Question
In: Finance
The second file is for a client named Toomes, who also has a mortgage with the bank. The details you can gather for Toomes' loan are as follows:
The second file is for a client named Toomes, who also has a mortgage with the bank. The details you can gather for Toomes' loan are as follows:
• Current loan outstanding: $499,000
Current monthly repayment: $2620
• Next repayment. Due exactly 1 month from now
• Interest rate on loan: 112=4.8%
Using this information, determine the following:
How much interest is Toomes charged for the coming month? Do NOT include a dollar sign in your answer.
Solutions
Expert Solution
Calculation of the interest charged for the coming month is as follows:
Interest charged for the coming month = Outstanding amount of the current loan * interest rate for one month
Interest charged for the coming month = 499,000 * 4.8% / 12
Interest charged for the coming month = 499,000 * 0.4%
Interest charged for the coming month = 1,996
Hence, the interest charged for the coming month is 1,996.
Hence, the interest charged for the coming month is 1,996.
Nabeel answered 1 year agoRelated Solutions
The third file is for a client named Alexei. Alexei took out a personal loan exactly one year ago with Harrison
The third file is for a client named Alexei. Alexei took out a personal loan exactly one year ago with HarrisonBank. From his file, you have noted the following information:Original loan amount: $36,000Current loan outstanding: $30973.77Monthly repayment: $700Next repayment: Due exactly 1 month from nowInterest rate on loan:i1212=10%For the purposes of the remaining questions, use the rounded values given above. Using this information, determine the following:How much principal has Alexei repaid over the last year? Give your answer to the...
Mortgage loan commercials and bank banners can be a little confusing due to the fact they...
Mortgage loan commercials and bank banners can be a little
confusing due to the fact they report two rates: 1) the stated
nominal annual rate that we usually think of as APR which is
compounded monthly and is the rate that is used on the actual loan
amount to determine the monthly payment, and 2) the "APR" which is
somewhat higher and in some ads significantly higher than the first
rate. This second "APR" is a stated nominal annual rate...
What are three differences between dementia and delirium? Can a client who has dementia also experience...
What are three differences between dementia and delirium? Can a
client who has dementia also experience delirium? How is the focus
of nursing care different for clients who have dementia vs. clients
who have delirium?
ABC Inc. borrowed funds from its bank. Details are as follows. Four year term loan, U.S....
ABC Inc. borrowed funds from its bank. Details are as
follows.
Four year term loan, U.S. $500,000
Funds borrowed 1 January 2016; due 31 December 2019
Exchange rates:
1 January 2016
U.S. $1 = Cdn. $1.34
31 December 2016
U.S. $1 = Cdn. $1.40
31 December 2017
U.S. $1 = Cdn. $1.41
31 December 2018
U.S. $1 = Cdn. $.136
31 December 2019
U.S. $1 = Cdn. $1.38
Required:
Prepare the journal entries as follows to record:
A) Receipt of...
2. ABC Inc. borrowed funds from its bank. Details are as follows. Four year term loan,...
2. ABC Inc. borrowed funds from its bank. Details are as
follows.
Four year term loan, U.S. $500,000
Funds borrowed 1 January 20X6; due 31 December 20X9
Exchange rates:
1 January 20X6
U.S. $1 = Cdn. $1.35
31 December 20X6
U.S. $1 = Cdn. $1.40
31 December 20X7
U.S. $1 = Cdn. $1.42
31 December 20X8
U.S. $1 = Cdn. $.136
31 December 20X9
U.S. $1 = Cdn. $1.39
Required:
Prepare the journal entries as follows to record:
A) Receipt...
You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge...
You have borrowed $56000 as a mortgage loan to buy a house. The
bank will charge interest at the rate of 9% annually and requires a
minimum monthly payment of $500. At the end of five years, you must
pay off the entire mortgage by a “balloon payment”. You plan to pay
only the minimum amount each month and then pay off the loan with
the final payment. Find this balloon payment. (Answer:
$49966.07)
please answer in excel format
You are a credit manager for Second Bank of Terlingua. Your bankis considering a loan...
You are a credit manager for Second Bank of Terlingua. Your bank
is considering a loan to Arti Choke, a property developer in
Terlingua. The structure of the loan is such that Arti would agree
to pay back $13 million per year for 7 years, with the first
payment in one year. Given the risk of Arti’s company, you think
that the appropriate interest rate should be 23% per year,
compounded annually. Given this rate and the structure of the...
Taking the role of a financial planner, let's say you have a client (named Jane), who...
Taking the role of a financial planner, let's say you have a
client (named Jane), who is a single mother of two in her late
twenties. Due to attractive interest rates, Jane just bought her
first house. She lives in Denton but drives to work each day in
Frisco in a vehicle that she purchased, but is not fully paid for.
What types of insurance does Jane need to have protection (mitigate
risks) in all aspects of her life? Describe...
Taking the role of a financial planner, let's say you have a client (named Jane), who...
Taking the role of a financial planner, let's say you have a
client (named Jane), who is a single mother of two in her late
twenties. Due to attractive interest rates , Jane just bought her
first house. She lives in Denton, but drives to work each day in
Frisco in a vehicle that she purchased, but is not fully paid for.
What types of insurance does Jane need to have protection (mitigate
risks) in all aspects of her life...
Suppose you get $500, 000 mortgage loan from a bank and you have a two options...
Suppose you get $500, 000 mortgage loan from a bank and you have
a two options to repay.
option one: pay $620, 000 after 10 years as a one time
payment
2. Repay $30,000 at the end of every year for infinite years
Which has a lower interest rate?
please describe how to get the answer, thanks
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
- The equivalent synchronous impedance of a 25kVA, 400V three-phase Y-connected synchronous generator is 0.05 + j1.6...
ADVERTISEMENT