What is the total amount of interest that was paid

Assignment Help Finance Basics
Reference no: EM131100579

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: EM131100579

Questions Cloud

How can you facilitate toni in establishing trust and safety : Assume you are leading this group and during the check-in several members emphatically stated that they are not getting what they want and they are not sure that they will remain in it. What would you say - How would you deal with a member's conce..
What fraction of the payment made at the end : Your company is planning to borrow $1,000,000 on a 5-year, 15%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?
Effect on equilibrium price and output : Explain why in the short run a lump sum tax will have a bigger effect on equilibrium price and output than it will in the long run.
How many directors can mrs clark be sure of electing : How many directors can Mrs. Clark be sure of electing? How many directors can Mr. Deltic and his friends be sure of electing? How many directors could Mrs. Clark elect if she obtains all the proxies for the uncommitted votes?
What is the total amount of interest that was paid : 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 ..
Derive an expression for the phase-conjugate reflectivity : [Hint: This problem can be solved using the formalism developed in Section 6.3. This problem has been solved in the scientific literature, and the solution is given by Abrams and Lind, 1978.]
Contrast the biases of availability heuristics : Compare and contrast the biases of availability heuristics, representative heuristics, and escalation of commitment in the decision-making process.
Explain to her about the rh factor : She has heard that there may be a problem with the baby. Explain to her about the Rh factor and how this situation is taken care today.
They are a good investment. what is their present value : Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling some securities that call for four payments, $50 at the end of each of the next 3 years, plus a payment of $1,05..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is forecasted eva for 2012

Research and development expenditures in 2010 and 2011 were 1,200,000 and 2,200,000 respectively. In calculating EVA, prior research and development will be capitalized and amortized assuming a three-year life.

  Time value of money risk and returns financial analysis bon

Time value of money risk and returns financial analysis bonds

  What is the eoq for this item

A local car manufacturing plant has a $75 per-unit per-year carrying cost on a certain item in inventory. This item is used at a rate of 50,000 per year. Ordering costs are $500 per order. What is the EOQ for this item?

  Two firms examined the same capital budgeting project

Two firms examined the same capital budgeting project which had an IRR of 19%. One firm accepted the project but the other rejected it. One of the firms must have made an incorrect decision.

  The risk-free rate is 4 the expected rate of return on the

the risk-free rate is 4. the expected rate of return on the stock market is 7. what is the appropriate cost of capital

  What was the return on the companys stock for the period

if during a period a company paid a dividend of 5 and the price per share was 60 at the beginning of the period and 75

  How effective each incentive has been in helping in job

Using different sources for scholarly articles, locate at least three real world examples of the various tax incentive strategies that public agencies use. Describe how the incentives function within the community they are in and how effective each i..

  Define free cash flow

Define free cash flow and explain why free cash flow it the most important measure of cash flow.

  Diversification of stock portfolio

Suppose the following two, completely separate, economies. The expected and volatility of all stocks in both economies is the same.

  What are the major accounts of the balance of payments

What are the major accounts of the balance of payments, and what transactions are recorded on each account? Why is it important for an international manager to understand the balance of payments?

  Herding/bandwagon effect and overreaction towards new inform

Herding/Bandwagon Effect: This is the tendency for individual traders to mimic the actions (rational or irrational) of the market. Individually, the trader would not necessarily have made the same choice.

  Recommending balanced scorecard to bp board

Barrel Products Plc (BP) is an international energy company, providing its customers with fuel for transportation, energy for heat and light, and petrochemical products for everyday items.

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