How many years would you plug into mortgage constant

Assignment Help Financial Management

Reference no: EM131328962

Given the following answer the questions below:

1 year adjustable rate loan

Caps are 2%/8%

Margin is 2

30 years term

initial rate charged is 6%

Assume the index goes as follows: Yr.1=5.8% Yr.2=7% Yr.3=7% Yr.4=6% Yr.5= 9% Yr.6=12% Yr.7=5% Yr.8=14%

1:What is the rate charged in year2?

2:What is the rate charged in year5?

3:What is the rate charged in year8?

4.How many years would you plug into the mortgage constant for calculating the payment in the 5th year of the loan?

5.The maximum possible rate of interest is?

Reference no: EM131328962

Questions Cloud

What is the annual dividend on txs preferred stock : Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of $ 6262 per share. The preferred shares pay dividends annually at a rate of 1212 %. What is the annual dividend on TXS preferred stock?

Which security protocols are used to protect e-mail : Which kind of attack on cryptosystems involves using a collection of pre-identified terms? Which kind of attack involves sequential guessing of all possible key combinations?

What is the book trying to say about colonialism : What is the book trying to say about colonialism? How are the characters- and other elements in the book- employed to deliver the author's message? Create your own thesis statement that describes the message behind the book and provide enough tex..

Was the permission to search voluntarily given : How will you decide this legal issue? Was the permission to search voluntarily given?

How many years would you plug into mortgage constant : Assume the index goes as follows: Yr.1=5.8% Yr.2=7% Yr.3=7% Yr.4=6% Yr.5= 9% Yr.6=12% Yr.7=5% Yr.8=14%. What is the rate charged in year 2 ? What is the rate charged in year 5 ? What is the rate charged in year8? How many years would you plug into th..

What is steganography and what can it be used for : Which security protocols are predominantly used in Web-based electronic commerce?

What are trends in the united states and around the world : What is class inequality and what are trends in the United States and around the world? Who are the poor in the United States of America and what is the relationship between social mobility, inequality and education?

What are the six components of pki : What is the difference between digital signatures and digital certificates?

Discuss air traffic management and energy efficiency : Inadequate air routes coupled with congestion to air sector and adverse weather conditions have in the past led to environmental problems, economic problems and safety hazards in the aviation industry. This has led to creation of negative aspects ..

User Account

All Pages