What is the total amount of interest

Assignment Help Finance Basics
Reference no: EM132386185

Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $35,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 9%; it calls for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest dollar, what is the total amount of interest that was paid during the first year?

Reference no: EM132386185

Questions Cloud

How much must your fist deposit be : How much must your fist deposit be if you are to meet your goal? Round your answer to the nearest cent.
Nominal annual rate should she quote to her credit customers : What nominal annual rate should she quote to her credit customers? Round the answer to two decimal places.
Second year will represent repayment of principal : What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal places.
How do you see the individualism of diversity : How do you see the individualism that is central to the American mainstream as being specifically in conflict with these definitions of diversity?
What is the total amount of interest : Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $35,000 as part of the payment
Higher premium-something close : On the other hand, some asserted that market conditions in 2010 only made sense if a much higher premium-something close to 8%-were assumed".
Calculate the amount of the annual payment : Fitzgerald OB/GYN signed a six-year capital lease on January 1, 2016, with payments due every December 31. Interest is calculated annually at 10%.
Identify the internal control weaknesses that exist at bison : Identify the internal control weaknesses that exist at Bison Burgers, and discuss what can be done to prevent this theft. Mel Lane works at the drive-through.
Does losing or maintaining one native language : What are some of the factors behind both the loss and persistence of native languages? Does losing or maintaining one's native language have any impact.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the npv of the proposed overhaul

Calculate the NPV of the proposed overhaul of the Vital Spark, with and without the newengine and control system. To do the calculation, you will have to prepare a spreadsheet tableshowing all costs after taxes over the vessel's remaining economic..

  After-tax cash flow from the sale

Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%. Remaining mortgage balance: $12 million. Remaining book value: $14 million. Total depreciation taken: $4.9 million. Recapture tax (for depreciation take..

  Prepare a depreciation schedule to be used for tax purposes

Prepare a depreciation schedule to be used for tax purposes for a $110,000 railroad spur (track) using the 200% declining-balance method and a halfyear convention. Ignore any special depreciation allowances.

  Calculate the weighted average cost of captial

The aftertax cost of debt is 9%, the cost of preferred stock is 12% and the cost of common equity (in form of retained earnings) is 14%. Calculate the weighted average cost of captial. Please show the work. Thank you

  Project year 0 net cash flow

initial investment of 285,000. fixed asset will have market value of 225,000. at end of project what is project's year 0 net cash flow? year 1? year 2? year 3? what is new NPV?

  Training program to address a workplace issue

Creating a Training Program to Address a Workplace Issue (Equal Opportunity -TOPIC) ex. lowes bringing in service dogs for veterans.

  Yanti corp preferred stock has a 5 stated

yanti corp. preferred stock has a 5 stated dividendpercentage and a 100 par value. what is the value of the stock if

  What is one share of the stock worth

Paramore, Inc. just paid its annual divdend of 1.45 a share. The firm recently annonced that all the furture dividends will be increased by 2.8 percent.

  Exchange rate changes tend to reflect international

exchange rate changes tend to reflect international differences in inflation rates. what is the name of this theory?a.

  Phase of accounting concerned with providing information

The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called:

  What is taggart constant growth

Based on this information, what is Taggart's constant growth rate in dividends

  Estimate the average annual return

The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period.

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