18. How long will it take you to breakeven assuming you take the refinanced loan scenario below? Current loan closing costs: 2 points New loan type: 15-year fixed rate Current loan original balance: $350,000 New loan interest: 5.00% Current loan balance: $263,993.63 New loan total fees: 2.5 points Current loan interest rate: 7.5% Individual discount rate: 6% Current loan payment: $2,447.25 28 months None of these are valid answers 30 months 29 months 31 months Income Tax Rate: 10%

You are considering the following fixed interest rate mortgage loan alternatives: Alternative 1: $180,000 initial loan balance 4.00% annual nominal interest rate 30-year amortization schedule $859.35 monthly loan payment Alternative 2: $195,000 initial loan balance 4.25% annual nominal interest rate 30-year amortization schedule $959.28 What is incremental cost of borrowing the additional $15,000?     (A) 0.58% --- Wrong (B) 4.25% (C) 5.8% --- Wrong (D) 7.01%

Loan 1: $200,000 at 4.5% for 30 years, monthly payments, and no origination cost. APR = 4.80% Loan 2: $200,000 at 4.25% for 30 years, monthly payments, and no origination cost. What is the discount point charged on Loan 1 assuming there is no cost associated with the origination? How many points must be charged on the 2nd loan to equalize the APR on the two loans? Please show how to solve using an excel spreadsheet

Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below.  Purchase Price    Down Payment   Add-On Interest Rate  Number of Payments $4280                      $350                           2.8%                       12 The APR for the loan amount is?

4. Calculate the effective annual rate of a loan that charges 1.2% per month. Select one: A. 15.4% B. 14.4% C. 16.4% D. 15.0%

Given the following loan information: Annual loan payment = $47,100 Number of remaining periods = 6 Interest rate = 12% What is the book value of the loan?

Problem D: Effective cost of Short‐term Loan:ABC would need cash of P5,000,000. Several banks offered different loan conditions. One of the loans has a term of 6 months,interest of 5%, and compensating balance of P50,000Required:1. How much should the face value of the loan be?2. How much is the simple effective annual interest?Problem E: Effective cost of Short‐term Loan: ABC will be acquiring a P4,000,000 loan from XYZ Bank. 13. The detail are 6‐month term, 3% interest, P40,000 bank chargeand P50,000 compensating balance.Required:1. How much is the compound effective annual interest?

You have taken out a $7.500,000 loan with a 4% interest rate, 30 year amortization and ten year term. What is the loan balance after the final loan payment? a. 50 b. $7.390,303 c Cannot determine with information provided d. $5,908,797

The following instaliment loan is being paid off early. Calculate the rebate fraction, the finance charge rebate, and the loan payoff for the loan, rounding dollars to the nearest cent: Total Number of Finance Amount Number of Monthly Payments Rebate Charge Loan Financed Рауments Рауment Remaining Fraction Rebate Payoff $2,000 36 $75.50 15

Problem:  Please answer the following questions regarding a $300,000 Mortgage Loan with monthly amortization over 30 years and an annual interest rate of 6%.    What is the loan payment for a (30 year loan (360 monthly payments) of $300,000 at 6%?   Question Answer What is the monthly payment amount? Loan Monthly Payment: How much interest and how much is principle on the first payment? Interest: Principle: How much interest and how much is principle on the second payment? Interest: Principle: If after the second payment an addition $10,000 was paid on principle.  How much would the interest be on the third payment? Interest: