you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at 3.5% per annum. suppose that before you can make any payments you receive a pay raise so you can pay an extra 200 per month with your normal payment. how many payments are required to fully amortize the loan assuming the extra 200 is paid each month?

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Q: (Interest Rate risk) Bond S has 4 years to maturity. Bond T has 30 years to maturity. Both have 9%…

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Q: A project has the following cash flows: 0 1 2 3 -$400 $208 -$X $220 $360 $415 This project requires…

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Q: gamble that pays either $0 or $100,000 each with a 50% chance? What does your answer imply about…

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Q: Based on the following cash flow graphs, determine whether each of the companies shown would be…

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Q: You are considering three stocks—A, B, and C—for possible inclusion in your investment portfolio.…

A: Here,Beta of Stock A is 0.80Beta of Stock B is 1.40Beta of Stock C is -0.30

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A: Last dividend = d0 = $4Growth rate = g = 5%Rate of return = r = 12%

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A:

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A: Profitability index of a project is calculated as shown below.

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.