tailieunhanh - Lecture Practical business math procedures (11/e) - Chapter 15: The cost of home ownership

Lecture Practical business math procedures (11/e) - Chapter 15: The cost of home ownership. In this chapter students will be able to: List the types of mortgages available, utilize an amortization chart to compute monthly mortgage payments, calculate the total cost of interest over the life of a mortgage,. | THE COST OF HOME OWNERSHIP Chapter Fifteen Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 1 LU 15-1: Types of Mortgages and the Monthly Mortgage Payment Learning unit objectives LU 15-2: Amortization Schedule -- Breaking Down the Monthly Payment Calculate and identify the interest and principal portion of each monthly payment. Prepare an amortization schedule. List the types of mortgages available. Utilize an amortization chart to compute monthly mortgage payments. Calculate the total cost of interest over the life of a mortgage. 2 15- Finance charge (FC) – the interest charge. FC = Total of all -- Amount monthly payments financed Installment loan – a loan paid off in a series of equal periodic payments. Payments include interest and principal. Amount financed (AF) – the amount actually borrowed. AF = Cash Price -- Down Payment Deferred payment price (DPP) – the total of all monthly payments plus the down payment. DPP = Total of all + Down . | THE COST OF HOME OWNERSHIP Chapter Fifteen Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 1 LU 15-1: Types of Mortgages and the Monthly Mortgage Payment Learning unit objectives LU 15-2: Amortization Schedule -- Breaking Down the Monthly Payment Calculate and identify the interest and principal portion of each monthly payment. Prepare an amortization schedule. List the types of mortgages available. Utilize an amortization chart to compute monthly mortgage payments. Calculate the total cost of interest over the life of a mortgage. 2 15- Finance charge (FC) – the interest charge. FC = Total of all -- Amount monthly payments financed Installment loan – a loan paid off in a series of equal periodic payments. Payments include interest and principal. Amount financed (AF) – the amount actually borrowed. AF = Cash Price -- Down Payment Deferred payment price (DPP) – the total of all monthly payments plus the down payment. DPP = Total of all + Down monthly payments payment Cost of Installment Buying 3 Amortization Chart (Table ) (Partial) (Mortgage principal and interest per $1,000) 4 Computing the Monthly Payment for Principal and Interest Gary bought a home for $200,000. He made a 20% down payment. The 9% mortgage is for 30 years (30 x 12 = 360 payments). What are Gary’s monthly payment and total cost of interest? 5 Step 2. Look up the rate (9%) and the term (30 years) in the amortization chart. At the intersection is the table factor. $ Step 3. Multiply Step 1 by the factor in Step 2. $160 x $ = $1, Step 1. Divide the amount of the mortgage by $1,000. $160,000 = $160 $1,000 Computing Monthly Payment by Using an Amortization Chart 6 Computing the Monthly Payment for Principal and Interest $160,000 = 160 x $ (table rate) = $1, monthly payment $1,000 Total payments Mortgage Total interest $463,680 -- $160,000 = $303,680 ($1, x 360) 7 Effect of Interest Rates on Monthly Payments (Table ) 8 .

• Quản trị kinh doanh
• Practical business
• Math procedures
• Practical business math procedures
• Home ownership
• Monthly mortgage payment
• Amortization schedule
• Business statistics
• Frequency distributions
• Measures of dispersion
• Practical business Japanese
• Ebook Practical business Japanese
• Telephone conversation
• Making a request
• Placing orders
• Business Japanese
• Communicating information
• Expressing opinions
• Exchanging opinions
• Sinking funds
• How to read
• Auto insurance
• Interpret financial reports
• Whole numbers
• Their applications
• Simple interest
• Promissory notes
• Simple discount notes
• Rounding whole numbers
• Dividing whole numbers
• Subtracting whole numbers
• Types of fractions
• Subtraction of fractions
• Adding of fractions
• Rounding decimals
• Decimal conversions
• Dividing decimals
• Checking account
• Bank statement
• Reconciliation process
• Latest trends
• Solving equations
• Solving word problems
• Solving Equations for the unknown
• Percents and their applications
• Rounding percents
• Converting percents to decimals
• Trade discounts
• Cash discounts
• Credit terms
• Perishables analysis
• Breakeven analysis
• Markup based on cost
• Computing payroll deductions
• Employees’ pay
• Employees’ gross pay
• Maturity value
• Simple interest formula
• Discount process
• Compound interest
• Present value
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• Ordinary annuity
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• Installment buying
• Cost of installment buying
• Revolving charge credit cards
• Balance sheet
• Income statement
• Straight line method
• Units of production method
• Declining balance method
• Assigning costs
• Retail method
• Inventory turnover