Suppose that your aunt sold her house on december 31 and

Assignment Help Finance Basics
Reference no: EM13478353

Assume that your aunt sold her house on December 31 and that she took a mortgage in the amount of $10,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 10 percent, but it calls for payments every 6 months, beginning on June 30, and the mortgage is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house of 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: EM13478353

Questions Cloud

The companys stock has a beta equal to 12 the risk-free : a company currently pays a dividend of 2 per share d0 2. it is estimated that the companys dividend will grow at a
The trustee uses annual payments to retire portion of issue : a sinking fund can be set up in one of two ways1 the corporation makes annual payments to the trustee who invests the
What will be the value of each of these bonds when going : the garraty company has two bond issues outstanding. both bonds pay 100 annual interest plus 1000 at maturity. bond l
What are the required rates of return for stocks x and yc : you have observed the following returns over time2005 stock x 14 stock y 13 market 12. 2006 stock x 19 stock y 7 market
Suppose that your aunt sold her house on december 31 and : assume that your aunt sold her house on december 31 and that she took a mortgage in the amount of 10000 as part of the
Gary whitmore is a high school sophomore he currently has : computing annuity payments gary whitmore is a high school sophomore. he currently has 7500 in a savings account that
Christine is a new homebuyer she wants to make sure that : christine is a new homebuyer. she wants to make sure that she incorporates the cost of maintenance into her decision.
Given the following information prepare a statement of cash : given the following information prepare a statement of cash flows. increase in accounts receivable 25 increase in
Tus the total price is 660 and terry can pay it off in 12 : terry martinez is considering taking out a loan to purchase a desk. the furniture store manager rarely finances

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the economic order quantity

The product has carrying costs of $50 per unit per year and ordering costs of $300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic order quantity (EOQ).

  What would be the arbitrageur profit in dollars

What transactions should the United States arbitrageur undertake?

  Create a risk-free hedge portfolio can be created

Methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

  What is the future value of this cash flow stream

Now consider the uneven cash flow stream stemming from the lease agreement given in the case.

  Compensating balances and loan interest rate

What is the effective interest rate on the typical loan with a nominal 8% interest rate and a 10% compensating balance?

  What is the value of this endowment in todays dollars

what is the value of this endowment in today's dollars? Show your work.

  What was the firm free cash flow

In order to sustain its operations and thus generate future sales and cash flow, the firm was required to spend $15250 to buy new fixed assets and to invest $6850 in net working capital. What was the firm's free cash flow?

  What is the present value of the annuity

What is the after tax present value of the annuity if the investor is in the 28% marginal tax bracket?

  Calculate the present values of investment using future

Calculate the present values of investment using future values investments returns

  What is the cash flow for nimitz rental

For the year ended March 31, 2011, the company had revenues of $953,757, general and administrative expenses of $313,753, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses equal to $78,122. If the company's tax..

  Constant nominal policy-partial-adjustment strategy

Delta Corporation earned $2.50 per share during fiscal year 2008 and paid cash dividends of $1.00 per share. What is Delta's payout ratio for fiscal year 2008?

  What is the risk structure of interest rates

What is the risk structure of interest rates? And, what are the three major components that are included.

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