User Account

All Pages

How much of the loan balance at the end of sixty month

Assignment Help Financial Accounting
Reference no: EM133004387

Assume an elderly person owns a $350,000 home that is free and clear of mortgage debt. A lender has agreed to a $350,000 reverse mortgage with monthly payments. The loan term is 15 years. The annual interest rate is 6%.

Problem 1: If the elderly passes away in 5 years (60 months), what will be the loan balance?

Option 1: $266,031.85
Option 2: $83,968.15
Option 3: $26,603.19
Option 4: None of the above

Problem 2: How much of the loan balance at the end of 60th month represents the interest portion?

Option 1: $1,338.24
Option 2: $93,241.78
Option 3: $11,758.22
Option 4: None of the above

Reference no: EM133004387

Questions Cloud

How much of these costs should be inventories : Dexter's company's 2016 manufacturing costs were as follows: Direct materials and direct labor 100,000. How much of these costs should be inventories
What is the annual effective cost of the loan to the elderly : A lender has agreed to a $350,000 reverse mortgage with monthly payments. What is the annual effective cost of the loan to the elderly?
Payback period for the project : Your firm has estimated the following cash flows for a capital investment project. The firm's required rate of return is 12%. Which of the following is closest
How much is the effect on the profit or loss : How much is the effect on the profit or loss section of the statement of comprehensive income relating to transactions for the year 2023
How much of the loan balance at the end of sixty month : A lender has agreed to a $350,000 reverse mortgage. How much of the loan balance at the end of 60th month represents the interest portion?
What is the interest charged in the first month : What is the interest charged in the 1st month? Assume an elderly person owns a $350,000 home that is free and clear of mortgage debt.
What are the alternative forms of organization : What are the alternative forms of organization and how would you differentiate each?
Expects to receive an indexed employer pension : Mark wants to retire in 22 years at age 64 in Mississauga, Ontario. He expects to receive an indexed employer pension of $20000 per year and 75% of the maximum
Evaluate the new machinery system profitability : Use the NPV method to evaluate the new machinery system's profitability. A farmer is considering replacing a labor-intensive machine system

Reviews

Write a Review

Financial Accounting Questions & Answers

  Elucidate how choice of the type of responsibility center

Elucidate how the choice of the type of responsibility center affects behaviour. You should support your discussion by using real world examples.

  Why net income and net cash flows will be different

For a growing successful company, which would you argue would likely be higher--net income or net cash flow from operations?

  Uses the perpetual inventory system

Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: Started the business by issuing common stock for $7,920 cash. Schumacher Company uses the perpetual inventory system, and it engaged in ..

  Is subsequent payments and cut-off testing necessary

Is subsequent payments and cut-off testing necessary? What result would the disruption have on the assessed level of control risk?

  Question steve morgan controller for newton industries was

question steve morgan controller for newton industries was reviewing production cost reports for the year. one amount

  Which statements in relation to refinancing or rescheduling

Which statements in relation to refinancing or rescheduling of liability is true? A liability which is due to be settled w/n 12 mos..

  What is liability to the brokerage

Suppose you didn't make any transaction, and there is no margin call during this year. After one year, what is your liability to the brokerage?

  Find the cost of capital for building the sports stadium

ABC inc. a listed entity wants to build a sports stadium worth $ 1 million for its local county. Estimate the cost of capital for building the sports stadium.

  Prepare the journal entries for years ending for gregory ltd

Gregory Ltd enters into a non-cancellable five-year. Prepare the journal entries for the years ending 30 June 2020 and 30 June 2021 in the books of Sanders Ltd

  Liquidating unincorporated business form consisting of two

Dividing An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.Partnership Net Income. Stevens and Conyers had $43,000 and $171,000, respectively, in their January 1 capital balances. Net income..

  Evaluate organisation pre-existing strategic

Evaluate your organisation's pre-existing strategic, business and operational plans, if available. Does your organisation have a pre-existing strategic

  What amount should blossom report as december inventory

Blossom Company took a physical inventory on December 31. What amount should Blossom report as its December 31 inventory?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd