What is the total amount of interest

Assignment Help Finance Basics

Reference no: EM13720872

Assume that you aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $10,000 as part of the payment. The mortgage has quoted (or nominal) interest rate of 10% It calls for payment 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 include 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?

Finance I -assignment

Reference no: EM13720872

Questions Cloud

How fast is the asteroid when it crosses mars orbit : An asteroid (m = 4 x 1010 kg) falls to Earth from very far away. Assume the original (very far away) velocity of the asteroid to be negligible. How fast is the asteroid when it crosses Mars' orbit

Examine a recent business periodical online : Examine a recent business periodical online and report briefly on some lapse in integrity that is in the news. could this type of problem occur in a small business

Importance of employee feedback from the manager : Problem 1: Evaluate the importance of employee feedback from the manager's stand point, as well as, the employee's stand point. Discuss the three approaches managers can take to conducting feedback. In your opinion, what is the approach you would ..

What was the most fruitful cultural interchange : What was the most fruitful cultural interchange in human history and do we have more freedom in the modern world than we did in previous eras?

What is the total amount of interest : Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was include 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...

Discussing the six key functions of a business operations : Create a 6 - 8 slide Microsoft PowerPoint presentation identifying and discussing the six key functions of a business's operations.

Brief statement of the investigative issue : Provide a brief statement of the investigative issue. Describe the epidemiological steps you would take by addressing the questions asked within the case study you select.

The flexible leadership theory : According to the flexible leadership theory, the CEO of an organization should: a. focus primarily on short-term objectives such as quarterly profits b. provide heroic, charismatic leadership for the organization

What two forms used to depict the solar deity ra-horakhty : What two forms were used to depict the solar deity Ra-Horakhty. During the Amarna period, squares were removed from the grid system to shorten the proportion of the figures.

User Account

All Pages