. Estimate the duration of Loan MBank Balance SheetCash = $ 50Loan M (7%, 6 years) = $200Deposit N (3 years, 2%) = $ 200Equity = $ 50Total Assets = $250Total Liabilities = $ 250 a. 3.1 years b. 4.1 years c. 5.1 years d. 6.1 years
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
. Estimate the duration of Loan M
Bank Balance Sheet
Cash = $ 50
Loan M (7%, 6 years) = $200
Deposit N (3 years, 2%) = $ 200
Equity = $ 50
Total Assets = $250
Total Liabilities = $ 250
a. 3.1 years
b. 4.1 years
c. 5.1 years
d. 6.1 years
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