you have a 5-year, interest-ony loan at 5 percent interest. The firm originally borrowed $100,000. How much will the firm pay in total interest over the life of the loan?
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you have a 5-year, interest-ony loan at 5 percent interest. The firm originally borrowed $100,000. How much will the firm pay in total interest over the life of the loan?
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- Schlitz Inc. has obtained a 90-day bank loan of $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year. a. How much dollar interest will the firm pay on the 90-day loan? : b. Find the 90-day interest rate on the loanSuppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the borrower to pay the interest on the loan balance each year and to reduce the loan balance each year by GHC 1000, what would the loan repayment schedule look like?A firm borrows $2,000,000 at 12% annual interest and wishes to pay it back with payments that increase by $50,000 per year over the 10-year life of the loan. How much would their first payment be?
- A borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. Fifteen years later, an investor wants to purchase the loan from the lender. If market interest rates are 5%, what would the investor be willing to pay for the loan? (Correct Anwser: C) A:$75,000 B:$111,028 C:$118,478 D:$168,646 How to solve this problem? Give typing answer with explanation and conclusionA borrower is purchasing a property for $200,000 and can choose between two possible loan alternatives. Loan A is a 90% loan for 25 years at 8% interest and 2 points and Loan B is a 95% loan for 25 years at 8.75% interest and 1 point. Assume the loans will be held to maturity, what is the incremental cost of borrowing the extra money? Assume that the loans will be repaid in 5 years. What is the incremental cost of borrowing the extra money? Rework parts (a) and (b) assuming the lender is charging 3 points on Loan A and 2 point on Loan B. What is the incremental cost of borrowing?A borrower has secured a 30 year, $730,000 loan at 5%. 15 years later, the borrower has the opportunity to refinance with a fifteen year mortgage at 3%. However, the up front fees to refinance, which will be paid in cash, are 5 points.. What is balance of the mortgage after 15 years? What is the amount of the fees? Should the borrower refinance if the borrower expects to remain in the home for the next fifteen years? Should the borrower refinance if she plans to relocate after seven years?
- ← You have just negotiated a home mortgage with a principal of $350,000. The bank's quoted rate is 6.3%. You chose a 20-year amortization and you decide to make 12 payments per year. Each mortgage payment is $2,551.90. How much interest do you pay in the first year? Express your answer as a percentage of the total value of your mortgage payments in the first year. The interest as a percentage of the total payments in year 1 is %. (Round to four decimal places as needed.)You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan at 4.75% interest for the rest. After 7 years, you decide to pay off the entire loan. a) What is the amount of the payment? b) What is the outstanding principal after 7 years? c) If the bank charges 3.5 points on the loan, what is the amount charged for points? $ d) If the bank charges 3.5 points on the loan, what is the true interest rate?Suppose you borrowed P1,800,000 from BDO to finance your farm lot and paid 15% for the mortgage. How much is your monthly amortization if the interest rate of your loan is 12% and will be paid for 15 years?
- 4. You loan from a loan firm an amount of $100,000 with a simple interest rate of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of 1 year, you have to pay the full amount of $100,000, What is the actual rate of interest?You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year loan at 4.5% interest for the rest. After 14 years, you decide to pay off the entire loan.a) What is the amount of the payment? b) What is the outstanding principal after 14 years?c) If the bank charges 3.5 points on the loan, what is the amount charged for points?d) If the bank charges 3.5 points on the loan, what is the true interest rate?1. Johnson Company just acquire a building for $200,000 through financing from Bank of America at a 5% annual interest rate, with 20 years to maturity of the loan. What would be Johnson Company's monthly mortgage payment? (Round your answer to the nearest whole dollar.)