Calculate the monthly payments of the mortgage

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Reference no: EM131894003

1. A bank is offering a 20 year mortgage of $100 000, APR on the mortgage is 8.12%, the nominal interest rate is 7.5%.

1) Calculate the monthly payments of the mortgage.

2) Calculate the total amount of fees and expenses of the mortgage.

3) Calculate the amortized fees and expenses of the mortgage.

(Can you please list any equations you use and what you used them for)

2. Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 25 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $1.30 per share. What is the current value of one share of this stock if the required rate of return is 8.75 percent?

$77.83

$70.09

$83.90

$74.34

$94.92

Reference no: EM131894003

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