Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You buy a property valued at $4,000,000 and finance your purchase with a 70% LTV loan. The bank offers a 20 year amortization schedule with

You buy a property valued at $4,000,000 and finance your purchase with a 70% LTV loan. The bank offers a 20 year amortization schedule with 5% interest and monthly payments and requires a balloon repayment after 5 years. This loan has a prepayment penalties of 5/4/2/2/2 points corresponding to each year of the prepayment. What will be your payment in month 30 if you decide to fully repay your loan (Hint: this includes the regular payment, the remaining balance and the prepayment penalty)? (e.g. if you get $13.57654, write 13.58)

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago