investor has $60,000 to invest in a$280,000 property. He can obtaineither (option A) a $220,000 loan at 9.5percent for 20 years; or (option B) a$180,000 loan at 8.8 percent for 20years and a second mortgage for$40,000 at 13 percent for 20 years. Allloans require monthly payments andare fully amortizing.Refer to the same question, what is theeffective cost % for option B if thesecond mortgage in option B had a 10-year term instead? Note that the firstoption in option B still had 20-yearterm.7.54%10.00%8.30%9.05%

Given: Investor=$60,000 To find: Second mortgage at 10 year

Answered: investor has $60,000 to invest in a…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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You are tasked with calculating the property tax needed to fund construction and operation of a $22.5 million complex. The facility’s annual operating budget is forecast at $3.6 million, to be covered by revenues from programs offered at the facility. A 30-year general obligation bond with a rate of 5.5% will be issued to pay for the facility’s construction costs. The net assessed value of property in the municipality is $725 million. 3. For an owner of property with a total assessed value of $15,000, by how much will his/her property tax increase
Mr Bullock wants to purchase a car which costs $200,000 and requires 20% down payment. Period of loan is for 3 years and compounded semi-annually at an interest rate af 12%. Make an amortization table and graph interest and principal payments.
You may remember seeing home mortgage interest rates fluctuate widely in a period of not too many years. Refer to the following tables, which compare the amortization of a $120,000, 30-year mortgage for rates of 4.0% and 12.5%. Give the monthly payments for each of the following for (a) a 4.0% rate, and (b) a 12.5% rate.
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Scenario 2: You need a $12,000 loan to buy a good used car. Your bank offers a 3-year loan with an APR of 5% and a 5-year loan with an APR of 8%. Find the monthly payment and total interest paid for each loan option. Which would you choose? What is the better deal?
Tower Distributors provides logistical services to local manufacturers. Tower picks up products from the manufacturers, takes them to its distribution center, and then assembles shipments to retailers in the region. Tower needs to build a new distribution center; consequently, it needs to make a decision on how many trucks to use. The monthly amortized capital cost of ownership is $2,100 per truck. Operating variable costs are $1 per mile for each truck owned by Tower. If capacity is exceeded in any month, Tower can rent trucks at $2 per mile. Each truck Tower owns can be used 10,000 miles per month. The requirements for the trucks, however, are uncertain. Managers have estimated the following probabilities for several possible demand levels and corresponding fleet sizes.Requirements (miles/month) 100,000 150,000 200,000 250,000Fleet Size (trucks) 10 15 20 25Probability 0.2…
You are considering a mortgage for 15 years with initial value $200, 000, and annual interest rate 9.75%. You can reduce your interest rate by buying points. The bank will sell you a point for 1% of the initial value of the loan. Each point you buy reduces your interest rate by 0.15%. You are considering buying 1 point. If you buy these points, how long until your lower monthly payments pay back the cost for these points?
A simple interest loan has a maturity value of $60,000, and rate of 8%, and time of 240days. Find the interest.[Give answer to two decimal places] A 200-day note has interest of $8000 and a rate of 10%. Find the maturity. [Give answer to two decimal places] Lupe Gonzalez has $15000 in her retirement account. Find the interest rate required for the fund to grow to $20000 in 18 months. [Give answer to three decimal places] Find the maturity of a loan with principal $10000 at 12% from February 5th 2012 toAugust 24th 2012. [Give answer to two decimal places] Find the simple interest for the following: A promissory note for $8500 at 7.3% made onSeptember 22nd and due March 6. [Give answer to two decimal places]

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