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please show your work Joe Burrow loans Kenyan Drake $400,000. Burrow accepts a 5% note, which requires quarterly interest payments for 10 years. The day
please show your work
Joe Burrow loans Kenyan Drake $400,000. Burrow accepts a 5% note, which requires quarterly interest payments for 10 years. The day after receiving the 6th interest payment, Burrow decides to sell the note to Rockland Trust. Rockland Trust agrees to purchase it to yield an 8% return. a. What is the amount that Joe Burrow will receive on the sale of the note to Rockland Trust? b. Prepare the entries that Joe Burrow and Rockland Trust will make on the day the note is sold to the bank. 4. Breece Hall is interested in buying a waterfront condo and has saved $100,000 for the down payment. His plans call for making additional monthly deposits into an investment account over the next 36 months. Breece Hall wants to make the purchase 48 months from today and wants to have $180,000 saved up for the down payment. a. What is the amount of each of the additional payments he must make for his plan to work out? Assume Breece can earn 2% annual return in his investment account. b. If Breece takes out a 30 -year, $720,000 mortgage at 4%, what will his mortgage payments be? c. Prepare an amortization schedule to prove that your answer is right and his mortgage will be paid off in 30 years. d. If Breece takes out a 20-year, $720,000 mortgage at 3.5%, what will his mortgage payments be? e. How much would Breece save if he took out a 20-year mortgage versus a 30-year mortgageStep by Step Solution
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