Reference no: EM131014715
You have secured a loan from the bank for two years to build a new business location. The terms of the loan are that you will borrow $125,000 now and an additional $25,000 in one year. Interest of 10 percent APR will be charged on the balance monthly. Since no payments will be made during the 2-year loan, the balance will grow at the 10 percent compounded rate. At the end of the two years, the balance will be converted to a traditional 30-year mortgage at a 6 percent interest rate. What will you be paying as monthly mortgage payments (principal and interest only)
You also secured a loan from another bank for two years to build. The terms of the loan are that you will borrow $100,000 now and an additional $50,000 in one year. Interest of 8 percent APR will be charged on the balance monthly. Since no payments will be made during the 2-year loan, the balance will grow. At the end of the two years, the balance will be converted to a traditional 15-year mortgage at a 8 percent interest rate. What will you pay as monthly mortgage payments (principal and interest only)?
Calculate the monthly payments on both loans
Create a spreadsheet with the amortization and payment schedule. Include, Beginning balance, monthly payment, monthly payment towards interest and amount towards principal, total interest paid, and ending balance for both loans.
What do you need to take into consideration when deciding which loan to take.
|
Counting income from retirement funds
: John just turned 30 and will retire from his job when he turns 63. When John turns 63, he will stop working completely and have an after tax household income (not counting income from retirement funds) of $22,000 per year. He would like to be able to..
|
|
What volume of helium do you think you can breathe in
: A "pressure cooker" is a device that allows food to be cooked at pressures that are higher than atmospheric pressure. Explain why this device changes how your food is cooked.
|
|
Time passes mysterious forces convince
: You've already explored the lie of fate taking control of our destiny as we grow older. Now I want to expand your thinking to a related idea: King Mechizedek tells the boy that when we are children, "everything is clear and everything is possible," b..
|
|
Calculate the monthly payments on both loans
: You have secured a loan from the bank for two years to build a new business location. The terms of the loan are that you will borrow $125,000 now and an additional $25,000 in one year. Calculate the monthly payments on both loans. Create a spreadshee..
|
|
Value of the calculated test statistic
: a. State an appropriate null hypothesis. b. What is the value of the calculated test statistic (Z)? c. State your conclusion.
|
|
Why would company decide not to handle payment processing
: Outsourcing of payment system operations is a very popular alternative to accepting payments directly from customers. Why would a company decide not to handle payment processing? Does it really save time and money? What are the potential legal ramifi..
|
|
Find value of k
: If a line y=3x+6 is tangent to the circle x^2+y^2=9 at point (k,k+1) then find value of k?
|
|
Create a t-sql script that returns the student id
: Write a T-SQL statement that returns the faculty ID, last name and monthly salary of two faculty members with the two lowest monthly salary values.
|