Required information A-1 Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid balance. Consider a 6-year loan of $10,000 at 15% per year. If interest is charged on the unrecovered balance, what equal annual payment would be required to complete the repayment of the loan in 6 years?

Required information A-1 Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid balance. Consider a 6-year loan of $10,000 at 15% per year. If interest is charged on the unrecovered balance, what equal annual payment would be required to complete the repayment of the loan in 6 years?

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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4 Loan Amortization Table Prepare a Loan Amortization Table with a 30-year loan term, 3.5% interest rate, loan fee of 1.75%, $12,000,000 loan amount. Calculate the monthly loan payment, loan proceeds and the loan balance at the end of year 10.
Amortizing Loan Consider a 4-year amortizing loan. You borrow $351,000 initially, and repay it in four equal annual year-end payments. a. If the interest rate is 4.55%, calculate the annual payment. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment b. Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Time 0 Loan Balance Year-End Interest Due on Balance Year-End Payment Amortization of Loan $ $ $ $ 1234
follouting What is the annual interest rate following mortgage loan amount: $ 30,000 monthly payment : $250 30 years to maturity
Answer in typing
Mortgage Information: Interest Only Payments Initial Loan Amount: $22,000 Fully Amortizing Term: 30 years Fixed rate interest rate: 3.25% Fees at origination: 3rd party fees: $750. What are the monthly payments? O.a $59.58 O.b $131.91 O.c $715.00
Loan Amount Loan Term Fully Amortized Interest Rate Origination Fee Prepayment Penalty 7.5% 8.1% 9.6% Old Loan 4,000,000 30 years Yes 7% 3% 7% 10.1% New Loan What is the internal rate of return of refinancing the old loan at the end of Year 10? (choose the closest answer) 6.8% 20 years Yes 5.5% 4% 3%
Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a $18,000 loan given that the lender requires her to make annual end-of-year installment payments of $3,379. a. If the interest rate on the loan is 14%, how long will it take for her to repay the loan fully? b. How long will it take if the interest rate is 11%? c. How long will it take if she has to pay 18% annual interest? d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully. a. If Mia can borrow at an annual interest rate of 14%, the amount of time it will take for her to repay the loan fully is years. (Round to two decimal places.) C
Date Name Section 8.7 - Worksheet The Cost of Home Ownership Comparing Mortgage Interest for 30-year rate vs 15-year rate. In the lesson notes example, the $175,500 mortgage was financed with a 30-year fixed rate at 7.5%. The total interest paid over 30 years was approximately $266,220. a) Use the loan payment formula for installment loans to find the monthly payment if the time of the mortgage is reduced to 15 years. Round to the nearest dollar. b) Find the total interest paid over 15 years. c) How much interest is saved by reducing the mortgage from 30 to 15 years?
What is the effective yield to the lender through the date of prepayment on a $540,000 fixed rate mortgage loan fully amortizing over 30 years but paid off after 10 years if the stated annual interest rate is 6.50%, the lender charges 2.0% as an origination fee, $720 for an appraisal and $36 for a credit report and there is no prepayment penalty? -6.81% -6.71% -6.30% -6.50%
Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a $18000 loan given that the lender requires her to make annual end-of-year installment payments of $3906. a. If the interest rate on the loan is 11%, how long will it take for her to repay the loan fully? b. How long will it take if the interest rate is 8%? c. How long will it take if she has to pay 14% annual interest? d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.
Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Principal $42,000 Interest rate 14% www The amount of the equal, annual, end-of-year payment, CF, is $ Term of loan (years) 20 (Round to the nearest cent.)
FHA Mortgage Lender's Perspective Annual Rate Monthly Rate Term Years Term Months Price Percent Down Down Payment Mortgage Amount Monthly Payment Up Front MIP Up Front Cost Annual MIP Rate Monthly Rate Monthly MIP Marginal Tax Rate HomeAppreciation Rate Monthly Rate 1 Complote the input table 2 Complete the amortization table for the 15 -year mortgage 3 Complete Column L.

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