Question
A. Solve for the ideal interest rate given the following information : Term : 10 years Loan amount : $ 1,000,000 Annual Debt Service :
A. Solve for the ideal interest rate given the following information :
Term : 10 years
Loan amount : $ 1,000,000
Annual Debt Service : $ 200,000
B.What is the maximum amount of money that can be borrowed given the following terms ?
Term : 10 years
Annual Debt Service : $ 150,000
Interest rate : 10%
C. What is the ideal amortization rate for the following loan ?
Loan amount : $500,000
Interest rate : 5%
Annual debt service : $115,487
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Cases In Financial Management
Authors: I.M. Pandey
3rd Edition
0071333428, 978-0071333429
