Question
In: Accounting
Refinance decision: The original loan is for $150,000 with terms 6%, 30 years payable monthly. The...
Refinance decision: The original loan is for $150,000 with terms
6%, 30 years payable monthly. The elapsed time on the original loan
is 5 years. The new loan rate is 3.6% which will be held 7 years.
The cost of refinancing is $3,000. The opportunity cost is
9%.
A. Prepare a table that calculates the change in monthly payment
and change in Loan Balance numbers:
B. Do the Present Value Analysis:
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The loan is for $150,000 with a rate of 6% for 30 years payable monthly. Calculate...
The loan is for $150,000 with a rate of 6% for 30 years payable
monthly.
Calculate the Monthly Payment (MP):
Do a monthly Amortization Table for 4 months using the MP:
Calculate the Loan Balance (LB) using the formula approach at
the end of 4 months.
The holding period when needed is 12 years, Loan is $150,000 with terms 6%, 30 payable...
The holding period when needed is 12 years, Loan is
$150,000 with terms 6%, 30 payable monthly
Calculate the effective-interest cost or yield after 12 years
have lapsed:
Now, assume a prepayment penalty of $600 when calculating the
effective-interest cost to the borrower after 12 years have lapsed.
Effective-Interest Cost or Internal Rate of Return for the
lender:
The loan is for $150,000 with terms 6%, 30 years. The graduation rate is 7.5% and...
The loan is for $150,000 with terms 6%, 30 years. The graduation
rate is 7.5% and occurs 3 times.
Calculate the Monthly Payments and Loan Balances for years 1-4
by designing an Amortization Table:
4. Calculate the new monthly payment given a $150,000 loan for 6%, 30 years (monthly)...
4. Calculate the new
monthly payment given a $150,000 loan for 6%, 30 years (monthly)
with a lump-sum pay down of $20,000 made after 12 years have
lapsed.
New MP:
Calculate the upfront fees that needs to be charged by the
lender given a loan for $150,000 with terms 6%, 30 years (monthly
compounding). The lender wants to earn a 6.6% yield. Assume a
holding period of 12 years.
Calculate the total payments and total interest expense for a...
You obtain a loan of $150,000 at 5.875% amortized over 30 years with monthly payments. You...
You obtain a loan of $150,000 at 5.875% amortized over 30 years
with monthly payments. You are required to pay closing costs and
fees of 2% of the loan amount to the lender. What is the yield of
the loan if paid off at the end of 5 years?
$300,000 loan 6% per year APR 30 year armotization Payable monthly Paid exactly 5 years What...
$300,000 loan
6% per year APR
30 year armotization
Payable monthly
Paid exactly 5 years
What is the loan balance?
Please show standard factor notation.
Answer should be: $279,163.07
The Sandersons are planning to refinance their home. The outstanding principal on their original loan is...
The Sandersons are planning to refinance their home. The
outstanding principal on their original loan is $120,000 and was to
amortized in 240 equal monthly installments at an interest rate of
10%/year compounded monthly. The new loan they expect to secure is
to be amortized over the same period at an interest rate of 7%/year
compounded monthly. How much less can they expect to pay over the
life of the loan in interest payments by refinancing the loan at
this...
The Sandersons are planning to refinance their home. The outstanding principal on their original loan is...
The Sandersons are planning to refinance their home. The
outstanding principal on their original loan is $100,000 and was to
amortized in 240 equal monthly installments at an interest rate of
11%/year compounded monthly. The new loan they expect to secure is
to be amortized over the same period at an interest rate of 8%/year
compounded monthly. How much less can they expect to pay over the
life of the loan in interest payments by refinancing the loan at
this...
For a 30-year loan with a face value of $150,000, 5 percent annual interest, and monthly...
For a 30-year loan with a face value of $150,000, 5 percent
annual interest, and monthly payments, find the monthly
payment and remaining mortgage balance at the end of
years 5, 20, and 30
You obtain a loan of $150,000 at 5.875% amortized over thirty years with monthly payments.
You obtain a loan of $150,000 at 5.875% amortized over thirty years with monthly payments. You are required to pay closing costs and fees of 2.0% of the loan amount to the lender. What is the yield of the loan if paid off at the end of 5 years?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain the similarities and differences between spiders, crawlers and bots in relation to search engines. Additionally...
- ] How much weight do you have to invest in KLM in order to earn the...
- Cpp challenge Description The purpose of this challenge is to use the WHILE loop to control...
- Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
- Forecasting Illustrate your work to show how the answers were obtained. Round to two decimal places....
- In C++ Prompt user to enter two integers •Determine whether the first number is divisible by...
- Green and Silver Company Trial Balance For the Year Ended May 31, 2019 Debits Credits Cash...
ADVERTISEMENT