it is very important that you show your work from the calculations (right down what you...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation)
You wish to borrow $200,000 for 20 years at 7% interest rate and amortize the loan by making monthly payments. You also agree to make a balloon payment of $30,000 at the end of your last month (240th month). What will be your monthly payment?
Homework Answers
![Present value of balloon payment = $7,428.06 [ 30,000 = 1.00583^240 ] so, Amount to be repaid in monthly payments= $192,571.9](http://img.homeworklib.com/questions/ca163780-6e3e-11ea-8b4d-4d3509411001.png?x-oss-process=image/resize,w_560)
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it is very important that you show your work from the
calculations (right down what you...
You wish to borrow 200,000 for 20 years at 7% interest rate and amortize the loan...
You wish to borrow 200,000 for 20 years at 7% interest rate and amortize the loan by making monthly payments. You also agree to make a balloon payment of $30,000 at the end of your last month (240th month). What will be your monthly payment? (using financial calculator)
it is very important that you show your work from the calculations (right down what you...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation) NCP bank extend a $400,000, 20-year mortgage at 5%. The interest rate increases to 6% soon after origination. Suppose the loan is expected to be prepaid in 9 years. What is the loss (interest rate risk) to the bank from the mortgage?
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation) Suppose you make $65,000/year. You want to purchase a $300,000 house with a 90% LTV loan. The current 30-year FRM interest rate is at 6.5%. Your monthly insurance and property tax payment add up to $250. The lender allows a maximum Total Housing Expense to Income rate of 35%. Will you qualify for...
it is very important that you show your work from the calculations (right down what you...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation) Matt and Jane are in the market for mortgage. Matt expects to prepay his loan in 4 years while Jane expects to hold her loan for 15 years. Ceteris paribus (everything else being the same), which of the two, Matt or Jane, is more likely to choose an ARM over an FRM? Briefly...
it is very important that you show your work from the calculations (right down what you...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation) When you purchased your house 4 years ago, you took out a $300,000, 30 year FRM loan at 7.5%. You also paid 2 points to get this loan. Now you want to sell your house and buy another one. In order to do so, you must pay off the existing one. The loan...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,...
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,.....etc. in your calculation) True/False (explain): "The difference between an FRM (Fixed-Rate Mortgage) and a GPM (Graduate-Payment Mortgage) is that GPM's interest rate increases through time."
it is very important that you show your work from the calculations (right down what you used as PV, i FV, n, cash flows,...
it is very important that you show your work from the
calculations (right down what you used as PV, i FV, n, cash
flows,.....etc. in your calculation)
a. Given the following information, which ARM should have the lowest initial interest rate? ARMI ARM2 ARM3 % Margin above index 3% 2% 3% Adjustment Interval 6 months 1 year lyear Interest Rate Cap None 1% per year None (The three ARMs are identical in all other aspects) Briefly explain your answer! (2points)
4 Balloons You are an important local real estate investor; you just got a $10,000,000 balloon...
4 Balloons You are an important local real estate investor; you just got a $10,000,000 balloon loan to buy a new office building in your home town. The nominal maturity of the loan is 30 years, but the loan has a 10-year balloon payment. In other words, the loan will end at the end of the 10th year, and the outstanding balance will be paid off in a lump sum at that time. The interest on the loan is 6.7%...
1) You wish to borrow $150,000 from a lending institution for the purchase of a house....
1) You wish to borrow $150,000 from a lending institution for the purchase of a house. The bank will lend this amount at an Annual Percentage Rate of 4.5% to be paid-off with equal monthly mortgage payments over a 30-year period. This is a 4.5% APR, 30-year fixed-rate mortgage loan. You wish to know how this loan will affect your federal income tax burden, as only the interest paid on a home mortgage, not the principal, is tax deductible. Construct...
Show your work as much as possible below each question to get full credit (Le, you...
Show your work as much as possible below each question to get full credit (Le, you should provide information about PV: FV. PMT, I/Y, N ... before writing down your answer) 1. What is the present value of the following cash flow stream at a rate of 8.0%? Years: CFs: $2,450 $3,175 $4,400 2. You would like to travel in South America 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan...
it is very important that you show your work from the
calculations (right down what you used as PV, i FV, n, cash
flows,.....etc. in your calculation)
a. Given the following information, which ARM should have the lowest initial interest rate? ARMI ARM2 ARM3 % Margin above index 3% 2% 3% Adjustment Interval 6 months 1 year lyear Interest Rate Cap None 1% per year None (The three ARMs are identical in all other aspects) Briefly explain your answer! (2points)
4 Balloons You are an important local real estate investor; you just got a $10,000,000 balloon loan to buy a new office building in your home town. The nominal maturity of the loan is 30 years, but the loan has a 10-year balloon payment. In other words, the loan will end at the end of the 10th year, and the outstanding balance will be paid off in a lump sum at that time. The interest on the loan is 6.7%...
1) You wish to borrow $150,000 from a lending institution for the purchase of a house. The bank will lend this amount at an Annual Percentage Rate of 4.5% to be paid-off with equal monthly mortgage payments over a 30-year period. This is a 4.5% APR, 30-year fixed-rate mortgage loan. You wish to know how this loan will affect your federal income tax burden, as only the interest paid on a home mortgage, not the principal, is tax deductible. Construct...
Show your work as much as possible below each question to get full credit (Le, you should provide information about PV: FV. PMT, I/Y, N ... before writing down your answer) 1. What is the present value of the following cash flow stream at a rate of 8.0%? Years: CFs: $2,450 $3,175 $4,400 2. You would like to travel in South America 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan...
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