The Bank issued a home mortgage of $100,000 at 8.5% repayable quarterly over 30 years. Today the bank received payment number 83 and, os a result, the Bank properly records the book's value equal to the outstanding balance. in order to raise cash, however, the bank intends to sell the loan so that the bank generates an actual annual rate of return of 8.70% (i.e the bank's annual rate of return on the loan investment -buying and selling the loans- in 8.7%)

15.What is the bank's profit from the sale (i.e difference between the market and book value?)

a. $49,516.00

b. $17.76918

c. $11.454.75

d. $32,555.24

e. $26,442.33

16.What was the required rate of the buying bank?

a.4.16 %

b . 1.07 %

c. 2.27 %

d . 3.64%

e . 6.25 %

17.You decide to sell the car you bought for $18,000 three years ago. Two years ago you had to fix the engine for $2,500. Last year you paid $500 to leave the car at the car dealer to sell it. Today the dealer sold the car and gave you $16.500. What was your annua! rate from this trade?

a. -6.48%

b -4.53 %

c-7.34 %

d -5.61 %

e -8.18%