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how much money will the investor have left at the end of 30 years after repaying the loan? Using a financial calculator, not excel please.
how much money will the investor have left at the end of 30 years after repaying the loan? Using a financial calculator, not excel please.
18. Assume you want to borrow $300,000 and have been presented with two options. The first option is a fully amortizing loan with an interest rate of 3% and $4000 of origination fees and points. The second option is an interest only loan with an interest rate of 4% and $5000 of origination fees and points. Both loans are for 30 years and have monthly payments. Further assume that if the borrower chooses the interest only loan, any money saved on the monthly payment can be invested with a projected return of 7%. Also assume that the proceeds from the investment will first be used to pay off any remaining balance on the loan. How much money will the investor have left at the end of 30 years after repaying the loan? a. $30,750.78 sb. $22,063.08 ? c. $233,787.47 d. None, the investor will owe $12,373.42Step by Step Solution
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