Author Question: A home equity loan A) is a special type of second mortgage on your home. B) can no ... (Read 150 times)

NClaborn

  • Hero Member
  • *****
  • Posts: 560
A home equity loan
 
  A)
 
  is a special type of second mortgage on your home.
  B)
 
  can no longer provide tax-deductible interest payments.
  C)
 
  has a fixed term with fixed installment payments.
  D)
 
  exceeds owner's equity in the home.

Question 2

Eastinghome Inc. just paid 8,000 to a landowner to explore for but not extract valuable minerals. If the landowner invests the money at a rate of 5.5 compounded annually for 7 years what is the investment worth at the end of that time period?
 
  A) 5,499.49
  B) 11,637.43
  C) 56,000.00
  D) 66,135.15



kristenb95

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

A

Answer to Question 2

B
Explanation: B) Via Calculator: N = 7, I = 5.5, PV = 8,000, Solve for FV = 11,637.43.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

For a complete list of videos, visit our video library