User Account

All Pages

What is the effective borrowing cost on this loan

Assignment Help Financial Accounting
Reference no: EM132868566

Question - Consider a 30-year, $250,000 monthly payment mortgage with a 6% contract rate. If prepaid, the loan also requires borrowers to pay a 3% prepayment penalty on any prepaid principal amount in excess of 20%but less than 50%of the outstanding loan balance, and a 5% prepayment penalty on any prepaid principal amount in excess of 50% of the outstanding loan balance. If the loan requires borrowers to pay 3.0 discount/origination points up-front, what is the effective borrowing cost on this loan if the mortgage is repaid in full after 10 years?

Reference no: EM132868566

Questions Cloud

Prepare the appropriate journal entry to record income taxes : No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes in 2022
Which option should be selected and why : Variable Factory Overhead P16.00, Fixed Costs for the plant would increase by P75,000. Which option should be selected and why
Compute net income for the first year for Tri Fecta : Tri Fecta, a partnership, had revenues of $200,000 in its first year of operations. Compute net income for the first year for Tri Fecta
Allocate gain and loss for the year : Allocate gain and loss for the year 2 using a target allocation method. The asset was not depreciated and there was no other business activity in year 1 and 2
What is the effective borrowing cost on this loan : If the loan requires borrowers to pay 3.0 discount/origination points up-front, what is the effective borrowing cost on this loan
How difficult some issues can be to answer : How difficult some issues can be to answer, think about a similar experience you have had professionally - post a reply to your original post and state
How much will be reported on the December balance sheet : If Coaster Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 balance sheet as accounts receivable
Compute the amount of loss : Ignoring income taxes, compute the amount of loss, if any, to be recognized by Pina as a result of retiring the $1,320,000 of bonds in 2020
Prepare Bonita December adjusting entry : Bonita uses the effective-interest method with an effective rate of 8%. Prepare Bonita's December 31, 2020, adjusting entry

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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