Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i) If you repay this loan after 6 years, what is the effective borrower (expressed as an APR)? i) What is the EBC expressed as

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
i) If you repay this loan after 6 years, what is the effective borrower (expressed as an APR)? i) What is the EBC expressed as an EAR? #3. To buy your dream home you use a 4/16 reset loan that pays interest only (bullet loan) for the first 4 years, followed with a reset payment to amortize over the remaining 16 years. The loan amount is $180,000 at 5.5%, with 2 discount points (to the lender) and $875 in third party closing costs which the borrower must pay. c loc PMT(PV=-120000, N = 4, VYR S-9,FV=180,00 the first 4 years, followed with a reset payment to amortize over the remaining 16 years. The To buy your dream home you use a 4/16 reset loan that pays interest only (bullet toan) for loan amount is $180,000 at 5.5% with 2 discount points (to the lender) and $87s in third Party closing costs which the borrower must pay. a) What net amount does the londer disburse? 180,000 x 0.98=176,400 b) What not amount do you as a borrower receive? 176400-875175,525 c) What is your monthly payment during the first 4 years?' -825.00 d) What is your monthly payment during the remaining 16 years? PMT (N=192, PV=-180,000, INRESS ,F0-0) = 11471-75 e) What is the FTLAPR on this loan? IRR/YR-5-75% Signature: Name (printed): er PV What is your balance 8 years after you take out the loan PMT (N=192, IAR -5.5, PV=-180,000, Freo) 21,411.75 Input 24 amont Bar = 165, 150 le 9) If you repay this loan after 6 years, what is the yield (expressed as an APR) for the lender? IRR/YR = 5.9 h) What is the yield expressed as an EAR? IRR/UR=6.00 1) If you repay this loan after 6 years, what is the effective borrower cost (EBC) to you (expressed as an APR)? j) What is the EBC expressed as an EAR? Signature: Name (printed)

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

Step: 3

blur-text-image

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

International Financial Management

Authors: Jeff Madura

11th Edition

0538482966, 9780538482967

More Books

Students also viewed these Finance questions

Question

=+ Is the information documented and verifiable?

Answered: 1 week ago

Question

=+ Is the information presented in an objective manner?

Answered: 1 week ago