User Account

All Pages

Payment requpayment reqired by the two alternative mortgages

Assignment Help Finance Basics
Reference no: EM133073301

In purchasing a house, you need to obtain a mortgage with a present value (loan amount) of $175,000. You have a choice of: (A) a 30 year mortgage at an interest rate / year of 9.74% or (B) a 15 year mortgage at an interest rate / year of 9.46%. What is the annual payment required by the two alternative mortgages? How much of each year's payment goes to paying interest and how much to reducing the principal balance by the two alternative mortgages? Which mortgage would you prefer?

Reference no: EM133073301

Questions Cloud

What does the capitalization table look like : An Angel Investor makes a Seed Round investment of $750,000 in an entrepreneur's venture using a Simple Agreement for Future Equity (SAFE), as shown below.
What must the risk-free rate be : A stock has an expected return of 13.4 percent and a beta of 1.15, and the expected return on the market is 12.4 percent. What must the risk-free rate be?
What amount should Wall report as rental income : Wall Co. leased office premises to Fox Inc. for a four-year term beginning January 2, Year 1. What amount should Wall report as rental income
What would be the cost of new equity : Banyan Co.'s common stock currently sells for $34.75 per share. The growth rate is a constant 6%, and the company has an expected dividend yield of 3%. The expe
Payment requpayment reqired by the two alternative mortgages : In purchasing a house, you need to obtain a mortgage with a present value (loan amount) of $175,000. You have a choice of: (A) a 30 year mortgage at an interest
Prepare the adjusting journal entries : First prepare the journal entry, if any, required to record each of the initial business activities on September 1. Then, prepare the adjusting journal entries
Explain the capital budgeting techniques : You are a Finance Manager for a major utility company. Respond to the following
How much money should she borrow to buy additional shares : If she can borrow at 5% and wants to achieve a rate of return of 29%, how much money should she borrow to buy additional shares in Pinder Ltd
Designing relational databases : Demonstrate skills in the area of designing relational databases to satisfy specific business rules and requirements

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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