A lender issues a $190 loan to a borrower. There is a 85% chance the borrower...
A lender issues a $190 loan to a borrower. There is a 85% chance the borrower will make the full required loan repayment, and a 15% chance that the borrower will make a repayment of only $50. What is lowest loan repayment (principal + interest) the lender can afford to charge?
| $215 |
| $211.9 |
| $202.5 |
| $200 |
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A lender issues a $190 loan to a borrower. There is a 85% chance
the borrower...
A lender and a borrower signed a contract for a $1,000 loan for one year. The...
A lender and a borrower signed a contract for a $1,000 loan for one year. The lender asked the borrower to pay 3% interest. Inflation occurred and prices rose by 2% over the next year. At the end of the year, the borrower repaid $1,030 (principal + interest). What is the amount worth in real terms (i.e., after inflation)? $1,060.90. $1,050.60. $1,029.41. $1,009.80.
A bank issues a $150 loan to a borrower, who will repay the loan with probability...
A bank issues a $150 loan to a borrower, who will repay the loan with probability 0.78, and default and pay $0 otherwise. In this case, the most competitive interest rate the bank can afford to offer is answer choices 25.5% 26.5% 28.2% 29.9%
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal...
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TRUE OF FALSE QUESTIONS. 1 - When a loan is paid off over a shorter period...
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QUESTION 15 A loan has an APR of 85 percent and an EAR of 85 percent...
QUESTION 15 A loan has an APR of 85 percent and an EAR of 85 percent Given this the loan must have a one-year term have a zero percent interest rate charge Interest annually be partially amortized with each loan payment require the accrued Interest be paid in full with each monthly payment det of 532.500, and total of 8.700 h ory is $13.00, what is the current rutie QUESTION 17 Aberton's has total assets of 5537 000, nefesses of...
I just need question 14 13. John wants to buy a property for $105,000 and wants...
I
just need question 14
13. John wants to buy a property for $105,000 and wants an 80 percent loan for $84,000. A lender indicates that a fully amortizing! loan can be obtained for 30 years (360 months) at 8 percent interest; however, a loan fee of $3,500 will also be necessary for John to obtain the loan. a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid...
A balloon payment is a loan where you pay small amounts of the loan first and...
A balloon payment is a loan where you pay small amounts of the loan first and then, at the end of the loan, you pay a BIG portion of the acquired debt to liquidate it. Many times, in this type of loan, you pay the interest of the loan first and then, in the last installment, you pay the last part of the interest and the principal. You and your business partners are contemplating the purchase of a commercial building....
In this situation, you want to take out a 12 year loan for $215,000. The current interest rate is...
In this situation, you want to take out a 12 year loan for
$215,000. The current interest rate is 5.75%, and you will make
monthly payments.
1. Fill out the data variable (i have already filled out
the table please let me know what is wrong)!!!
2. Assuming you can afford a monthly payment of $3,000, which
loan term should you choose?
3. If you wanted to avoid paying more than $110,000 in interest,
which is the highest loan term...
1. Narelle borrows $600,000 on a 25-year property loan at 4 percent per annum compounding monthly....
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A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal rate of 7.9% per year, and repayment of the $7 million principal at the end of 13 years. The borrower plans to accumulate that principal for repayment at the end of 13 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 3.2% per year when compounded semiannually. What is the borrower's total cash outlay every 6...
QUESTION 15 A loan has an APR of 85 percent and an EAR of 85 percent Given this the loan must have a one-year term have a zero percent interest rate charge Interest annually be partially amortized with each loan payment require the accrued Interest be paid in full with each monthly payment det of 532.500, and total of 8.700 h ory is $13.00, what is the current rutie QUESTION 17 Aberton's has total assets of 5537 000, nefesses of...
I
just need question 14
13. John wants to buy a property for $105,000 and wants an 80 percent loan for $84,000. A lender indicates that a fully amortizing! loan can be obtained for 30 years (360 months) at 8 percent interest; however, a loan fee of $3,500 will also be necessary for John to obtain the loan. a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid...
A balloon payment is a loan where you pay small amounts of the loan first and then, at the end of the loan, you pay a BIG portion of the acquired debt to liquidate it. Many times, in this type of loan, you pay the interest of the loan first and then, in the last installment, you pay the last part of the interest and the principal. You and your business partners are contemplating the purchase of a commercial building....
In this situation, you want to take out a 12 year loan for
$215,000. The current interest rate is 5.75%, and you will make
monthly payments.
1. Fill out the data variable (i have already filled out
the table please let me know what is wrong)!!!
2. Assuming you can afford a monthly payment of $3,000, which
loan term should you choose?
3. If you wanted to avoid paying more than $110,000 in interest,
which is the highest loan term...
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