The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property.

Darrell Frye is planning to buy an office building at a cost of $988,000. He must pay 10% down and has a choice of financing terms. He can select from a 7% 30-year loan and pay 4 discount points, a 7.25% 30-year loan and pay 3 discount points, or a 7.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical.

1. What is the amount being financed?

2. If Darrell chooses the 4-point 7% loan, what will be his total outlay in points and payments after 48 months?

3. If Darrell chooses the 3-point 7.25% loan, what will be his total outlay in points and payments after 48 months?

4. If Darrell chooses the 2-point 7.5% loan, what will be his total outlay in points and payments after 48 months?

5. Of the three choices for a loan, which results in the lowest total outlay for Darrell?

1. You are ready to buy a house and you have $50,000 for a down payment and closing costs. Closing costs are estimated to be 2.5% of the loan value.   You have an annual salary of $200,000. The bank is willing to allow your housing costs – mortgage, property tax and homeowners insurance to be equal to 28% of your monthly income. You have estimated that property tax will be $1,000/month and homeowner’s insurance will be $100/month. The interest rate on the loan is 3.4% per year with monthly compounding for a 30-year fixed rate loan.
   1. How much money will the bank loan you?
   2. How much can you offer for the house?
   3. Create a loan amortization table in Excel and submit the spreadsheet. This should be done with monthly payments.

What determines the value of a bond? Write down the formula for determining the price of the bond and explain it briefly?

When performing a CVP Analysis, it is important to break down costs into

a) Product and Period costs

b) Prime and Conversion costs

c) Fixed and Variable costs

d) Fixed, Mixed and Variable costs

Neutrons are born out of fission at a high energy and must be slowed down to the low energy region, called the “thermal energy” region, to cause another fission. A material called a “moderator” is used to slow the neutrons down, or “moderate” them, by elastic scattering collisions.The average neutron energy coming out of fission of thermal neutrons is 1.98 MeV in kinetic energy. What is the number of collisions required to bring its average kinetic energy to 0.1 eV if it elastically scatters off of the following moderators:

a. Hydrogen-1

b. Hydrogen-2

c. Carbon-12

d. Uranium-238

The cart rolls down an incline. The launcher fires the ball in a direction perpendicular to the cart. Show that the ball lands back in the cart.

A futures price is currently 100. It is expected to move up to 120 or down to 70 over the next year. The risk-free interest rate is 6%. What is the value of a 1-year call option with a strike price of 98?

Group of answer choices

15

10.4

7.2

5.7

A composition of n is made by breaking n down into summands. For example, the compositions of 3 are {3}. {2 + 1}, {1 + 2}, {1 + 1 + 1}. In general, there are 2^(n-1) compositions of n. Prove that there are 3^(n-1) double compositions of n.

write down a brief note on urinary bladder cancer?
Note: No plagiarism.

A home is purchased for 395,000 with a 10% down payment and a 30 year amortized mortgage charging 3.6% compounded monthly find: a) the amount borrowed, b) the size of the monthly mortgage payment and c) the total interest paid over 30 years?