Imagine you have $50,000 for a house down payment for a $250,000 home. Now, go through the process of estimating the monthly payments on a 30-year, fixed-rate mortgage of $200,000 assuming your mortgage carries a 5% interest rate. (Since we emphasized annual rather than monthly payments in this class, imagine you were paying your mortgage once a year and then divide by 12 months.) If you pay off the mortgage after thirty years, how much will you have paid in interest beyond the price of the house itself?

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: