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You have $400,000 to invest in a residential property worth $3,000,000 in Mong Kok and you are choosing between the following fully amortizing monthly
You have $400,000 to invest in a residential property worth $3,000,000 in Mong Kok and you are choosing between the following fully amortizing monthly mortgages. (i) a $2,600,000 loan at 6% for 10 years and (ii) a $1,000,000 loan at 5% for 10 years and a second mortgage for $1,600,000 at 6.5% for 10 years. Which alternative would you choose and why? (10 marks)
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Part i Loan Amount 2600000 Period n 10 years12 120 months Rate r 6 pa or 05 per month Now to find mo...
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Probability And Statistics
Authors: Morris H. DeGroot, Mark J. Schervish
4th Edition
9579701075, 321500466, 978-0176861117, 176861114, 978-0134995472, 978-0321500465
