Question
9) A friend wants to borrow $10,000 to invest in the stock market and agrees to return $30,500 at the end of the fourth year
| 9) |
| A friend wants to borrow $10,000 to invest in the stock market and agrees to return $30,500 at the end of the fourth year from today. What is the yield to you? |
|
| a. | 25.74 % |
|
| b. | 32.15% |
|
| c. | 21.99 % |
|
| d. | 10.90 % |
|
|
|
|
| 10) |
| You bought an apartment building with $65,000 cash and a mortgage loan of $305,000. The loan was made at an interest rate of 3.95% and requires monthly payments for 20 years. What are the monthly payments? |
|
| a. | $1,510.69 |
|
| b. | $1,197.25 |
|
| c. | $255.33 |
|
| d. | $1,840.21 |
|
|
|
|
| 11) |
| You are negotiating on a home that will cost $279,000. The lender is willing to lend you 75% loan to value and the interest rate is 3.80% over 30 years amortized monthly. If your monthly payment budget is $725 and you have sufficient downpayment money, can you afford this home and related mortgage? |
|
| a. | Yes |
|
| b. | No |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12) |
| What will be your monthly mortgage payment for question #11? |
|
| a. | $975.02 |
|
| b. | $1,294.61 |
|
| c. | $418.41 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Tail Risk Hedging Creating Robust Portfolios For Volatile Markets
Authors: Vineer Bhansali
1st Edition
0071791752,0071791760
