclusive projects Yea...

A: Initial investment is $100 for both project. We divide cash flow of these projects in the subsequent...

Q: What is a deficiency judgment and how is its value to a lender affected by the Bankruptcy Code?

A: Bankruptcy is filed by a debtor who is unable to repay its creditors. In case a person files for ban...

Q: CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name. The loan is pay...

A: A lawful entity, ordinarily an organization that respects responsibility is characterized as being s...

Q: Project A costs $41425 and has a WACC of 13%. It expected net cash inflows are as follows: Year:  0 ...

A: The initial investment amount is $41,425. The below expression can be used to calculate the MIRR:

Q: The document filed with the state that begins the incorporation process in most states is called the...

A: Article of incorporation is the document in which detail of the business which is going to commence ...

Q: Constant growth valuation Thomas Brothers is expected to pay a $3 per share dividend at the end of t...

A: Given that;Expected dividend to pay (D1) is $3Dividend growth rate (g) is 4%Required rate of return ...

Q: What is management’s primary objective?

A: The primary objective of the management is Shareholders wealth maximization which is a long-term goa...

Q: 8) Face value: $4,000 Interest rate: 12% Term: 6 months Discount period: 3 months find: maturity val...

A: Calculation of the maturity value is as follows: Hence, the maturity value of $4,240.

Q: Explain Acquiring Title “Subject to” a Mortgage?

A: Utilizing any real estate or property as a surety for obtaining any kind of loan is known as a mortg...

Q: fixed cost=650000.00 variable cost per procedure=20 total procedures for the year=12500 what is the ...

A: The variable cost per procedure is 20. The total procedure for the year is 12,500. The below express...

Q: Consider the following two mutually exclusive projects: Year                 Cashflow (a)           ...

A: Excel Formulas:

Q: Answer true of false to each of the following. briefly explain your reasoning for each answer a. All...

A: Answer: True. Consider the equation below: A0 = Current level of assets S0= Current level of Sales L...

Q: #23 Profitability Index   Project             C0                    C1                    C2        ...

A:  

Q: Can you please explain in detail how to work out this problem?   Lane French had a bad credit rating...

A: Calculate the interest amount as follows: Interest amount = Loan repaid - Loan taken Interest amount...

Q: 5

A: Click to see the answer

Q: A deposit of $2,570 is placed into a retirement fund at the beginning of every 6 months for 14 years...

A: Future value is the value of amount invested today at a future specified period and interest rate.

Q: The past five monthly returns for PG&E are −3.57 percent, 4.88 percent, 4.17 percent, 7.07 perce...

A: Month Returns 1 -3.57% 2 4.88% 3 4.17% 4 7.07% 5 3.98%

Q: A stock is currently priced at $39.5.  Its dividend is expected to grow at a rate of 6.4% per year i...

A: Here, The stock price in year 4 is P4. The Stock price in year 0 is P0 i.e. $39.5. The growth rate i...

Q: Explain the roll of debt and equity markets in the economy. How do they interact with both Primary a...

A: Debt and equity market play a vital role in the economy. The market where investors and traders meet...

Q: The foreign subsidiary of a U.S. firm is profitable when profits are measured in the foreign currenc...

A: Translation exposure emerges by the requirement of converting the income (denominated in foreign cur...

Q: The yield on a firms bond is 8.75% and your economist believes that the cost of common can be estima...

A: Cost of common is the needed rate of return for the common equity holders. It is a part of the WACC(...

Q: Bob entered into a land contract to purchase real estate from Sam. The purchase price was to be paid...

A: In this case, B is purchasing land from S, agreeing to pay monthly installments for 10 years. Accord...