How much money will the bank loan you

Assignment Help Financial Management
Reference no: EM131864368

You are ready to buy a house and you have $50,000 for a down payment and closing costs. Closing costs are estimated to be 3.5% of the loan value. You have an annual salary of $120,000. The bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan.

How much money will the bank loan you?

How much can you offer for the house?

Create a loan amortization table in Excel and submit the spreadsheet.

Reference no: EM131864368

Questions Cloud

Discuss the internal control factors : Describe how a company makes a purchase starting with the requestor deciding on the specifications of what they want to purchase.
Describe the chaebol organisational style : Describe the chaebol organisational style? How does this effect management practices? How might culture - both organisational as well as national culture affect
What exactly is the interpretation of the term w-mpl : What exactly is the interpretation of the term w/MPL? Explain why a company must satisfy the condition w/MPL = r/MPK.
How much can you withdraw in equal amounts each year : Suppose you plan to save $8,000 per year for the 40 years you are working. How much can you withdraw in equal amounts each year for the 35 years you are retired
How much money will the bank loan you : You are ready to buy a house and you have $50,000 for a down payment and closing costs. How much money will the bank loan you?
Some of reasons that make foreign manufacturers : what are some of the reasons that make foreign manufacturers like volkswagen and GM decide to invest in china?
Firm balance sheet provide to the viewing public : What information does a firm's balance sheet provide to the viewing public?
To measure value-concept of time value of money is used : To measure value, the concept of time value of money is used
Provide an opportunity to engage in the strategic marketing : Provide an opportunity to engage in the strategic marketing process.Discuss how retailers can create and sustain a competitive advantage.

Reviews

Write a Review

Financial Management Questions & Answers

  Goodwill should be depreciated

Goodwill arises when one company acquires another company for a price in excess of the fair market value of the net identifiable assets acquired. Goodwill should be depreciated. Goodwill must be evaluated annually to determine if there has been a los..

  Calculate eac for each machine

Vandelay Industries is considering the purchase of a new machine for the production of latex. Calculate the EAC for each machine. (

  Calculation of net present value and internal rate of return

What are the differences in the calculation of net present value and internal rate of return?

  What is the cost of borrowing maximum amount of credit

MDM Inc. is considering factoring its receivable. The firm has credit sales of $600,000 per month and an average receivable balance of $600,000 with net 90 credit terms. What is the cost of borrowing the maximum amount of credit available to MDM Inc...

  What is the volatility of this? investment

Your investment portfolio consists of ?$12,000 invested in only one stocklong dash Microsoft. Suppose the? risk-free rate is 5 %?, Microsoft stock has an expected return of 10 % and a volatility of 45 % and the market portfolio has an expected return..

  P-e ratio gives us simple way to conduct equity valuation

P/E ratio gives us a simple way to conduct equity valuation, but there are still some shortcomings in P/E analysis. What are the potential shortcomings when we use P/E ratio to evaluate equity price? What are the alternative valuation ratios/models t..

  Assume both bonds are selling at premium

Which one of these is included in the yield of a bond with a low credit rating but not included in a U.S. Treasury bond yield? Assume both bonds are selling at a premium.

  The clientele effect in demand for dividend paying stocks

Describe the clientele effect in demand for dividend paying stocks. What sort of investors should wish to hold dividend paying stocks and which should not? Why?

  What is the percentage change in the price of bond

Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has five years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the perc..

  Cultural values-extra cash to pay special one-time dividend

Electronic Timing, Inc., (ETI), is a company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently entered the mark..

  The greatest price change for given change in interest rates

Which of the following bonds as the greatest price change for a given change in interest rates?

  What are benefit of adopting strategic planning approach

What are the benefit of adopting strategic planning approach in managing Ghanaian businesses and its associated limitations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd