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

Question

1 Approved Answer

can someone please explain #9? what is the answer Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of

image text in transcribed
can someone please explain #9? what is the answer
Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments. After 5 years of payments, Ann can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 6% compounded monthly, with monthly payments. Refinancing will cost Ann 1 point and $1, 500 in closing costs. If Ann refinances into this loan and makes payments for 25 years, what will be her annualized IRR from refinancing

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

The International Handbook Of Shipping Finance

The International Handbook Of Shipping Finance

Authors: Manolis G. Kavussanos, Ilias D. Visvikis

1st Edition

113746545X, 978-1137465450

More Books

Students also viewed these Finance questions

Question

★★★★★
True or false;. Every planar quadratic form q(x, y) = ax2 + 2bxy + cy2 can be written as a sum of squares.

Answered: 1 week ago

Question

★★★★★
4.32 A centrifugal pump is tested in the laboratory. The pump has a 6-in. impeller and is operating at 3500 rpm. With water as the fluid, test results indicate that the pump delivers 280 gpm at 110...

Answered: 1 week ago

Question

★★★★★
It can limit childrens access to developmentally appropriate social experiences, such as birthday parties, sleepovers, and sports.

Answered: 1 week ago

Question

★★★★★
Pip Squeaks Inc. is a manufacturer of furnishings for infants and children. The company uses a job order cost system. Pip Squeaks Work in Process Inventory on April 30, 2010, consisted of the...

Answered: 1 week ago

Question

★★★★★
TB Problem Qu. 11-171 (Algo) Brissett Corporation makes three products... Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data...

Answered: 1 week ago

Question

★★★★★
960snapshot 18139258ed835009& DTAP Seard Check My Wor eBook Corporate Tax Liability The Talley Corporation had taxable operating income of $485,000 (i.e., earnings from operating revenues minus all...

Answered: 1 week ago

Question

★★★★★
Find the average value and estimate the uncertainty of these three measurements of length: 3.4 cm, 3.0 cm, and 3.5 cm. The average value is ____ and the uncertainty is ____. Question 13 options: A)...

Answered: 1 week ago

Question

★★★★★
A shipment of cereal boxes is delivered to a supermarket in Florida. The manager is told that the weights of the cereal boxes are normally distributed, with a mean of 165g and a standard deviation of...

Answered: 1 week ago

Question

★★★★★
A 4 kg block is sliding at a constant velocity of 1.5 m/s on a table, due to the pull of a hanging 0.5 kg mass as shown to the right. What is the consistent force of friction (Ff) acting between the...

Answered: 1 week ago

Question

★★★★★
. A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; and capacity per...

Answered: 1 week ago

Question

★★★★★
45. Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor...

Answered: 1 week ago

Question

★★★★★
7-14 What kind of technology does your school or university library use? Does IT play a crucial role in managing operations? RFID (Radio-frequency Identification) can play a key role in library...

Answered: 1 week ago

Question

★★★★★
7-15 How is RFID technology helping the Allianze University College of Medical Sciences library to detect and prevent the theft of books? RFID (Radio-frequency Identification) can play a key role in...

Answered: 1 week ago

Question

★★★★★
7-11 This project will help develop your Internet skills in using Web search engines for business research. Use Google and Bing to obtain information about the Internet of Things. If you wish, try...

Answered: 1 week ago

Previous Question Next Question