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Calculate the required stock purchase

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Reference no: EM131899009

Suppose a farmer wants to borrow $176,590.00 to buy a tract of land. The BCS bank will make a 22-year loan fully amortized at 6.19% (annual payments). A $443.00 loan fee and stock purchase is required. The borrower stock requirement is the lesser of $1,000 or 3.00% of loan amount.

(i) Calculate the loan principal.

a. $181,521.05 b. $178,089.12

c. $182,508.25 d. $178,033.00

Enter Response Here:

(ii) Calculate the required stock purchase.

a. $5,340.99 b. $1,000.00

c. $5,274.64 d. $1,760.24

Enter Response Here:

(iii) Calculate the annual loan payments.

a. $15,032.59 b. $15,037.33

c. $15,410.47 d. $15,327.12

Reference no: EM131899009

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