Question
Emily has borrowed $89000 for a home loan from the Bank. The loan has a maturity of 23 years with a 4.1% nominal annual interest
Emily has borrowed $89000 for a home loan from the Bank. The loan has a maturity of 23 years with a 4.1% nominal annual interest rate, compounded monthly. How much loan origination fees should the bank charge Emily to achieve an annual effective yield of 5.1%?
You wholly own a small house whose estimated current market value is $500,000. Now you plan to sell out the small house and buy a new and larger house whose value is $750,000. You want to borrow a 29-year $320000 home loan from the bank at an annual interest rate of 5.2% with monthly payments. Suppose that the banks annual required return rate is 6.2%, what is the present value of the new mortgage loan?
You borrow a 8-year $112600 car loan with an annual interest rate of 8.3% and monthly repayments. At the end of the 56 month, you want to sell your house and pay off the car loan. How much do you need to pay to the bank after 56 months repayments?
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