You are currently renting an apartment and want to purchase a home, but you are unsure of the price you can afford. You know you can afford your monthly rent of $2,500 and you have been tucking away an additional 20% of that amount towards a down payment on a new house. So, you figure you can add that into what you can afford to pay in a mortgage payment. Now you just have to figure out how much of a home that will get you. To keep your payments as low as possible you are only looking at 30-year mortgages and the current market interest rate is 5.15%. You also know that you will need to put at least 20% down. I What is the maximum loan amount you can afford and what is the maximum price you can afford to pay on a home?

Q: ow to do a P&L statement

A: A profit & loss statement shows the organization's revenue, expenses, and its profit for a…

Q: Define T- account.

A: Transaction:   It is an economic event that is recorded in the accounting system of an organisation.…

Q: Using the above information, calculate efn

A: Here, Sales is $48,800 Assets is $53,650 Spontaneous Liability (Accounts Payable) is $2,400 % Change…

Q: Describe about the LIFO and FIFO method.

A:

Q: briefly explain what is meant by breakven points

A: Cost accounting is the part of accounting that helps in determining the total cost of production. It…

Q: Show how to insert formula in excel

A: Perpetuity: It is a stream of cash flow that is presumed to continue for an indefinite period.

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: When are data in 3NF?

A:

Q: Please correct the aswer

A: The current yield of the bond is referred to as the relationship between the annual coupon amount…

Q: What islockbox system?

A: Banks provide various services to the organizations such as lock box facility, overdraft facility,…

Q: Define statement of operations.

A: Financial statements of an organization includes income statement, balance sheet and cash flow…

Q: Describe the functions and powers of ASIC

A: Australian securities and investment commission is a commission made in 1998 of Australian…

Q: Define terminal value

A: Terminal value is the value of the project or the security at the end of a specified future date.…

Q: show calclations as excel formula

A: The future value of amount is the amount that was being deposited and amount of compounded interest…

Q: can you please type out the equation

A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…

Q: Explain an example of internal users.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Match the terms

A: Accounting principles are the accounting rules which an organization must follow while maintaining…

Q: Which function in excel did you use

A: The concept of time value of money will be used here. The amount needed today will be the sum of…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.