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."
Homework Answers
The answer is “FALSE”.
It should be noted that interest rates on GPM is fixed just like a standard FRM. The difference is that in case of GPM the payment starts low and then rises over time. It should be noted that the amount by which the payments will increase is fixed prior to the funding.
Add Answer to:
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,...
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 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)
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...
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) 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?
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...
Use Excel (PV, FV, or PMT) Let's say you are planning to purchase a house as...
Use Excel (PV, FV, or PMT)
Let's say you are planning to purchase a house as soon as your student loans are paid off in 8 years. After graduation, you plan to live in an apartment for $820 a month and your dream is to buy a home worth $240,000 in 8 years. Once your debt is paid off, you will combine your apartment payment with your former debt payment to pay for the mortgage. That does not mean it...
True or False: Annuities are unequal cash flows that go on for a finite period of...
True or False: Annuities are unequal cash flows that go on for a finite period of time. True or False: We can determine which “PMT” we’re being asked to solve for by noting what the problem provides in terms of r and n. True or False: "When given the annual withdrawals desired during the retirement period, the FVA tells us the amount we should have accumulated by the time we begin the retirement period. True or False: Given the...
Total points: 20 Important: You will not earn credits if you don't show your calculation stops. 1. Write down form...
Total points: 20 Important: You will not earn credits if you don't show your calculation stops. 1. Write down formulas related to the time value of money: (5 points) FV = PV = 2. Suppose, you have deposited $1000 in your Arvest bank account at 4% nominal interest rate. What is the future value (FV) of this amount in 5 years? (5 points) 3. Suppose, r=0.10. Should General Motors spend $150 million to build a factory that will yield $300...
Please show your work as a calculation for all steps. Thank you You have set your...
Please show your work as a calculation for all steps. Thank you You have set your sights on a house in an up and coming Sydney suburb that is selling for $650,000. You are very excited about the prospects of buying this house and negotiate a 25-year mortgage with 20% down and 5.2% p.a. interest rate, compounded monthly. B1. What will be the amount of your monthly payments? B2. For each month for the duration of your mortgage calculate how...
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)
Use Excel (PV, FV, or PMT)
Let's say you are planning to purchase a house as soon as your student loans are paid off in 8 years. After graduation, you plan to live in an apartment for $820 a month and your dream is to buy a home worth $240,000 in 8 years. Once your debt is paid off, you will combine your apartment payment with your former debt payment to pay for the mortgage. That does not mean it...
Total points: 20 Important: You will not earn credits if you don't show your calculation stops. 1. Write down formulas related to the time value of money: (5 points) FV = PV = 2. Suppose, you have deposited $1000 in your Arvest bank account at 4% nominal interest rate. What is the future value (FV) of this amount in 5 years? (5 points) 3. Suppose, r=0.10. Should General Motors spend $150 million to build a factory that will yield $300...
Most questions answered within 3 hours.
-
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 1 hour ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 2 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 3 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 3 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 5 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 5 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 6 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 6 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 7 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 7 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 7 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 8 hours ago