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Fingers Crossed Capital has arranged a variable rate loan from Stingy Bank. The loan amount is $1,000,000, due in 5 years, and payments based on
- Fingers Crossed Capital has arranged a variable rate loan from Stingy Bank. The loan amount is $1,000,000, due in 5 years, and payments based on a 25-year amortization?The interest rate will be set at 200 basis points over the WSJ Prime Rate.
- Assume the WSJ Prime rate is 4% in year 1 and 5% in year 2:
- 1) What will the payment be in year 1?
- 2) What will the loan balance be at the end of year 1?
- 3) What will be the payment in year 2?
- 4) What will the loan balance be at the end of year 2?
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Answer 1 The payment in year 1 is calculated using the loan amount the interest r...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
