What will your monthly payments be

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Reference no: EM131985963

1. Suppose you are buying your first home for $240,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

a. $1,434.95

b. $1,441.35

c. $1,428.55

d. $1,409.35

e. $1,422.15

2. LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $560,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?

a. 7.66%

b. 9.82%

c. 6.94%

d. 9.10%

e. 8.38%

Reference no: EM131985963

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