Use the following information to answer the next 3 questions. $280,000 Loan Amount 30 year loan with monthly payments 4% quoted rate on the loan (annual rate) 2 points in costs to the lender $3,000 in other closing costs Loan is to be paid off at the end of the 4th year. What is the balance remaining on the loan after 4 years? What is the Lender's Yield? What is the Borrower's Cost? Fill this out: Loan Amount: Loan Term: Interest Rate: Lender's Points: Additional Closing Costs: Paid off in: NI/Y Loan Pay Off: Lender's Yield: Borrower's Cost:
Use the following information to answer the next 3 questions. $280,000 Loan Amount 30 year loan with monthly payments 4% quoted rate on the loan (annual rate) 2 points in costs to the lender $3,000 in other closing costs Loan is to be paid off at the end of the 4th year. What is the balance remaining on the loan after 4 years? What is the Lender's Yield? What is the Borrower's Cost? Fill this out: Loan Amount: Loan Term: Interest Rate: Lender's Points: Additional Closing Costs: Paid off in: NI/Y Loan Pay Off: Lender's Yield: Borrower's Cost:
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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Transcribed Image Text:Use the following information to answer the
next 3 questions.
$280,000 Loan Amount
30 year loan with monthly payments
4% quoted rate on the loan (annual
rate)
2 points in costs to the lender
$3,000 in other closing costs
Loan is to be paid off at the end of the
4th year.
What is the balance remaining on the loan
after 4 years?
What is the Lender's Yield?
What is the Borrower's Cost?
Fill this out:
Loan Amount:
Loan Term:
Interest Rate:
Lender's Points:
Additional Closing Costs:
Paid off in:
NI/Y
Loan Pay Off:
Lender's Yield:
Borrower's Cost:
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