Question
Q1) Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $47,903 with an annual interest
Q1) Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $47,903 with an annual interest rate of 14.00%. The loan will be repaid over 31 years with monthly payments.
a) What is the Loan Payment?
b) What portion of this payment is Interest?
c) What portion of this payment is Principal?
d) What is the Loan balance after first monthly payment?
Q2) What is the most you would be willing to pay for a investment that will pay you $306 in one year, $269, in two years, and $514 in three years, if your required rate of return for this type of investment is 10.00% ?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
