Question

In: Finance

If the Johnson Company just acquired a building for $200,000 through financing from Bank of America...

If the Johnson Company just acquired a building for $200,000 through financing from Bank of America at a 5% annual interest rate. 20 years to loan maturity. What would be Johnsons monthly mortgage payment? Round the answer to the nearest whole dollar.

Solutions

Expert Solution


Related Solutions

The Johnson Company purchased a building for $200,000 at an interest rate of 5% for 20...
The Johnson Company purchased a building for $200,000 at an interest rate of 5% for 20 years. If they decided to pay $,2400 additional a year toward the borrowed principle, while everything else remained constant, how many years from today can they pay off the mortgage
You are developing a 100,000 sqft industrial building. The bank is financing 60% of the total...
You are developing a 100,000 sqft industrial building. The bank is financing 60% of the total project cost, interest-only at 4%, while the balance is funded by the MP. The draw schedule is as follows July 2020: 2.0M August 2020 - March 2021: $1.0M/month The total budget is $10.0M Assume the construction interest for a given month is equal to the monthly interest rate times the prior month outstanding balance plus current month draw, for example, October interest = monthly...
identify the Failed mergers between Bank of America acquired Merrill Lynch? why these Alliances are Successful...
identify the Failed mergers between Bank of America acquired Merrill Lynch? why these Alliances are Successful Ford / Eddie Bauer?
​You just bought a house for $300,000. You put $100,000 as a down payment and borrow the remaining $200,000 from a bank.
You just bought a house for $300,000. You put $100,000 as a down payment and borrow the remaining $200,000 from a bank. You take out a 30-year mortgage that charges you 6 percent APR but with monthly compounding.              A. (15 points) How much is your monthly mortgage payment? Show your work.              B. (5 points) How much of your second mortgage payment goes towards interest? Show your work.
Ingenuous Company acquired a building on January 1, 2020 for P9,000,000. At that date, the building...
Ingenuous Company acquired a building on January 1, 2020 for P9,000,000. At that date, the building had a useful life of 30 years. On December 31, 2020, the fair value of the building was P9,600,000 and on December 31, 2021, the fair value is P9,800,000. The building was classified as an investment property and accounted for under the cost model. What amounts should be carried in the statement of financial position and recognized in profit or loss for 2021?
You are starting a wine company in Kamloops. You need financing from a bank to make...
You are starting a wine company in Kamloops. You need financing from a bank to make the company possible. You are sitting with the loan officer at ABC Bank, Ms. Money Bags. Money asks you a question. “How will the bank know the new company will be a success? That is, what internal financial reporting (managerial accounting) documents / procedures / techniques / policies will your company implement to estimate and monitor your success?” How can you make the bank...
On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is a 10-year...
On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is a 10-year note payable that requires semi-annual payments of $24,000 every June 30 and December 31, beginning June 30, 2020. Assume the loan has a 20% interest rate, compounded semi-annually. Calculate the amount of the note payable at December 31, 2020 that would be classified as a long-term liability.
Repay an existing bank loan outstanding. The company has a $200,000 loan outstanding from a local...
Repay an existing bank loan outstanding. The company has a $200,000 loan outstanding from a local community bank. The interest rate on the loan is 11.5 percent (fixed). Interest payments on the loan are due at the end of each year and the loan balance matures in full in five years. Repay Loan Investment (Outflow) = $200,000 Discount Rate = 10% Annual Interest On The Loan = $200,000 X 11.5% =$23,000 NPV=
Early in 2018 Johnson Company was acquired by a new owner who discovered errors in the...
Early in 2018 Johnson Company was acquired by a new owner who discovered errors in the accounting records. The new owner would like you to analyze the error described and then determine the impact the accounting items listed. Each error should be analyzed separately. Be Sure to indicate the dollar amount or not the error caused the items to be overstated (OS) or Understated (US) or No Effect. Vacation pay earned in 2017 of 31100 was not accrued in 2017....
Frank is going to pursue additional financing from the local bank. The bank will require some...
Frank is going to pursue additional financing from the local bank. The bank will require some insight into how Frank's business will be successful and sustainable. Prepare a short write up (approximately 1 page) explaining to the bank why your (Frank's) business will be viable. Submission could include (but are not limited to) location, time of year, target consumer, pricing, anticipated sales volume, and what makes your hot dogs special. Your write-up should ask for an amount of cash from...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT