Reference no: EM13334042
Mr. Davidson plans to buy a new house in October 2013. The sale price of the house is $436,000. He plans to pay 20% down payments and borrow additional 80% from Bank of America with a 15-year, 3.875% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from November 2013 for 15 years.
(1) Calculate the required monthly mortgage payment for Mr. Davidson.
(2) Construct the 2013~2015 amortization table (26 months) for Mr. Davidson.
(3) Mr. Davidson should prepare his 2013 tax filings in early 2014. Please compute the total mortgage interest payments which he can use for his 2013 tax deductions.
The MS Energy Corp. is planning a new investment project which is expected to yield cash inflows of $185,000 per year in Years 1 through 2, $220,000 per year in Years 3 through 6, and $198,000 in Years 7 through 9. This investment will cost the company $790,000 today (initial outlay). We assume that the firm's cost of capital is 6.8%.
(1) Draw a time line to show the cash flows of the project.
(2) Compute the project's payback period, net present value (NPV), profitability index (PI), and internal rate of return (IRR).
(3) Discuss whether the project should be taken.
|
Determine how much must be remitted for the purchase
: The current price of the $1,000 bond is $978. On February 1, you purchase $10,000 face amount, and your broker charges a $25 commission. How much must you remit for the purchase
|
|
What is the maximum speed during the motion
: A horizontal spring-mass system has low friction, spring stiffness 150 N/m, and mass 0.4 kg. What is the maximum speed during the motion
|
|
Explain the molar mass of fecl2
: Find the percentage of FeCl2 in a 35.5g sample of ore which has been dissolved in aqueous acid and titrated to the endpoint with 23.55 ml of 0.309 M Cr2O7^2- . the molar mass of FeCl2 is 126.0 g/mol. Cr2O7^2- + Fe^2+ ------> Cr^3+ + Fe^3+
|
|
How far apart will the three teddy bears land
: At a county fair, a boy and two friends bring their teddy bears on the giant Ferris wheel. The boys are seated in positions 45° from each other. How far apart will the three teddy bears land
|
|
Draw a time line to show the cash flows of the project
: The sale price of the house is $436,000. He plans to pay 20% down payments and borrow additional 80% from Bank of America with a 15-year, 3.875% fixed-rate mortgage loan.
|
|
Find the potential difference for each capacitor
: Two capacitors, C1 = 2x10^-6 F and C2 = 4x10^-6 F, are connected in series with an 18 V battery. Find the final charge and potential difference for each capacitor
|
|
Describe file system principles and interpret the system
: Identify, and describe the advantages, disadvantages, organization and functions of the major components of a modern operating system.
|
|
Explain what is the molarity of a solution made
: What is the molarity of a solution made from 23.1g of NaNO2 dissolved in enough water to make 500ml solution
|
|
Find the magnitude of the resulting angular acceleration
: A ball of mass 0.1 kg is suspended vertically from the ceiling with a "massless" string and brought to rest. what will be the magnitude of the resulting angular acceleration
|