Homework Answers
Given.
Mortgage amount = $250000
Loan period = 30 years
Interest rate without points = 3.0%
interest rate with points = 2.85%
Point = 1 or 1% or 0.01
Solution :-
Thus,
net present value of paying the points is $2364
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Can I please get a how to for questions 29 and 30, using a
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7.If you had a 6.3 percent, $350,000 30-year fixed-rate mortgage, a. how long would it take...
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Can I please get a how to for questions 29 and 30, using a
BA11 Plus calculator.
c. An investrnent that has a l 0.2% nom d. A e. An investinent that las a 96% nominal rule and monthly compounding inal rate and annnal compounding n investment that has a 10%% nominal rate and semiannual compounding. You are buying a factory for $250,000 by paying 20% as a down payment, while the rest of the balance will be paid off...
9. You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price and monthly payments. You will not pay off the mortgage early. Your bank offers you the following two options for payment: i blaivini l Option1: Mortgage rate of 5.25 percent and I point. Option2: Mortgage rate of 5 percent and 2.5 points. bloy Trolovi po brol a. Calculate your...
7.If you had a 6.3 percent, $350,000 30-year fixed-rate mortgage, a. how long would it take before you had repaid half the loan balance due? (4 points) b. If you paid an extra $400 per month to reduce the principal due on the mortgage, how long would it take to repay 70% of the principal due? (4 points) c. If you paid an extra $400 per month to reduce the principal due on the mortgage, how long would it take...
ii. Frank Lewis has a 30-year, $100,000 mortgage with a nominal interest rate of 10 percent and monthly compounding. Which of the following statements regarding his mortgage is most correct? a. The monthly payments will decline over time. b. The proportion of the monthly payment that represents interest will be lower for the last payment than for the first payment on the loan. c. The total dollar amount of principal being paid off each month gets larger as the loan...
Frank Lewis has a 30-year, $100,000 mortgage with a nominal interest rate of 10 percent and monthly compounding. Which of the following statements regarding his mortgage is most correct? a. The monthly payments will decline over time. b. The proportion of the monthly payment that represents interest will be lower for the last payment than for the first payment on the loan. c. The total dollar amount of principal being paid off each month gets larger as the loan approaches...
A bondholder owns 10-year government bonds with a $1 million face value and a 4 percent coupon that is paid annually. The bonds are currently priced at $1,269,181 with a yield of 1.137 percent. The bonds have a duration of 8.59 years. If interest rates are projected to increase by 50 basis points, how much will the bondholder gain or lose? Select one: O a. gain $4,129 O b. gain $53,898 c. lose $53,898 O d. none of the options...
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