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Your business is looking to buy building. The bank approved your application for a 15 year mortgage loan at a rate of 4.25% as your
Your business is looking to buy building. The bank approved your application for a 15 year mortgage loan at a rate of 4.25% as your mortgage payments equal 34% of your gross quarterly incomeYou need to have a 25 % down payment towards the purchase the building Your company's annual income is \$5,000,000
Based upon the information given
a)What will be the amount of payments for the loan?
b) what is the amount of the mortgage loan that the bank will approve based of on your payments?
c)what is the amount of the building that you can afford?
d)how much will the down payment be ?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
