How much of the principal is left at the end of fifth year

Reference no: EM131900180

Problem

Mr. and Mrs. Smith, who both work for a national retail chain, purchased a house with a price of $400,000. They paid a down payment of $40,000 using their savings and took a 30-year loan from the local bank at an interest rate of 9% per year. What is their monthly payment? After living five years in this house, they were transferred by their employer to another division in a different state, and they wanted to sell the house.

a. How much of the principal is left at the end of the fifth year?

b. If their MARR is 10%, what should be their minimum asking price for the house?

Reference no: EM131900180

Questions Cloud

Which one of the projects should you accept : Initial investment $ 1,600K annual income $600K. Life of project a is five year and that of project b is ten years. Which one of the projects should you accept?

What are some of the issues that cause trouble for managers : Women, minorities, persons with disabilities, older Americans, people with family medical emergencies, Civil Rights Acts, Equal Pay, Vocational Rehabilitation.

Gregor mendel revolutionary paper : As Bronowski says of Gregor Mendel's revolutionary paper on the genetics of the sweet pea plant, Mendel published his results in 1866 and achieved instant obliv

Develop a list of quality standards that you could use : Develop a list of quality standards that you could use in making this hiring decision.

How much of the principal is left at the end of fifth year : How much of the principal is left at the end of the fifth year? If their MARR is 10%, what should be their minimum asking price for the house?

Double helical structure of dna : Crick once said that without Watson he probably would not have made the discovery of the double helical structure of DNA on his own.

What needs to be done to get the project back on track : If you were the consultant, how would you have dealt with the attitude of the Initial Contact Centre staff?

What are the technological preferences for customer service : How can a company balance technological preferences by demographic profile and not have a model that delivers one type of customer service to all?

Describe the ethical issues in wells fargo bank : Using the decision - making model evaluate and describe the ethical issues in Wells Fargo Bank scandal include any additional models.

User Account

All Pages