FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18.You borrowed $355,000 to purchase a house.The fixed rate mortgage has a term of 15 years and requires monthly payments.The rate on the loan is

18.You borrowed $355,000 to purchase a house.The fixed rate mortgage has a term of 15 years and requires monthly payments.The rate on the loan is 7%.The loan features a prepayment penalty set at 2%of the outstanding balance at the time of prepayment.What is the dollar amount of the prepayment penalty if the loan is repaid after 55 payments?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

13th Edition

1337395080, 9781337395083

More Books

Students also viewed these Finance questions

Question

★★★★★
Seabrook and Clauss is an architectural firm that is contemplating the installation of activity-based costing. The following activities are performed daily by staff architects. Classify these...

Answered: 1 week ago

Question

★★★★★
Identify two substantive analytical procedures that can be used to audit prepaid insurance.

Answered: 1 week ago

Question

★★★★★
The lifetime, X (in days), of a sea microorganism has density function f (x) = cx2e4x, x 0, for a suitable constant c. (i) Obtain the value of c. (ii) Find the distribution function of X and hence...

Answered: 1 week ago

Question

★★★★★
Required a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions: (1) Acquired cash from the issue of common stock. (2) Provided...

Answered: 1 week ago

Question

★★★★★
Mi sobrino prometi pagar un prstamo haciendo pagos de $1,200.00 en abril de cada uno de los prximos 5 aos. Usando la tabla de valor presente que se encuentra en el Apndice 13-A en la pgina 141, y...

Answered: 1 week ago

Question

★★★★★
Mr. Pitkin bought a farm and promised to pay $6850 in 7 years with 8% simple interest and $11575 in 15 years with 10.75% simple interest. Later, Mr. Pitkin met with the lender requesting to pay $6900...

Answered: 1 week ago

Question

★★★★★
In the document the Irish Building Regulations TGD Part L What limitations does the document have

Answered: 1 week ago

Question

★★★★★
don't copy paste previous answers i am already report that answers Noah and Kelly know that small businesses need to have a presence on the web to attract customers. However, they are not sure how...

Answered: 1 week ago

Question

★★★★★
1. (20 points) Consider the dataset given in the table below. The data corre- sponds to US national unemployment rates for males (y;) and females (x). Males Females 2.9 4 7.7 7.4 4.9 5 7.9 7.2 9.8...

Answered: 1 week ago

Question

★★★★★
BiggerBetter Widgets Co. makes World-Class Widgets using a relatively simple process (see flow chart below) with the following parameters. Their factory works from 9 AM to 5 PM; all operations shut...

Answered: 1 week ago

Question

★★★★★
You invest $138 today. After 11 years will you have $229. What simple interest rate did you earn on your investment? Answer as a decimal. Round to the nearest ten thousandth.

Answered: 1 week ago

Question

★★★★★
Read the sections on expectancy, equity and goal- setting theories of motivation: 1 Which theory, or combination of theories, is most helpful in explaining your reaction to the rewards your...

Answered: 1 week ago

Question

★★★★★
1 W hat are the different reasons that companies might have for initiating training? McDonalds, the fast food chain, employs around 67,000 people in the UK. Although some argue there is a negative...

Answered: 1 week ago

Question

★★★★★
1 What theories are implicit in these reward systems?

Answered: 1 week ago

Previous Question Next Question