Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000. Mortgage A has a 7.05% interest rate and requires Ann to pay 1.5 points upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann's annualized IRR from mortgage A?

Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000. Mortgage A has a 7.05% interest rate and requires Ann to pay 1.5 points upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann's annualized IRR from mortgage A?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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