How much of the twelfth payment will be interest

Assignment Help Econometrics
Reference no: EM13235576

A man borrows $120,000 to buy a home. The interest rate is 4.5%, compounded monthly, and its period is 30 years.
a) What will be the monthly payment (equal payments) for the life of the loan?
b) What will be the effective annual interest rate, ieff ?
c) How much of the first payment will be interest?
d) How much of the twelfth payment will be interest?

Reference no: EM13235576

Questions Cloud

Describe why should the company buy the patent : A company is now licensed to manufacture a patented tool on which the patent has only 7 more years to run. The company makes 7500 copies of the tool each year and pays the inventor $100 per year plus $0.05 per tool produced.
How can organizational restructuring enable specific types : How can organizational restructuring enable specific types of businesses to attain competitive advantage in a changing market? Provide specific examples.
What strategies have been used to promote collaboration : What strategies have been used to promote collaboration at your workplace or a company with which you are familiar? Have these strategies been successful or unsuccessful? Explain.
What is the ratio of the magnitude : A proton is released from rest inside a region of constant, uniform electric field E1 pointing due North, What is the ratio of the magnitude of E2 to the magnitude of E1
How much of the twelfth payment will be interest : A man borrows $120,000 to buy a home. The interest rate is 4.5%, compounded monthly, and its period is 30 years. a) What will be the monthly payment (equal payments) for the life of the loan
Determine which location would be the better choice : The estimated rate of return is 10% per year. Using net present value, determine which location would be the better choice.
What is the amount of 10 equal annual deposits : What is the amount of 10 equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year
How public relations departments influence public opinion : Summarize how public relations departments influence public opinion and discuss if government regulation should be involved?
Find the direction and magnitude of its acceleration : An object with a charge of -4.4?C and a mass of 1.7×10?2kg experiences an upward electric force, If the electric charge on the object is doubled while its mass remains the same, find the direction and magnitude of its acceleration

Reviews

Write a Review

Econometrics Questions & Answers

  Compute the price elasticity of demand for paint

Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following Compute the price elasticity of demand fo..

  Determine what is germanys current account balance

Germany consumers have $50 in income "their gross domestice product". They spend $35 on consumer goods "$25 on Germany goods and $10 on imports", they save $8, and pay $7 in taxes. The government collects $7 in taxes and spends $10 on locally-made..

  What is the equilibrium level of real output

Use the data above to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy Is the equilibrium real output also necessarily the full-employ..

  Which of your current costs are implicit

Suppose you own a restaurant that serves only dinners. You are trying to decide whether or not or rent out your dinning room and kitchen during mornings to another firm, the Breakfast Club Inc., that will serve only breakfast.

  Discussion on kohls

Select three macroeconomic indicators that you feel have greatest impact on operations or considering for Kohls. Discuss and describe why they are important to current or future situation of your organization.

  How management would implement the recommendations

Speculate how the price for that good or service may have been set and how well this price maximizes profit for the company and determine what shifts the company should made in its pricing strategy. Provide support for your recommendations.

  Did economic well being rise more

(a) Computer nominal GDP, real GDP, and the GDP Deflator for each year using 2005 as base year (b) Compute the percentage change in nominal GDP, real GDP, and the GDP Deflator in 2006 and 2007 from the perceeding year. For each year, identify the var..

  What is the price level and what is the wage

Consider an economy with the production function Y= L^(1/3) a) Derive the Labor demand Curve b) If Labor supply curve is L^s= (w/p) , calculate the equilibrium levels of real wage, labor and output.

  What is the irr of this proposed power plant

he company is proposing to build a $10-million power plant to burn its waste as fuel, thereby saving $2.8 million a year in coal purchases. Company engineers have determined that the waste-burning plant will be environmentally sound.

  What is the absolute size of it public debt

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.What ..

  Find what is the opportunity cost of an increase in income

(a) Calculate the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 grade point average(GPA) rather than a 2.0 GPA. (b) Is the opportunity cost the same for a move from a 0.0 GPA to a 1.0 GPA as it is for ..

  How much should you deposit in an account earning

You just inherited $10,000. while you plan to squander some of it away, how much should you deposit in an account earning 5% interest per year if you'd like to have $10,000 in the account in 10 years

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!

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