original mortgage balance and the loan interest rate for a customer. You know that the mortgage was a regular 30-year period amortizing loan (payments at the end of each period). You also know that the principal repaid in period 5 was $1501.20 and the principal repaid in period 6 was $1621.30. Your manager fears the situation is hopeless! You tell him not to worry and surprise him with the answer to the original loan balance. What is your answer?

original mortgage balance and the loan interest rate for a customer. You know that the mortgage was a regular 30-year period amortizing loan (payments at the end of each period). You also know that the principal repaid in period 5 was $1501.20 and the principal repaid in period 6 was $1621.30. Your manager fears the situation is hopeless! You tell him not to worry and surprise him with the answer to the original loan balance. What is your answer?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Find the present value of the following annuities. Assume the discounting occurs once a year A. The customer agreed to pay rent at the end of each year and the landlord charges $21,600 per year . The required rate of return of the landlord is 6.85%. The rent contract will last for 7 years Required: Find the present value of this agreement for the landlord B. A customer approached a car sales agent and makes a car lease agreement for 6 years. The cash flow [annual] is $6000. The agent charges 7.2% interest on such contract Required: How much will be the present value of such an agreement ?
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You have just purchased a new warehouse. To finance the purchase, you' ve arranged for a 35-year mortgage for 85 percent of the $3,100,000 purchase price. The monthly payment on this loan will be $17,200. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g ., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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