What is the current rate of interest for a 30-yearmortgage? Is this a reasonable rate of return for thefinancial institutions? Are you willing and able toborrow at this rate (no need to disclose personalfinancial information, just is this attractive to you andwhy)? Are banks willing and able to make loans?Why or why not? Add the refreances or coteationwork please

As of July 2024, the average interest rate for a 30-year fixed-rate mortgage is approximately 6.77%…

Answered: What is the current rate of interest…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter7: Credit Cards And Consumer Loans

Section: Chapter Questions

Problem 2LTAI

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Which of the following statement is most correct? When solving a problem involving an annuity dueyou must select the END model on your financial calculator When using a financial calculatorcash outflows generally have to be entered as negative numbers because a financial calculator sees money leaving your hands The present value of a single future sum of money is POSITIVELY related to both the number of years until payment is received and the discount rate In the loan amortization tablethe payment is constant, the interest payment is increasing and the principals are declining.
What can you calculate with the Excel argument FV? Number of periods of time for a loan or investment. Interest rate. Future value of an investment based on a constant interest rate. The constant periodic payment required to pay off a loan or investment.
1) What is the loanable funds market? 2) Calculate the following: You save $100 and want to see how much you will earn based on the following interest rates Interest Rate Value after 1 month -1% ? 0.5% ? 1% ? 2% ? 3) What supply factors affect the Loanable Funds market? 4) What demand factors affect the Loanable Funds market?
What does the Excel argument Nper refer to? Number of periods of time for a loan or investment. The constant periodic payment required to pay off a loan or investment. Periodic interest rate. Present value of an investment.
Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.65% at a time when inflation is around 1.45%. For the average saver, the real rate of interest on his or her savings is %. (Round your response to two decimal places and use a minus sign if necessary.) If banks expect that the rate of inflation in the coming year will be 4.45% and they want a real return of 5.5% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is %. (Round your response to two decimal places. If the economy experiences an unexpectedly high rate of inflation, the group that would tend to benefit is O A. debtors (people or businesses who owe money) O B. creditors (people or institutions that are owed money) O C. both would benefit equally. O D. neither benefits.
6-1 YIELD CURVES Assume that yields on U.S. Treasury securities were as follows: Term Rate 6 months 4.69% 1 year 5.49 2 years 5.66 З years 5.71 4 years 5.89 5 years 6.05 10 years 6.12 20 years 6.64 30 years 6.76
How does compound interest make your money "work for you"? Multiple Choice O It provides an interest deduction when you pay your loan off early. You earn interest on interest in addition to interest on principal. It provides an interest deduction if you take out a loan for longer than one year. It provides higher interest rates on larger loans with longer time horizons.
The time value of money is used for many important financial decisions that could affect long-term goals. The interest rate you pay on a loan can affect the amount you pay each period. An advertised monthly lending rate of 9% is about 11% per year. This difference between an advertised rate and the annualized rate is based on finer TVM details that may be overlooked by borrowers. What practical TVM application would you expect to encounter in your future? Explain.
Describe one of the many financial applications of the time value of money e.g. capital project evaluation, annuity, regular payment for amortization of a loan, etc. Provide an example situation with dollar figures and utilizing the correct present value or future value formula for your chosen example to illustrate the time value of money concept and show your keystrokes on your financial calculator.
(Q) You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio, he determines that your maximum monthly payment can be no more than $3, 200. You would like to have a 30 year fully amortizing loan and the interest rate offered on such a loan is currently 8.5%. Given these constraints, what is the largest loan you can obtain?
2) I need help with finance homework questions asap, Multiple choice question. Which of the following is correct regarding the APR? The APR is the rate which lenders are required to disclose. The APR is greater than the effective annual rate. The APR formula for rate disclosure is [1 + (r/m)]m-1. The APR considers all the effects of compounding. The APR is best used to compare offers from various lenders.
Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.45% at a time when infialion is around 0 9% For the average saver, the real rate of interest on his or her savings is % (Round your response to two decimal places and use a minus sign if necessay.) Il banks expect that the rate of inflation in the coming year will be 3.9% and they want a real return of 8% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is %. (Round your response to two decimal places) 11 the economy experiences an unexpectedly high rate of inflation, the group that would tend to benefit is O A. creditors (people or institutions that are owed money). O B. deblors (pcople or businesses who owe moncy). OC. both would benefit cgqually O D. neilher bencfits.

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