Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 14, 2024

You buy a house for $110,000. Assume the 70% loan, a 30 year amortization, two points upfront and a 5% prepayment penalty. You pay the

You buy a house for $110,000. Assume the 70% loan, a 30 year amortization, two points upfront and a 5% prepayment penalty. You pay the loan off after five years

1) What is balance at the end of your five?

2) what is the dollar amount of the pre-payment penalty?

3) what is the effective rate if the loan was paid off in year five?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 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

International Business Competing In The Global Marketplace

Authors: Charles Hill

14th Edition

1260387542, 9781260387544

More Books

Students also viewed these Finance questions

Question

★★★★★

Mexico was famous - or infamous - for many years in having two things every six years (cada seis aos in Spanish): a presidential election and a currency devaluation. This was the case in 1976, 1982,...

Answered: 1 week ago

Question

★★★★★

For the Goliath Tool Company in Example 3.4, if the design tolerances are 0.07 cm, is the process capable of meeting tolerances of 0.08 cm for the slip-ring bearings?

Answered: 1 week ago

Question

★★★★★

2.8 Tuna Fish A quick survey gives the price-an estimated average for a 170-gram can-for 14 different brands of water-packed light tuna, based on prices paid nationally in supermarkets: a. Find the...

Answered: 1 week ago

Question

★★★★★

Candlewood LLC started business on September 1, 2016 and adopted a calendar year. During 2016, Candlewood incurred $6,500 in legal fees for drafting the LLC's operating agreement and $3,000 in...

Answered: 1 week ago

Question

★★★★★

Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, ended December 31, 20Y7, are as follows Consumer and Commercial, and two corporate service...

Answered: 1 week ago

Question

★★★★★

Jamie sells investment real estate for $80,000, resulting in a $15,000 loss. Jamie's loss is an ordinary loss a capital loss a Sec. 1231 loss a Sec. 1244 loss

Answered: 1 week ago

Question

★★★★★

Endogenous Growth Model (20 points) Consider an economy with a total population of 100. Each individual in this economy accumulates human capital. Each period, a person has one unit of time to split...

Answered: 1 week ago

Question

★★★★★

Towards the end of the course, we discussed some of the details underlying Classical and Keynesian economics, a seemingly endless debate within the economics profession. In this, we are focusing on...

Answered: 1 week ago

Question

★★★★★

1. An individual has $4,000 to invest and three opportunities are available to him. Each opportunity requires deposits in $1,000 amounts; the investor may allocate a;; the money to just one...

Answered: 1 week ago

Question

★★★★★

The Loquat Corporation has book net income of $170,200 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of...

Answered: 1 week ago

Question

★★★★★

Use the balance sheet and income statement below. VALIUM'S MEDICAL SUPPLY CORPORATION Balance Sheet as of December 31, 2024 and 2023 (in millions of dollars). Current assets: Assets Cash and...

Answered: 1 week ago

Question

★★★★★

2. What do you think of how Hautelook handled its attendance problem? Was this an appraisal or a discipline problem? What difference would it make in how you handle the problem?

Answered: 1 week ago

Question

★★★★★

5. How does the California Health Foundation handle employees who may be candidates for future promotion?

Answered: 1 week ago

Question

★★★★★

2. What do you think of the idea of getting anonymous thirdparty feedback on the employee? Why?

Answered: 1 week ago

Previous Question Next Question