18. How long will it take you to breakeven assuming you take the refinanced loan scenario below? Current loan closing costs: 2 points New loan type: 15-year fixed rate Current loan original balance: $350,000 New loan interest: 5.00% Current loan balance: $263,993.63 New loan total fees: 2.5 points Current loan interest rate: 7.5% Individual discount rate: 6% Current loan payment: $2,447.25 28 months None of these are valid answers 30 months 29 months 31 months Income Tax Rate: 10%

Loan 1: $200,000 at 4.5% for 30 years, monthly payments, and no origination cost. APR = 4.80% Loan 2: $200,000 at 4.25% for 30 years, monthly payments, and no origination cost. What is the discount point charged on Loan 1 assuming there is no cost associated with the origination? How many points must be charged on the 2nd loan to equalize the APR on the two loans? Please show how to solve using an excel spreadsheet

You are considering the following fixed interest rate mortgage loan alternatives: Alternative 1: $180,000 initial loan balance 4.00% annual nominal interest rate 30-year amortization schedule $859.35 monthly loan payment Alternative 2: $195,000 initial loan balance 4.25% annual nominal interest rate 30-year amortization schedule $959.28 What is incremental cost of borrowing the additional $15,000?     (A) 0.58% --- Wrong (B) 4.25% (C) 5.8% --- Wrong (D) 7.01%

Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below.  Purchase Price    Down Payment   Add-On Interest Rate  Number of Payments $4280                      $350                           2.8%                       12 The APR for the loan amount is?

Given the following loan information: Annual loan payment = $47,100 Number of remaining periods = 6 Interest rate = 12% What is the book value of the loan?

TASK: 2 are mu pare Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions: 1. Loan Summary and schedule of Short term loan (20 marks) 2. Loan Summary and schedule of Long term loan (20 marks) Guidelines: 1. Suggested Short term Loan period is 1 year to 3 years 2. Suggested Long term Loan period is 7 years and above 3. Each loan summary should contains following points: a. What type of loan is chosen? b. Why it is chosen? C. Interest rate, number of years (loan period) and loan amount to be assumed and clearly stated d. Starting date and ending date of the loan period is to be mentioned 4. The payment schedule should cover the following: a. Serial No. b. Date (period) c. EMI amount (EMI = Equated Monthly Installments) d. Principal component of the EMI e. Interest component of the EMI f. Interest paid to date g. Principal paid- to date h. Principal…

Q.Considering the following information, what is the net benefit if the borrower refinances the loan (benefit analysis)? Initial Loan balance: 600,000 Initial loan term: 30 years Current Loan interest: 5.25% Remaining term on current loan: 15 years New loan term: 15 years New loan interest: 2.75% Cost of refinancing: 5% of the loan amount Expected holding period: 7 years Using Excel

Assume you are making 10% of downpayment of a loan of 48,965.30 what is my montly payment over the life of My loan purchase Please don't skip and give answer

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $42,000 and the interest rate is 8.50%, the borrower “pays” 0.0850 × $42,000 = $3,570 immediately, thereby receiving net funds of $38,430 and repaying $42,000 in a year.   a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)           b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 18.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

please answer in excel