The margin on an adjustable rate mortgage is 4.5% and the rate cap is 5% over the life loan if the current index is 6.8% find the maximum overall rate as a percentage of the loan.

Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…

A: As per the information provided:  N = 48 R = 8% To determine: We have to estimate the annual…

Q: You are looking at a one-year loan of $18,000. The interest rate is quoted as 7.4 percent plus two…

A: Here,Loan Amount $ 18,000.00Interest Rate7.40%Lender Upfront Cost2%Time Period in years1Lender…

Q: Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when…

A: formula: A=P(1+rt) where, p=principal r=rate  t=time in years

Q: Consider a typical situation for a 30-year, $100,000 mortgage. This option offers an annual mortgage…

A: The APR is the reduced when the mortgage points are added to the original loan amount. We will see…

Q: Find the amount of interest and the maturity value of the following loan. Use the formula MV = P+ I…

A: Rate = 7% + (1/4)% Rate = 7% + 0.25% Rate = 7.25% ----------------------- Years = 4 + (1/2) Years =…

Q: A borrower gets a $75,000, 25 year, 13% loan with 4 points.  What is the true interest rate?

A: Given Information: Loan amount is $75,000 Number of years is 25 Interest rate is 13% 4 points on…

Q: A loan has an APR and EAR that are both 7%. Therefore, the loan must: Multiple Choice have a…

A: APR stands for Annual percentage rate and EAR stands for the effective annual rate. Annual…

Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…

A: Excel Spreadsheet:

Q: What is the Monthly Payment? In preparing an Income Statement, what is the Interest Expense for…

A:

Q: What is the maturity value on a 6-year loan for S7, 585 if the annual simple interest rate is 6.1%?…

A: Principal = $7,585Interest rate = 6.1%Time= 6 yearsMaturity value=?

Q: What is the monthly payment? b. What is the APR (annual percentage rate) if fully amortized? C.…

A: A.$143,667 B.7.23% C.7.23%

Q: Find the annual simple interest rate (in percent) on a 3 -month loan of \( \$ 5,000 \) if the…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: Use an amortization table (Use Spreadsheet application such as Excel) that determines the monthly…

A: Loans are paid by the same fixed monthly payments that carry the interest and loan payments.In this…

Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…

A: Given: Interest rate = 8.50% Amount borrowed = $42,000 Interest amount = $3,570 Net loan = $38,430

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: In a simple interest rate , the interest is not compounded.In Simple interest,Future value (A) =…

Q: Annual loan payment = $47,100 Number of remaining periods = 6 Interest rate = 12% What is the book…

A: Payment = p = $47,100Number of Payment = n = 6Interest Rate = r = 12%

Q: Give typing answer with explanation and conclusion If the annual payment mortgage constant for an…

A: Given: Loan Amount = $25,000,000 Mortgage Constant = 10.6% or 0.106 (decimal form)

Q: What is the effective interest rate (APY) for a loan of $8,500 at 12% APR compounded monthly? use…

A: We can use following formula to find the annual effective rate form given APR   I = (1 + ( r/n ))n…

Q: The margin on an adjustable-rate mortgage is 2.5% and the rate cap is 5% over the life of the loan.…

A:

Q: Suppose the future value of a 7.25% simple interest loan is $3,208.91 at the end of 185 days. Find…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: The margin on an adjustable-rate mortgage is 2.5% and the rate cap is 5% over the life of the loan.…

A: An adjustable-rate mortgage is a loan in which the interest rate on the loan keeps on fluctuating.…

Q: You get a 7.125% mortgage loan with front-end loan charges of $3,800. Will your APR be: (a) less…

A: There are various charges levied while taking loan such as front end loan charges

Q: Find the amount of interest and the maturity value of the following loan. Use the formula MV =P+I to…

A: Interest rate = 7% + (1/2)% Interest rate = 7.50% ------------------- Monthly rate = 7.50%/12…

Q: Find the effective yield on a discount loan with the given discount rate r and the time. (Round your…

A: We have to find the effective yield on a discount loan.

Q: a. What is the monthly payment? b.What is the APR (annual percentage rate) if fully amortized?…

A: Given data, Net Operating Income = $ 172,400 borrow funds at a 7.0% interest rate 25-year…

Q: The margin on an adjustable-rate mortgage is 2.5% and the rate cap is 5% over the life of the loan.…

A: In this case:Index Rate = 8.2%Margin = 2.5%Rate Cap = 5%

Q: Revenue Expenses: Answer is complete but not entirely correct. Quilcene Oysteria Revenue and…

A: Revenue and spending variance :— It is the difference between actual results and flexible budget.…

Q: Consider two loans with a 1-year maturity and identical face values: a(n) 8.3% loan with a 0.99%…

A: Effective annual rate:The “effective annual rate” (EAR) is a financial term used to represent the…

Q: What discount rate should a lender charge to earn an interest of 2 1/4 % on a 90-day loan? Hint:…

A: The question is related to discount rate.