2. Jamie Lee and Ross are estimating that they will be putting $40,000 from their savings account toward a down payment on their home purchase. Using the traditional financial guideline suggestion of "two and a half times your salary plus your down payment," calculate approximately how much Jamie Lee and Ross can spend on a house.3. Using Your Personal Financial Plan Sheet 24, calculate the affordable mortgage amount that would be suggested by a lending institution and based on Jamie Lee and Ross’ income.
How does this amount compare with the traditional financial guideline found in Question #2?
Use the following amounts for Jamie Lee and Ross’ calculations:
• 10% down payment
• 28% for TIPI
• $500.00 per month for estimated combined property taxes and insurance
• 5% interest rate for 30 years

4. Jamie Lee and Ross found a brand new three-bedroom, 2 ½ bath home in a quiet neighborhood for sale. The listing price is $275,000. They would like to place a bid of $260,000 on the home. The seller’s counteroffer was $273,000. What should Jamie Lee and Ross do next to demonstrate to the owner that they are serious buyers?

5. Jamie Lee and Ross received a signed contract from the buyer accepting their $273,000 offer! The seller also agreed to pay two points toward Jamie Lee and Ross’ mortgage. Calculate the benefit of having points paid toward the mortgage if Jamie Lee and Ross are putting a $40,000 down payment on the home.

6.Calculate Jamie Lee and Ross’ mortgage payment, using the 5 percent rate for 30 years on the mortgage balance of $233,000.

Answers

Answer 1
Answer:

Answer:

Explanation:

2. Down payment is $40,000 Two and half times means 5/2 i.e. 5/2*$40,000 = $100,000...

5. One mortgage point costs 1% of the mortgage loan amount.

If Jamie Lee and Ross are putting a $40,000 down payment on a home with an accepted purchase price of $273,000, then the mortgage loan will be for $233,000.

$273,000 - $40,000 = $233,000.

Two points paid toward the mortgage will be a cost of $4,660 to the seller.

$233,000 x 0.02 = $4,660.

Typically, purchasing points means that a sum of money has been paid to the lender at closing to reduce the financing cost of the loan. The benefit of purchasing points is that it will secure a lower interest rate for the home buyers. In this sense, points are not put towards the mortgage loan itself, but are used to decrease overall expense to the home buyer over the term of a mortgage. A lower interest rate over the term of a mortgage can account for tens of thousands of dollars of saved interest.

If in this case the seller is simply giving money to the home buyers to put against the mortgage, then $4,660 will reduce the total loan amount to $228,340.

Although this question is somewhat ambiguously worded, it is more likely that the points are being purchased to secure a lower interest rate. While this doesn't represent an immediate windfall to the home buyers and does not decrease the mortgage loan amount, it would provide the greatest overall advantage to the home buyers.

I can't do 3,4,6  I'm very sorry about this man. I did my best but they come out wrong and I don't want to misguide you or mislead you in any way....

Very sorry!

Answer 2
Answer:

For the following:

  • 2. Jamie Lee and Ross can afford to spend approximately $250,000 on a house.
  • 3. The affordable mortgage amount for Jamie Lee and Ross is $233,000.
  • 4. Jamie Lee and Ross should make a written offer to the seller, stating their willingness to pay $260,000 for the home and including a deposit of $1,000.
  • 5. The benefit of having points paid toward the mortgage is that it will lower the interest rate on the loan by 0.25%.
  • 6. Jamie Lee and Ross's monthly mortgage payment will be $1,378.

How to solve for the financial details?

2. For Jamie Lee and Ross's combined income. Using the traditional financial guideline, they can afford:

Two and a half times Jamie Lee and Ross's salary is $2.5 × $100,000 = $250,000.

Jamie Lee and Ross's down payment is $40,000.

So, the maximum amount they can afford to spend on a house is $250,000 + $40,000 = $290,000.

3. Using Your Personal Financial Plan Sheet 24, the affordable mortgage amount for Jamie Lee and Ross is:

Monthly debt-to-income ratio (DTI): 28%

Monthly mortgage payment: $1,800

Monthly property taxes and insurance: $500

Down payment: 10%

Loan amount: $233,000

The DTI is calculated by dividing the monthly mortgage payment, property taxes, and insurance by the monthly income. In this case, the DTI is 28%, which is the maximum DTI that most lenders will allow.

The monthly mortgage payment is calculated by multiplying the loan amount by the interest rate and the number of years. In this case, the monthly mortgage payment is $1,800.

The property taxes and insurance are estimated to be $500 per month.

The down payment is 10% of the purchase price, or $23,300.

The loan amount is the purchase price minus the down payment, or $275,000 - $23,300 = $233,000.

4. Jamie Lee and Ross should make a written offer to the seller, stating their willingness to pay $260,000 for the home. They should also include a deposit of $1,000 to show that they are serious buyers.

5. The benefit of having points paid toward the mortgage is that it will lower the interest rate on the loan. Two points on a $233,000 loan is equal to $4,660. This means that Jamie Lee and Ross's interest rate will be 0.25% lower, which will save them money on their monthly mortgage payments.

6. For Jamie Lee and Ross's monthly mortgage payment:

Principal: $233,000

Interest rate: 5%

Number of years: 30

Monthly payment: $1,378

The principal is the amount of money that Jamie Lee and Ross are borrowing from the lender. The interest rate is the percentage of the principal that the lender charges in interest each year. The number of years is the length of the loan. The monthly payment is the amount of money that Jamie Lee and Ross will pay to the lender each month.

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An import restriction (tariff or quota) creates a net loss in welfare for the importing nation because:___________ a. Domestic production rises in the importing country
b. Income is transferred from consumers in the importing nation to domestic producers
c. Income is transferred from consumers in the importing nation to their government
d. All of the above
e. None of the above

Answers

Answer:

Explanation:

An import restriction as the term implies is done to limit the amount of a certain good that is imported into the country. Usually this is done to protect the domestic producers of the good in question who are not be as efficient as the country being imported from and so charge higher prices.

The people in the economy will experience a net loss in welfare because they will now be paying higher prices and as well will be transferring some of their income to their government because import restrictions like tariffs will see their costs passed on to the consumer.

The Sherman Anti-Trust Act does not prohibit: Group of answer choices a manufacturer from having a natural monopoly over its own product a seller to dominate a market because of superior product or business a manufacturer to sell only through a particular distributor all of the above

Answers

Answer: All of the above

Explanation:

The Sherman Antitrust Act outlawed trusts. These are the groups of businesses that fine together to form a monopoly so that they can dictate price.

The purpose of the Act's was firctgr promotion of economic fairness and competitiveness. The Sherman Anti-Trust Act does not prohibit a manufacturer from having a natural monopoly over its own product.

Also, it doesn't prohibit a seller to dominate a market because of superior product or business a manufacturer to sell only through a particular distributor.

Therefore, the correct option is "All of the above".

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:U.S. LDC
Sales (units) 100,000 20,000
Labor (hours) 20,000 15,000
Raw materials (currency) $20,000 FC 20,000
Capital equipment (hours) 60,000 5,000
a. Calculate partial labor and capital productivity figures for the parent and subsidiary. Do the results seem confusing?
b. Compute the multifactor productivity figures for labor and capital together. Do the results make more sense?
c. Calculate raw material productivity figures (units/$ where $1=FC 10). Explain why these figures might be greater in the subsidiary.

Answers

Answer:

a. Labor Productivity:

Country     Sales (Units)    Labour (hours)     Productivity (Sales/Labour hours)

U.S              100,000              20,000              5 units / hours

LDC             20,000                15,000               1.33 units/ hours

Capital Productivity

Country     Sales (Units)    Capital (hours)     Productivity (Sales/Capital hours)

U.S              100,000               60,000                1.67 units / hour

LDC             20,000                 5,000                  4 units / hours

Conclusion: Yes, the result seems confusing. The labour productivity in U.S. is higher than LDC while the capital productivity in U.S. is lower than LDC which is contradictory.

b. Multi-factor productivity for Labor and Capital

Country      Sales                  Input                  Productivity

                  (Units)         (Labor + Capital)       (units/hours)

U.S.          100,000                80,000                1.25 units/hour

                                       (20,000 + 60,000)

LDC           20,000                 20,000                1 units/hour

                                        (15,000 + 5,000)

Conclusion: Yes it make sense as multi-factor productivity is better than partial productivity. Labor and capital are subtitles and that gives better presentation of the productivity.

c. Raw material productivity

Country      Sales           Raw material            Productivity

                  (Units)            (Currency)              (units/hours)

U.S.            100,000         $20,000                  5 units per dollar

LDC            20,000          = $2,000                 10 units per dollar        

Conclusion: The figures are greater in subsidiary because the price paid for raw material is much slower than the parent country.

 

Note: $1 = FC 10

$20,000 = FC 10

FC = $20,000 / 10 = $2,000

Newark Company has provided the following information: Cash sales, $500,000 Credit sales, $1,400,000 Selling and administrative expenses, $380,000 Sales returns and allowances, $95,000 Gross profit, $1,410,000 Increase in accounts receivable, $60,000 Bad debt expense, $38,000 Sales discounts, $48,000 Net income, $1,030,000 How much cash was collected from customers

Answers

Answer:

$1,840,000

Explanation:

The computation of the cash collected from customers is shown below:

Cash collected from customers = Cash sales + credit sales - increase in account receivable

= $500,000 + $1,400,000 - $60,000

= $1,900,000 - $60,000

= $1,840,000

By adding the cash sales, credit sales and deduct the increase in account receivable we can get the cash collected from customers and the same is shown above

Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.

Answers

Answer:

A = $3136.51875

Explanation:

Given that :

The principal = $3,000.00

Rate = 9%

Time = 6 months

Since the amount is compounded quarterly;

r = 9/4 = 2.25 %

t = 6 months = 2 quarter

Using the formula:

A = P(1+r/100)^t

A = 3000.00(1+ 2.25/100)^2

A = 3000.00( 1+ 0.0225)^2

A = 3000.00 (1.0225)^2

A = 3000.00 (1.04550625)

A = $3136.51875

The transactions of Spade Company appear below. (a) Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.(b) The company purchased office supplies for $1,250 cash.(c) The company purchased $10,050 of office equipment on credit.(d) The company received $15,500 cash as fees for services provided to a customer.(e) The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction (f) The company billed a customer $2,700 as fees for services provided.(g) The company paid $1,225 cash for the monthly rent.(h) The company collected $1,125 cash as partial payment for the account receivable created in transaction (i) The company paid $10,000 cash in dividends to the owner (sole shareholder). Check Cash ending balance, $94,850 Prepare the Trial Balance

Answers

Answer:

Explanation:

Journal entry

a. Dr Cash 100750

               Cr Capital- Kacy spade 100750

(Investment in company)

b. Dr Office supplies 1250

                          Cr Cash     1250

(to purchase office supplies on cash)

c. Dr Office equipment 10050

                   Cr Accounts payable  10050

( To record purchase of office equipment)

d. Dr Cash  15500

                       Cr Service fee income   15500

     ( To record service provided to customer)

e. Dr Accounts payable  10050

                   Cr Cash                   10050

( To record payment of office equipment purchase)

f. Dr  Account receivable  2700

                           Cr Service revenue    2700

(To record service revenue)

g. Dr Rent expense 1225

                 Cr Cash           1225

( To record rent expense on cash)

h. Dr Cash 1125

              Dr Account receivable 1125

         ( To record  partial collection of receivable )

i. 1) Dr Retained earning  10000

                             Cr Dividend payable   10000

( To record dividend yet to be to shareholder )

 2.) Dr Dividend payable   10000

              Cr    cash                       10000      

 ( To record  Payment of cash dividend)

  Cash                                                                     capital-kacy spade

Dr____________Cr___                                     ___ DR ___________Cr

100750  ---  1250                                                                    --100750

15500 ---10050

           ---1225

1125-- 10000

Office supplies                                                             Office equipment

Dr ____________Cr__                                           __ Dr _____________Cr

1250--                                                                       10050---

Accounts payable                                                       Service fee income

Dr_____________Cr_                                               __ Dr ___________Cr_

   10050       ---- 10050                                                                   ---- 10050

                                                                                                    ---2700

Service revenue                                                            Account receivable

Dr_____________Cr__                                          _ Dr ______________Cr

                --                                                                    2700----1125

rent expense                                                             retained earning

Dr____________Cr__                                              _ Dr __________Cr__  

1225--                                                                        10000 ---- 10000

Dividend payable

Dr_______________Cr  

10000 --- 10000

Trial Balance

Cash       94850                                      100750     Capital-Kacy spade

Salary expense                                                

Rent expense  1225                                                  Account payable

Office Equipment  10050                                    Retained earning

Prepaid insurance                                          12750  Service revenue

office supplies  1250                                                   Dividend payable

Account receivable  1575

total 108950 =  108950

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