Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please tell me how to provide an excel spread sheet for this problem Complete/answer each of the following problems providing an Excel spreadsheet with the

please tell me how to provide an excel spread sheet for this problem
image text in transcribed
Complete/answer each of the following problems providing an Excel spreadsheet with the solution to receive full credit. For example, create the loan amortization table for each of the problems. 1. David wants to uy a property for $200,000 and wants an 80% loan. A lender offers a 30 year fully amortizing loan at 6% interest; however, a loan fee of $3,000 will also be needed for David to obtain the loan. a. How much will the lender actually disburse? b. Wat is the APR and the EAR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If David pays off the loan after five years, what is the effective interest rate (EAR)? d. Assume that the lender imposes a prepayment penalty of 2% of the outstanding loan balance if the loan is repaid within eight years of closing. If David repays the loan after five years with the prepayment penalty, what is the effective interest rate (EAR)

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_2

Step: 3

blur-text-image_3

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

43 Ways To Finance Your Feature Film A Comprehensive Analysis Of Film Finance

Authors: John W. Cones

3rd Edition

0809326930, 978-0809326938

More Books

Students also viewed these Finance questions