Suppose That You Want to Purchase a Home for $225,000 }">$\text { cellpadding="0" cellspacing="0" align }=\text { "center" width=" } 99 \% \text { " border="1"> }$

question 192

Multiple Choice

Suppose that you want to purchase a home for $225,000 with a 20-year mortgage at 12% interest. Suppose that you can put 10% down. Use the table and determine the amount of the down payment, the amount to be financed, the monthly payments, the total amount of interest, and the necessary monthly income for you to be able to afford this loan. }">$\text { cellpadding="0" cellspacing="0" align }=\text { "center" width=" } 99 \% \text { " border="1"> }$

$\text { Monthly Cost to Finance } \$ 1,000$

$\begin{array}{lrcrc} & {\text { Number of Years Financed }} \\\text { Rate of } & 5 \text { Years } & 10 \text { Years } & 20 \text { Years } & 30 \text { Years } \\\text { Interest } & \mathrm{N}=60 & \mathrm{~N}=120 & \mathrm{~N}=240 & \mathrm{~N}=360 \\6.0 \% & & & & \\7.0 \% & 19.33 & 11.10 & 7.16 & 6.00 \\8.0 \% & 19.80 & 11.61 & 7.75 & 6.65 \\9.0 \% & 20.28 & 12.13 & 8.36 & 7.34 \\10.0 \% & 20.76 & 12.67 & 9.00 & 8.05 \\11.0 \% & 21.25 & 13.22 & 9.65 & 8.78 \\12.0 \% & 21.74 & 13.77 & 10.32 & 9.52 \\& 22.24 & 14.35 & 11.01 & 10.29\end{array}$

• A) down payment=$22,500; financed=$202,500; monthly payments=$2,229.53; total interest=$332,586; monthly income=$8,422.65
• B) down payment=$22,500; financed=$247,500; monthly payments=$2,724.98; total interest=$406,494; monthly income=$5,339.85
• C) down payment=$22,500; financed=$247,500; monthly payments=$2,724.98; total interest=$406,494; monthly income=$7,569.38
• D) down payment=$22,500; financed=$225,000; monthly payments=$2,477.25; total interest=$369,540; monthly income=$6,881.25
• E) down payment=$22,500; financed=$202,500; monthly payments=$2,229.53; total interest=$332,586; monthly income=$6,193.13

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Definitions:

Jointly Controlled Entity

An entity that is operated and controlled through a contractual arrangement between two or more parties who have joint control.

AASB 11

An accounting standard issued by the Australian Accounting Standards Board that outlines the reporting requirements for parties involved in joint arrangements.

Joint Operation

A business activity owned and managed by two or more parties that share control, resources, and obligations directly.

Jointly Controlled Operations

A collaboration where the entities involved do not create a separate entity but rather operate under a joint agreement, sharing control, and responsibilities.