Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.
You need a ?$200,000 loan.
Option? 1: a? 30-year loan at an APR of 9.5?%.
Option? 2: a? 15-year loan at an APR of 9%.
Find the monthly payment for each option.
The monthly payment for option 1 is ?$
The monthly payment for option 2 is ?$
?(Do not round until the final answer. Then round to the nearest cent as? needed.)
Find the total amount paid for each option.
The total payment for option 1 is ?$
The total payment for option 2 is ?$
?(Use the answers from the previous step to find this answer. Round to the nearest cent as? needed.)
Compare the two options. Which appears to be the better? option?
A. Option 2 is the better? option, but only if the borrower can afford the higher monthly payments over the entire term of the loan.
B. Option 1 is the better? option, but only if the borrower plans to stay in the same home for the entire term of the loan.
C. Option 2 will always be the better option
D. Option 1 will always be the better option.
2. Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.
You need a ?$80,000 loan.
Option? 1: a? 30-year loan at an APR of 5.55?%.
Option? 2: a? 15-year loan at an APR of 5.15?%.
Find the monthly payment for each option.
The monthly payment for option 1 is ?$
The monthly payment for option 2 is ?$
?(Do not round until the final answer. Then round to the nearest cent as? needed.)
Find the total amount paid for each option.
The total payment for option 1 is ?$
The total payment for option 2 is ?$
?(Use the answers from the previous step to find this answer. Round to the nearest cent as? needed.)
Compare the two options. Which appears to be the better? option?
A. Option 2 is the better? option, but only if the borrower can afford the higher monthly payments over the entire term of the loan.
B. Option 1 is the better? option, but only if the borrower plans to stay in the same home for the entire term of the loan.
C. Option 2 will always be the better option
D. Option 1 will always be the better option
\f- Advanced Micro Devices TAXAS Instruments 2008 200 2007 200 2008 2008 200 2007 Total assets $ 7.675.0 100.0% $ 11.850.0 100.0% $ 11.9830 100.0% $ 12,647.0 100.015 Total liabilities 27,7570 101. 125 8,560.0 215970 21.8%E 2169270 2134 Total owners' equity $ (82.0) 2.980.0 25.0%/S 8 326.0 8.975.0 78.79 Total liabilities and owners equity $ 7,676.0 100.0% 5 11,650.0 . 100.094 5 11,9230 100.0% $ 126670 100.0% REQUIRED Income statement questions: 1. For 2008, which company has higher total revenues? Are total revenues for each company higher or lower over the two year period? 2. What is the percent change in total revenues from 2007 to 2008 for each company? 3. Is the percent of total expenses to total revenues for each company increasing or decreasing over the two year period? Balance sheet questions: 4. For 2008, which company has higher assets? Are total assets for each company higher or lower over the two year period? 5. What is the percent change in total assets from 2007 to 2008 for each company? 6. Is the percent of total liabilities to total liabilities + owners' equity increasing or decreasing? As a result, is there more risk that each company could not pay its debts? Integrative income statement and balance sheet questions: 7. Are the companies operating efficiently by using the least amount of asset investment to generate a given level of total revenues? Compute total asset turnover for each company for 2008m... mmmmmnm 33%....\"- m\" mmmmmmw REQUIRED Inoome statement questions: "I. Are total revenues for Wat-Hart higher or tower over the four year period? 2. 1ll'tlhat is the percent change in total revenues from 2006 to 2009? 3. Is the percent of total expenses to total revenues increasing or decreasing over the four year period? Balance sheet questions: 4. Are total assets for Wat-M art higher or tower over ttre four year period? 5. 1ll'tlhat is the percent change in total assets from 2:106 to 20W? B. Is the percent of total liabiities to total liabilities + owners' equity:I increasing or decreasing? As a reth is there more risk that Wat-Mart could not pay its debts? Integrative income statement and balance sheet questions: I. Is Wat-Mart operating more or less efciently from sun? to 200-9 try using the least amount of asset investment to generate a given level of total revenues? Apps ) New Tab CanipeWhitney 0 Shared with Sydney Following is a series of independent cases. In each situation, indicate the cash distribution to be made at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. a. The Simon, Haynes, and Jackson partnership presently reports the following accounts, Jackson is personaly insolvent and can contribute only an additional $10,000 to the partnership. Simon is also insolvent and has no available funds. $ 50,000 Liabilities 42,000 Haynes, loan 50,000 Simon, capital (40%) 36.000 Haynes, capital (2096) (26,000) Jackson, capital (40%) (52,000) Simon, Haynes, Capital Loan and Jackson. Capital Capital Beginning balances Contribution by Jackson Capital balances Elimination of Jackson's deficit Final distribution b. Hough, Luck, and Cummings operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership's property. The partners have prepared the following balance sheet: Cash $ 40,000 Liabilities $ 36,000 Hough, loan 41,000 Luck, loan 30.000 Noncash assets 202,000 Hough, capital (50%%) 150,000 Luck, capital (40%) 26,000 Cummings, capital (10%) 41.000 Total assets $283,000 Total Habilities and capital $283,000 The firm sells the noncash assets for $100,000; it will use $41,000 of this amount to pay liquidation expenses, All three of those partners are personally insolvent. Allocation based on 50:40:10 for Hough, Luck and Cummings capital respectively. Hough, Loan and Luck, Loan cummings, and Capital Capital Capital Beginning balances Loss on disposal Liquidation exporises Capital balances Allocation of Luck's deficit Final distribution O Type here to searchC O extomheducation.com/rimipx Apps [ New Tab CamipeWhitney 1 Shared with Sydney c. Hough, Luck, and Cummings operate a local accounting firm as a partnership. After working together for several yours, they have decided to liquidate the partnership's property. The partners have prepared the folowing balance sheet 540 000 Liabison $ 30,000 Cash 30,000 Hough, loan 41000 Luck, loan 150,000 Noncash ajob 202 000 Hough, capital Luck, capital 241000 Cummings, capital 41 040 Total mascots $20 007000 Toil Habilrios and capital $283,000 Assume that the profits and losses are split 2:4:4 to Hough, Luck, and Cummings, respectively, and that quidation expenses are only $26,000. The firm sells the noncash assets for $100,000; All three of thong partners are personally insolvent. (Do not round intermediate calculations. ] Hough, Luck, Loan Cummings, Loan and and Capital Capital Capital Beginning balancing Lose on disposal Liquidation expenses Capital balances Allocation of Cummings' deficit balance Capital balances Allocation of Luck's deficit balance Final distribution d, Following the liquidation of all poncash astols, The parmership of Redmond, Ledbetter. Watson, and Sandridge has the following account balances Redmond, loan Rodmond, capital post 181 000) Ledbatter, social CION] Hutton, capital (30) 5000 Sandridge, capital MOT 35090 Redmond is personally intoivent Redmond, Loan and Ledbetter, Watson, Sandridge, Capital Capital Capital Capital Mlocation of Redmond's deficit balance Capital balances Contribution by Ledbuffer and Watson Final distribution Plotarences .Book & Resources Problem liquidation Lolming Objective: 15-01 Determine amounts to be puld to partner Type here to search e 9
