You are offered loans from two competing lenders on the purchase of a $6.5million property for a 5-year term (25-year amortization). Assume that paymentsare made ANNUALLY. The terms are outlined below:Loan 1Loan 2LTV62.5%70.0%Rate6.375%6.875%Fees (total)$55,000$77,000Calculate the incremental cost for the extra funds provided by loan 2. Hint:Remember that the loan will not be outstanding a full 25 years.ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF YOUR ANSWER

DataLoan 1Loan 2Loan-to-Value62.50%70.00%Rate6.375%6.875%Fees (Total)$55,000$77,000

You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term (25-year amortization). Assume that payments are made ANNUALLY. The terms are outlined below: Loan 1 Loan 2 LTV Rate 62.5% 70.0% 6.375% 6.875% Fees (total) $55,000 $77,000 Calculate the incremental cost for the extra funds provided by loan 2. Hint: Remember that the loan will not be outstanding a full 25 years. ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF YOUR ANSWER

You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term (25-year amortization). Assume that payments are made ANNUALLY. The terms are outlined below: Loan 1 Loan 2 LTV Rate 62.5% 70.0% 6.375% 6.875% Fees (total) $55,000 $77,000 Calculate the incremental cost for the extra funds provided by loan 2. Hint: Remember that the loan will not be outstanding a full 25 years. ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF 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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Similar questions

The purchase price of a home in a subdivision in Antipolo City is ₱4,200,000. A down payment of 20% is made and secures a loan on the remaining balance for 25 years at an annual interest rate of 5.4%. Compute for the down payment.
The payment necessary to amortize a 5.5% loan of $82,000 compounded annually, with 8 annual payments is $12,944.85. The total of the payments is $103,558.80 with a total interest payment of $21,558.80. The borrower ma larger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the paymen and (c) the amount of interest saved.
Complete an amortization schedule for the following loan. The loan amount is $100,000 at 3. 5 % interest, amortized on a yearly basis over five (5) years. (I have two calculators. A BA2Plus and a Qualifier Plus IIIfx. Please provide the proper key strokes.) Thank you!
To purchase a new equipment it is necessary to borrow $23000. The equipment dealer offers a 8-year loan at an interest rate of 4% compounded annually. If you make only one payment at the end of the loan period repaying the principal and interest what is the total amount that must be paid back? Question 4 options: $27012 $26766 $28920 $31477 $25075
Calculate the total payment for the FHA Purchase Price: $500k LTV: 96.5% Loan term and type: 30 year fixed Interest Rate: 4.25% UFMIP Factor: 1.75 MMI Factor: .75 Annual Taxes: $5700 Annual Insurance: $1100
A house costs $142,000, It is to be paid off in exactly ten years, with monthly payments of $1,779.64. What is the APR of this loan? A. 6.75% O B. 8.75% C. 7.75% O D. 9.75%
The following loan is fully amortizing. The loan is for $12,000 at 5% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.
4. PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASBancomer grants loans for the purchase of new automobiles, at 12½ % interest with monthly payments, for 4 years. It requests a minimum down payment of 10% and a maximum of 50% of the initial value of the car, excluding insurance and license plates. Considering the above, calculate the interest cost (effective rate) and the amount of the monthly payments considering the down payments from smallest to largest and varying from 10% to 10%. After a 30% down payment, the rate drops to 11.5%. The list cost of the car is $254,000.00. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
The payment necessary to amortize a 4.9% loan of $86,000 compounded annually, with 4 annual payments is $24,196.70. The total of the payments is $96,786.80 with a total interest payment of $10,786.80. The borrower made larger payments of $25,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. a. The time needed to pay off the loan with payments of $25,000.00 is _____ years. (Round up to the nearest year.) b. The total amount of the payments is $______ (Round to the nearest cent as needed.) c. The amount of interest saved is $______. (Round to the nearest cent as needed.)
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Find the payment necessary to amortize the loan.$2500; 6% compounded annually; 7 annual payments
The payment necessary to amortize a 4.5% loan of $81,000 compounded annually, with 5 annual payments is $18,451.12. The total of the payments is $92,255.60 with a total interest payment of $11,255.60. The borrower made larger payments of $19,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. Thank you~

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