A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date February 9th. Five percent interest rate. Prepaid interest due at closing. $160,000 mortgage loan amount. $2,400 loan discount points to be paid by the buyer or borrower to the lender. 25-year term, monthly payments, fully amortizing. Required: Calculate the APR for federal truth-in-lending purposes. Note: (Do not round intermediate calculations. Round your final answer to two decimal places.) APR %
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- A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date February 9th. Five percent interest rate. Prepaid interest due at closing. $170,000 mortgage loan amount. $2,500 loan discount points to be paid by the buyer or borrower to the lender. 25-year term, monthly payments, fully amortizing. Required: Calculate the APR for federal truth-in-lending purposes. Note: (Do not round intermediate calculations. Round your final answer to two decimal places.) APR %A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date February 9th. Five percent interest rate. Prepaid interest due at closing. $130,000 mortgage loan amount. $2,100 loan discount points to be paid by the buyer or borrower to the lender. 25-year term, monthly payments, fully amortizing. Required: Calculate the APR for federal truth-in-lending purposes.A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date February 9th. Five percent interest rate. Prepaid interest due at closing. $105,000 mortgage loan amount. $1,850 loan discount points to be paid by the buyer or borrower to the lender. 25-year term, monthly payments, fully amortizing. Required: Calculate the APR for federal truth-in-lending purposes. (Do not round intermediate calculations. Round your final answer to the nearest one-quarter of a percent.) Important Note from Your Instructor: Do NOT round your final answer to the nearest one-quarter of a percent. This issue has been reported to MH, but it may not be in effect by the start of the term.
- A loan with the following terms is being made:Fixed-rate, constant monthly payment. Closing date February 9th. 9% interest rate. Prepaid interest is due at closing. $70,000 mortgage loan amount. $1,500 loan discount points to be paid by the buyer/borrower to the lender. The 25-year term, monthly payments, fully amortizing.a. Calculate the APR for federal truth-in-lending purposes.b. Do you think that the APR calculated in (a) reflects the likely return that the lender willreceive over the term of the loan? List specific reasons that the lender’s actual return mightbe different from the APRCalculate the effective rate under the following terms, All fees and conditions that are listed should be incorporated into the calculation. Loans are amortized for the full number of contract years but may be refinanced at an earlier date if stated. This loan is for $200,000 30 years, 10%, 2% closing fees 10.72% none of these 10.24% 11.06%A company decides to obtain a small-business loan of $237,000. The financial institution from which the company borrows offers two options: a. Borrow $237,000 at 6% with monthly payments of $4,581.87 over 5 years. b. Borrow $237,000 at 7% with monthly payments of $2,751.77 over 10 years. Required: Record the issuance of an installment note payable under each option. Record the payments for the first and second month under each option. Determine the total amount of interest paid under each option over the full period of the note.
- Awesome Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024. Principal amount 4,000,000 Direct origination cost 61,500 Origination fee received from the borrower 350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. Required: 1. Compute the carrying amount of the loan receivable on January 1, 2020. 2. Prepare a table of amortization for the loan receivable. 3. Prepare the journal entries for 2020 and 2021.A fully amortizing CAM loan is made for $132,000 at 6 percent interest for 20 years. Required: a. What will be the payments and balances for the first six months? b. What would payments be for a CPM loan? c. If both loans were repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the payments and balances for the first six months? (Round your intermediate calculations and final answers to the 2 decimal places.) Month 1 Month 2 Month 3 Total Payment End BalanceWhat is the carrying amount of the loan receivable on January 1, 2021? Appari Bank granted a loan to a borrower on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Principal amount Origination fee received from borrower Direct origination cost incurred 4,000,000 350,000 61,500 The effective rate on the loan after considering the direct origination cost incurred and origination fe received is 12%. a. 4,000,000 O b. 4,650,000 O c. 4,411,500 O d. 3,711,500
- Determine the equal, annual, end of year payment required for each year over the life of the loan shown in the following table to repay it fully during teh stated term of the loan. Principal: $43,000 Interest Rate: 7% Term of Loan (years): 21 The amount of the equal, annual, end of year payment, CF is?Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Amount Financed: $9000 Regular Monthly Payment. $189 02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 12th paymentConstruct an amortization schedule for a $1,000, 3.9% annual rate loan with 3 equal payments. The first payment will be made at the end of the 1st year. Find the required annual payments Selected Answer: $356.9 Answers: $356.9 $359.7 $367.2 $370.5 what’s the ending balance of the amortized loan at the end of the first year? Selected Answer: $678.1 Answers: $650.2 $669.1 $678.1 $679.3