How much is your loan amount you need to borrow

Assignment Help Financial Management

Reference no: EM132020017

Suppose you want to buy a house and can afford monthly payments of principal and interest of about $1000. If you finance the loan over 20 years at 12%, what is the maximum price you could pay, that is how much is your loan amount you need to borrow to buy the house, assuming no down payments?

Reference no: EM132020017

Questions Cloud

Find the value of y given the characteristics : Take the first order conditions for the investor's problem.Find a formula for y*,the optimal fraction of wealth that the investor will invest in the risky asset

Has the euro appreciated or depreciated relative to dollar : Illustrate and explain carefully and fully what has happened to this bank's equity position as a result of this change in the euro per U.S.dollar exchange rate.

How many rupees will you receive in the conversion : If you have $1,520,000 and the exchange rate is $.0247 per rupee, how many rupees will you receive in the conversion?

What interest rate would you earn if you bought this bond : Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now.

How much is your loan amount you need to borrow : What is the maximum price you could pay, that is how much is your loan amount you need to borrow to buy the house, assuming no down payments?

Who should you take their advice : Assuming that the risk-free rate is 4% and the expected return on the market is 12%. Who should you take their advice? (choose one person).

What will be the swap rate on an agreement to exchange : What will be the swap rate on an agreement to exchange currency over a 3-year period?

What is the yield to maturity for treasury bonds that mature : To yield a risk free rare, R*, equal to 2 percnt, what would the average nominal rate be on (a) one-year bond (b)two-year bond (c) three year bond?

What annual rate of return is implied in the given value : You are offered an investment that will pay you a perpetuity of $1,000 per year forever. Its price is $39,600. What annual rate of return (discount rate).

User Account

All Pages