User Account

All Pages

What will your monthly payment be

Assignment Help Managerial Accounting
Reference no: EM13974356

You borrow $500,000 to purchase a house. The mortgage is a 30-year fixed rate mortgage, with monthly payments.
Assume that you have good credit, and can borrow money at a 3.75% annual interest rate. What will your monthly payment be?
Now, assume that you have lousy credit, and must pay a 6.5% annual interest rate to obtain a mortgage. What will your monthly payment be?Having lousy credit can be costly. How much additional interest will you pay over the 30-year period if you have bad credit, relative to what you would pay if you have good credit? (Calculate the total interest over the 30-year period on the loan in Part A, and the total interest over the 30-year period for the loan in Part D. What is the difference between the two amounts?). 
Is it ethical for banks to charge people with poor credit histories higher interest rates? [After all, people with lousy credit will benefit more from lower interest rates than people with good histories & high paying jobs (who could afford to pay more interest)].

Reference no: EM13974356

Questions Cloud

Origin and historical development of judaism : Consider the question of whether Judaism is essentially a religion, a race, a culture, or something else. Support your response by making reference to key events, individuals, or beliefs as they relate to the origin and historical development of J..
Explain deficiencies in the statement prepared by company : Identify and explain the deficiencies in the statement prepared by the company's accountant. Include in your answer items that require additional disclosure, either on the face of the statement or in a note.
Address a specific audience that might address : Write Business Letter to top executives, officials etc. regarding an issue. Your Business Letter must convey a local issue/topic, and should address a specific audience that might address your concerns. Your audience should also be able to answer you..
Problem regarding the kind of sources : On this site: www.law.cornell.edu, you are going to search for a case on any topic you want and answer the following questions: In the decision on that case, what kind of sources does the court seems to rely on the most in making the decision on tha..
What will your monthly payment be : The mortgage is a 30-year fixed rate mortgage, with monthly payments.Assume that you have good credit, and can borrow money at a 3.75% annual interest rate. What will your monthly payment be?
Find the taylor series expansion of the function : Find the Taylor series expansion of the function f (z) = 1-z/1+z centered at 0, using two methods, By direct application of the coefficient formula. Produce three terms of the expansion
Where was the deepest earthquake during the week : How many earthquakes were over 6.0 throughout the week? How many earthquakes are between 4.5 and 6.0 over the week? Where was the largest earthquake located?
Child support continues during the incapacity : The child is emancipated before becoming twenty-one (21) years of age. In this case the child support, except for the educational needs outlined in section 2(a)(1) of this chapter, terminates at the time of emancipation, although an order for edu..
What percentage of syrians have left their homes : Why are people leaving Syria? How many people have left? What percentage of Syrians have left their homes? What are the characteristics of those who are migrating to various countries? What are they doing in their new locations? What effects ..

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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