A purchaser has a total weekly income of $788. The lender is using a 26% housing expense-to-incomeratio. Based on this ratio, what is the maximum monthly loan payment that the buyer will qualify for?98.$205$820$888A.B.C.D.$2,459A business produces an annual net income of $103,000. The annual operating costs total $31,000. Trate of return is 11%. What is the estimated value of the business?99.

Lender provides loans based on income and expenses ratio of person.From that they decide how much…

A purchaser has a total weekly income of $788. The lender is using a 26% housing expense-to-income ratio. Based on this ratio, what is the maximum monthly loan payment that the buyer will qualify for? $205 $820 $888 A. B. C. D. $2,459 A business produces an annual net income of S103,000. The annual operating costs total $31,000. ate of return is 11%. What is the estimated value of the business?

A purchaser has a total weekly income of $788. The lender is using a 26% housing expense-to-income ratio. Based on this ratio, what is the maximum monthly loan payment that the buyer will qualify for? $205 $820 $888 A. B. C. D. $2,459 A business produces an annual net income of S103,000. The annual operating costs total $31,000. ate of return is 11%. What is the estimated value of the business?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $43.02 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.50 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
Please answer. It's urgent Q- Talmud Book Company borrows $16,000 for 30 days at 9 percent interest. What is the dollar cost of the loan? ( use 360- day a year)
Foxtrot Corporation is purchasing a new Ford Transit delivery van for $24,600. Its lender requires a maximum loan to value ratio of 80% on the purchase price of the vehicle. The term of the loan is 5 years. The interest rate is 5% APR. The loan is a closed end credit loan. There is no trade-in. Sales tax is 7%. Documentation fee is $275. a. What is the total cost of the delivery van including purchase price, sales tax, and documentation fee; and how much is classified as an asset on the balance sheet and how much is classified as an expense on the income statement? b. How much cash must Foxtrot Corporation have to make the down payment? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?
A company has an existing bank loan of Kshs.5,000,000 with an interest rate of 13%. What is the cost of this loan if the tax rate is 30%? a. 7% b. 9.1% c. 30% d. 13%
Seis
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ , and principal = $ d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ , and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ , and principal = $ Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.
6.-In a furniture store, a dining room set can be purchased for $25,946.41 in cash or through monthly payments of $513.27. If the interest offered by the furniture store is 9.4% per semester compounded monthly, how many monthly payments must be made to cover the debt when buying on credit? options: 90 101 120 110
You purchased a new washer and dryer for $1,297.07 (including sales tax and delivery). Financing was used for the full purchase price and the payments are $141.43 per month for 11 months. What is the cost for the loan?
A Honda Civic Type R retails for $27,191 (all taxes included). What are the monthly loan payments for the car if you make a down payment of $4,422, the term is 4 years and the APR is 2%? (Car loan payments are made at the end of each month.) What is the amount of the monthly payment? $ (Type a number to the nearest cent.) ...
A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000; Interest rate = 8%; Term = 5 years. After two instalments the borrower decides to pay off the loan. What is the payoff amount? a. $32,273 b. $22,331 c. $31,543 d. $31,670 Accrual basis in loan pricing refers to a. the number of days used to calculate interest b. the effective yield c. the method of accounting used to record the loans d. none of the above Which of the following accurately describes the other real estate owned that appears as an asset on the bank’s balance sheet? a. includes premises and equipment b. includes only the land owned by the bank. c. usually represents property obtained through foreclosure on problem loans d. is limited to the equipment owned by the bank Collateral does not reduce the risk of a loan per se, because a. it is not part of the loan agreement b. the risk of a loan is determined by the borrower’s willingness and ability to repay…

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