You are considering borrowing $100,000 for 30 years at a compound annual interest rate of 9%. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. What is the annual payment that will fully amortize the loan? Select one: O a. $3,333.33 O b. $6,400.30 O c. $12,333.33 O d. $9,733.63 Oe. $8,423.33

You are considering borrowing $100,000 for 30 years at a compound annual interest rate of 9%. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. What is the annual payment that will fully amortize the loan? Select one: O a. $3,333.33 O b. $6,400.30 O c. $12,333.33 O d. $9,733.63 Oe. $8,423.33

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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Need Detailed answer with steps please 30. Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years, Current loan balance: $100,000; Current loan interest: 7%; Current loan mortgage payment: $898.33; Remaining term on current mortgage: 15 years; New loan interest: 5.5%; New loan mortgage payment: $817.08; New loan term: 15 years; Cost of refinancing: $5,000. Assume that the opportunity cost is the interest rate on the new loan (5.5%). A. -$5,000.00 B. -$1,155.27 C. $3,844.73 D. $8,844.73
2) A 30 year $100, 000 loan is made with effective annual interest i = 9% for the first 10 years and i = 7% for the next 20 years. The loan is paid off with constant yearly payments K beginning one year after the loan is made. Find K, and find the OB10 and OB25. Lastly, fill out the following amortization table for 3 years. Outstanding Principle Repaid Payment Interest Balance $100, 000 1 2 3.
Toyota S murang auto finance company is prepared to offer you a loan of $38,000 to buy a new Toyota Corolla. The repayments are at the end of every year for a period of 7 years. If the interest rate on the loan is 12%, perform loan amortization calculation that will allow you to determine the amount of the loan outstanding after making the second installment. PV of ordinary annuity-= C/r x [1-1(1+r)n]
If you borrow $500 for 6 months at 6% annual simple interest, how much must you repay at the end of the 6 months? PREVIOUS ANSWERS HARMATHAP 12 6.2.007. Find the future value if $7000 is invested for 5 years at 12% compounded annually. (Round your answer to the nearest cent.) Submit Answer DETAILS DETAILS HARMATHAP12 6.2.017. What is the compound interest if $43,000 is invested for 5 years at 8% compounded continuously? (Round your answer to the nearest cent.)
A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest and 1 point and the second is a 95% loan for 25 years at 9.25% interest and 1 point. Assuming the loan will be held to maturity, what is the incremental cost of borrowing the extra money? O 12.01% O 14.34% 13.50% O 13.66%
Explain
You plan to borrow $32,200 at an 8.2% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? Oa. $5,755.17 Ob. $2,346.29 $2,384.99 Od. $2,640.40 O$6,227.10
Please answer with explanation Thank you so much
The interest rate is 10%. There is a 2-year loan with two specific payments: $110 to be paid next year and $200.00 to be paid in two years. The current market value of this loan is $_______ (round to the nearest integer)
Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years; current loan balance: $400,000; current loan interest: 5.875%; remaining term on current mortgage: 15 years; new loan interest: 3.625%; new loan term: 15 years; cost of refinancing: $6,000. Assume that the opportunity cost is 10%. Should the borrower refinance
A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57 years at 12.98%, with .13 points. The loan payments will be monthly. The closing cost is estimated to be $2,168. Calculate the prepaid interest. O $169.18 O $167.72 O $196.60 O $177.71
Give typing answer with explanation and conclusion Assume you want to borrow $300,000 and have been presented with two options. The first option is a fully amortizing loan with an interest rate of 3% and $4000 of origination fees and points. The second option is an interest only loan with an interest rate of 4% and $5000 of origination fees and points. Both loans are for 30 years and have monthly payments. Further assume that if the borrower chooses the interest only loan, any money saved on the monthly payment can be invested with a projected return of 7%. Also assume that the proceeds from the investment will first be used to pay off any remaining balance on the loan. How much money will the investor have left at the end of 30 years after repaying the loan? Group of answer choices None, the investor will owe $12,373.42 $323,060.72 $22,063.08 $30,750.78

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