You obtain a loan of $300,000 at 5.75% amortized over thirty years with monthly payments.

Can you please help me the steps of this Finance Math problem?

You obtain a loan of $300,000 at 5.75% amortized over thirty years with monthly payments. You are required to pay closing costs and fees of 1.0% of the loan amount to the lender. What is the yield of the loan if paid off at maturity?

Expert Solution

first calculate the monthly payments

PV = 300,000, FV = 0, rate = 5.75%/12, N = 360

use PMT function in Excel

monthly payments = 1,750.7186

PV = 300,000, FV = -0.01*300,000, PMT = -1750.7186 , N = 360

use rate funciton in Excel and multiply by 12

yield = 5.7664%

jeff jeffy answered 2 years ago

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?

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If...

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If the annual percentage rate on this mortgage is 4% : What is the monthly payment on this loan? What is the balance of this loan AFTER the 14th payment is made? How much of the 8th payment is allocated to interest? How much of the 19th payment is allocated to principal?

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?

A loan amount of L is amortized over six years with monthly payments (at the end...

A loan amount of L is amortized over six years with monthly payments (at the end of each month) at a nominal interest rate of i(12) compounded monthly. The first payment is 500 and is to be paid one month from the date of the loan. Each subsequent payment will be 1% larger than the prior payment. (a) If i(12) = 9%, find the principal repaid in the 25th payment. (b) If i(12) = 12%, find the amount of loan...

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest...

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest on the loan is j12=12%. The principal repaid in the 25th payment is $206.41.What is the size of the loan?

A loan is amortized over five years with monthly payments at an annual nominal interest rate...

A loan is amortized over five years with monthly payments at an annual nominal interest rate of 6% compounded monthly. The first payment is 1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 3% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

A mortgage of 198,000 is to be amortized by monthly payments over 22.5 years. If the...

A mortgage of 198,000 is to be amortized by monthly payments over 22.5 years. If the payments are mafe at the end of each month and interest is 8.75% compounded semi-amnually, what is the size of monthly payments?

Ali has a $35,000 student loan at 4.40% compounded monthly amortized over 10 years with payments...

Ali has a $35,000 student loan at 4.40% compounded monthly amortized over 10 years with payments made at the end of every quarter. a. What is the size of Ali's payments at the end of every quarter? b. What was the principal portion of payment 13? c. What was the size of Ali's' final payment?

An $8000 loan is to be amortized with equal monthly payments over a 2 year period...

An $8000 loan is to be amortized with equal monthly payments over a 2 year period at j (12) = 8 %. Find the outstanding principal after 7 months and split the 8 th payment into principal and interest portions. outstanding principal after 7 months is? the principal in the 8 th payment is? the interest in the 8 th payment is?

A loan of $330,000 is amortized over 30 years with payments at the end of each...

A loan of $330,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.9%, compounded monthly. Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the...

Question