Question
In: Finance
As a lender you have the option to give out two loans. Loan 1: $300,000 with...
As a lender you have the option to give out two loans. Loan 1: $300,000 with administrative costs of $3,000. Loan 2: $900,000 with administrative costs of $6,000. Which loan is more profitable for the lender and why?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
1. Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender...
1. Suppose that you are considering a
conventional, fixed-rate 15-year mortgage loan for $300,000. The
lender quotes an APR of 4%, compounded monthly; mortgage payments
would be monthly, beginning one month after the closing on your
home purchase. In the tenth year of your mortgage (months 109
through 120), what would be the total dollar amount of the interest
paid?
Do not round at intermediate steps in your calculation.
2. Suppose that you take out a mortgage loan
with the...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $329 per month,
starting next month for 28 more months. Your student loan is
requires that you pay $145 per month, starting next month for the
next 119 months.
A debt consolidation company gives you the following offer: It
will pay off the balances of
your two loans today and then charge you $487 per month for the
next 41...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $325 per month,
starting next month for 26 more months. Your student loan is
requires that you pay $87 per month, starting next month for the
next 38 months.
A debt consolidation company gives you the following offer: It
will pay off the balances of
your two loans today and then charge you $501 per month for the
next 45...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $413 per month,
starting next month for 28 more months. Your student loan is
requires that you pay $89 per month, starting next month for the
next 75 months. A debt consolidation company gives you the
following offer: It will pay off the balances of your two loans
today and then charge you $508 per month for the next 37...
You currently have two loans outstanding: a car loan and a student loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $313 per month,
starting next month for 35 more months. Your student loan is
requires that you pay $133 per month, starting next month for the
next 115 months.
A debt consolidation company gives you the following offer: It
will pay off the balances of
your two loans today and then charge you $451 per month for the
next 45...
You currently have two loans outstanding: a car loan and astudent loan. The car loan...
You currently have two loans outstanding: a car loan and a
student loan. The car loan requires that you pay $316 per month,
starting next month for 26 more months. Your student loan is
requires that you pay $103 per month, starting next month for the
next 69 months. A debt consolidation company gives you the
following offer: It will pay off the balances of your two loans
today and then charge you $475 per month for the next 43...
You have just purchased a new home and have taken out a mortgage loan for $300,000...
You have just purchased a new home and have taken out a mortgage
loan for $300,000 at an interest rate of 4.00% and a maturity of 30
years. You will make 360 equal monthly payments.
What is the amount of your monthly payment? Please
fill in the amortization schedule below for the
first two months (month1 and 2) of the 360 months
that you will be paying on the mortgage.
Hint: PVA = Payment [1-(1+r)^-N / r]
Please fill in...
Lender Scenario: You are the loan officer for a commercial lender. You have just received a...
Lender Scenario:
You are the loan officer for a commercial lender. You have just
received a request from the company you are researching to provide
loan funds that will allow the company to buy back 3% of its
outstanding common stock. The company has indicated to you that it
feels their stock is undervalued at this time.
What is your response to their request?
What will this do to the company’s various debt and equity
ratios?
Given the competition, should...
Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...
Suppose that you are considering a conventional, fixed-rate
15-year mortgage loan for $300,000. The lender quotes an APR of 4%,
compounded monthly; mortgage payments would be monthly, beginning
one month after the closing on your home purchase. In the tenth
year of your mortgage (months 109 through 120), what would be the
total dollar amount of the interest paid?
Do not round at intermediate steps in your calculation
A) $9,619.05
B)$6,412.70
C)$5,284.99
D)$7,500.27
.
Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...
Suppose that you are considering a conventional, fixed-rate
15-year mortgage loan for $300,000. The lender quotes an APR of 4%,
compounded monthly; mortgage payments would be monthly, beginning
one month after the closing on your home purchase. In the tenth
year of your mortgage (months 109 through 120), what would be the
total dollar amount of the interest paid? Do not round at
intermediate steps in your calculation.
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