3. Consider the following options available to a mortgage borrower: Loan Amount Interest Rate (%) 6.35 6.42 6.05 $150,000 $120,000 $145,000 Option 1 Option 2 Option 3 What is the effective annual rate for each option? Type of Mortgage 30-year fixed 30-year fixed 30-year fixed Discount Points 1 2 3

3. Consider the following options available to a mortgage borrower: Loan Amount Interest Rate (%) 6.35 6.42 6.05 $150,000 $120,000 $145,000 Option 1 Option 2 Option 3 What is the effective annual rate for each option? Type of Mortgage 30-year fixed 30-year fixed 30-year fixed Discount Points 1 2 3

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 5 Given the following information, calculate the loan-to-value ratio (LTV) ratio for this property. Assume that there are no discount points or other up-front financing costs associated with the mortgage. Acquisition price: Equity investment: Mortgage term: Mortgage interest rate: 33.3% 66.7% 50% 80% $675,000 $225,000 25 years 8.0% annually
Q 2 To borrow $750, you are offered an add on interest loan at 9.1 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) EQUAL PAYMENTS? Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR?
Q: Which Is the better option to consolidate debt? Option 1: You have a loan at $21,000 at 16.24% (APR) 3 year term, Making the minimum payment monthly. Option 2: You have two loans; 1: $10, 700 at 8.99% (APR), 3 year term, Making the minimum payment monlthy. 2: $ 10,300 at 12.24% (APR), 3 year Term, Making the minimum payment monthly. Which option saves the most in interest, which is the better option to save the most money?
Please correct answer and don't use hand rating
Compare 180,00 mortage options both having fixed rates Option 1 30 year loan with 9 % APR what are the monthly payments what is the total amount paid for option 1 Option 2 180,000 mortage 15 year fixed APR 7.8 what are the total payments for option 2 how many payments for option 2
Question 1: Part A. The current 10 year treasury note is approaching the important threshold of: a) 2.75% b) 2.95% c) 3.25% d) 2.0% Part B. In a real estate investment, you may want to obtain a mortgage. In so doing, which year would you expect to see the highest amount of principal pay-down (in a payment mix of principal and interest)? a) year 15 b) year 20 c) year 10 d) year 25Part C. In a Fast Market, you would rather sell a stock using a: a) Market Order b) Market On Close Order c) Limit Order d) Market On Open OrderPart D. Given that equity markets are asymmetric in their respective moves, markets are said to take________________________ a) the slow grind higher into perpetuity b) the stairs down and the elevator up c) the stairs up and your mom home d) the stairs up and the elevator down Part E. It is said that traders have come to employ the use of technical analysis potentially for all of the following reasons except:…
jagdish
Given the following Adjustable Rate Mortgage (ARM): Loan amount: Term: $100,000 20 years, monthly payment Discount point: 0 Origination fee: $8,000 Teaser rate: 7.25% Margin: 225 basis points Rate caps: 2.5% annually, 6% lifetime Market Index: 1 EOY Index 8.6% 9.5% 2 3 4 5 10.5% 11.5% 10.5% What are the proper interest rates for calculating the monthly payments from year 2 t lifetime cap) 10.85%, 11.75%, 12.75%; 13.75%; 12.75% 10%, 11.75%, 12.75%; 13.5%; 12.75% O None of the above is all correct O 9.75%, 11.75%, 12.75%, 13.25%, 12.75%
Question content area top Part 1 Calculate the monthly payments of a 3030-year fixed-rate mortgage at 6.006.00 percent for $136 comma 200136,200. How much interest is paid over the life of the loan? Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: LOADING... . Question content area bottom Part 1 The monthly payments of a 3030-year fixed-rate mortgage at 6.006.00% for $136 comma 200136,200 is $817.2817.2. (Round to the nearest cent.) Part 2 The amount of interest paid over the life of the loan is $enter your response here. (Round to the nearest cent.)

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