Question
You are considering two separate investments. One has annual cash flows and yields 12% return on your investment. What would be the equivalent annual yield
You are considering two separate investments. One has annual cash flows and yields 12% return on your investment. What would be the equivalent annual yield (EAY) of a monthly investment that would accumulate the same amount of cash as the 12% annual yielding investment?
Group of answer choices
11.28%
11.39%
11.42%
11.50%
You are purchasing a property for $250,000 and can choose between two loans. One is a 90% loan for 25 years at 3.85% or the second choice is a 95% loan for 25 years at 4.25%. What is the incremental cost of borrowing the extra money?
Group of answer choices
10.46%
10.63%
10.51%
10.78%
10.78%
Flag question: Question 13
Question 131 pts
A loan was made 15 years ago for $1,200,000 at 8% for a 25 year term. Rates are currently 6%. What is the market value of the loan assuming an annual basis?
Group of answer choices
$72,856.91
$73,461.33
$74,202.84
$73,070.05
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