On January 1, 2017, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at...

On January 1, 2017, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual rate of 7.35%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2018 (second-year interest expense on the mortgage)? Answer--$25,361.98

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7.) On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000...

7.) On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual rate of 7.35%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2016.

On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for...

On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for $500,000 at a nominal annual rate of 7.0%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2016? Select the correct answer. a. $34,835.70 b. $34,834.00 c. $34,837.40 d. $34,839.10 e. $34,840.80

You plan to get a mortgage which is an amortized loan. The mortgage is $350,000 for...

You plan to get a mortgage which is an amortized loan. The mortgage is $350,000 for 15 years with APR of 3.5% compounding monthly. How much is the interest payment of the 8th month of the 8th year? How much is the balance after 12 years?

b) Your friend who lives in England has obtained a $250,000 mortgage. The mortgage is amortized...

b) Your friend who lives in England has obtained a $250,000 mortgage. The mortgage is amortized over 25 years and the term of the mortgage is 25 years. The mortgage interest rate is 9% compounded annually. He will begin making annual payments of $25,451.56 at the end of the year. (i) What is the principal outstanding immediately after he makes his fifth payment? (ii) How much of your friend’s fifth payment is interest? (iii) How much has he paid in...

Your 30 year mortgage is $350,000 with an interest rate of 4%. Prepare the amortization schedule...

Your 30 year mortgage is $350,000 with an interest rate of 4%. Prepare the amortization schedule for repayment of the mortgage

1. a) Ali obtained a Kshs. 500,000 loan payable over 8 year period amortized at 12%...

1. a) Ali obtained a Kshs. 500,000 loan payable over 8 year period amortized at 12% interest with annual payments. Prepare a loan amortization schedule showing the loan balances at the end of the year under constant payment Amortization. b) A mortgage creates a right of security interest in the real property for the lender. What are the requirements from the lenders for valid mortgage contracts?

Prime Mortgage Company sanctions a loan application for a 30 year mortgage loan for US$100,000. The...

Prime Mortgage Company sanctions a loan application for a 30 year mortgage loan for US$100,000. The interest rate on the loan is 12% per annum and the borrower is required to make equated monthly payments to repay the loan in 30 years (360 months). If the market rate of interest goes down to 9% per annum, is the loan still worth US$100,000? Why? Why not? (5 points) b) If the corn farmer in the example above harvests 60,000 bushels, what...

Suppose that a 15-year mortgage loan for $200,000 is obtained. The mortgage is a level-payment, fixed-rate,...

Suppose that a 15-year mortgage loan for $200,000 is obtained. The mortgage is a level-payment, fixed-rate, fully amortized mortgage and the mortgage rate is 7.0% (APR, monthly). a. Find the monthly mortgage payment. b. Compute an amortization schedule for the first six months. c. What will the mortgage balance be at the end of the 15th year? d. If an investor purchased this mortgage, what will the timing of the cash flow be assuming that the borrower does not default?

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is...

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is 3% per year, Compounded annually Compounded monthly Compounded daily What are effective annual rates for 1,2, and 3 above?

You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local...

You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. (LG 7-3) a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 9 percent and zero points. Option 2: Mortgage rate of 8.85 percent and 2 points. Which option should you choose? b. Your bank offers...

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