User Account

All Pages

What is the monthly payment

Assignment Help Business Economics
Reference no: EM132286077

Jairam Sukhram wants to borrow $400,000 in a residential mortgage from the Bank of Northwestern Ontario so that he can buy a condo in Leslieville. Jairam loves time value of money problems and so he figures out the details himself to make sure he can afford the payments. The interest rate is 3.99% per annum for a five year term and the amortisation period is 25 years.

a) What is the monthly payment?

b) Five years go by and it is time to renew. The bank will charge 3.79% on the loan. If he keeps to the original amortisation plan, the mortgage will have 20 years until it is paid off. How much will his monthly payment be after renewal, if he does stay with the original amortisation that now has 20 years to run?

c) An alternative plan is to keep the same payment amount that he paid for the first five years and change the length of the amortisation period. Is there a good reason to adopt this alternative plan? No calculation required.

Reference no: EM132286077

Questions Cloud

What is pretax cost of dept : The issue makes semiannual payments and has a coupon rate of 9 percent.
Make difference for their fellow wounded veterans : Dwight Rickenbacker and Omar Shariff were two American Army Veterans who wanted to make a difference for their fellow wounded veterans.
Luxury goods and data processing industries : Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries tend to have low leverage.
Describe the threats that might impact each node : Describe each node, asset, and link in the network. If these are too numerous, you may elect to describe types of assets and links.
What is the monthly payment : Jairam Sukhram wants to borrow $400,000 in a residential mortgage from the Bank of Northwestern Ontario so that he can buy a condo in Leslieville.
Why firms in these industries would prefer to have high : Explain why firms in these industries would prefer to have high leverage. Include some news from an article that is less than a year old that is applicable
How you have learned to think like an ecosystem : Your final paper is to be a well-researched, narrative expression of how you have learned to think like an ecosystem. In other words, no matter what.
How the selected computer crime victimizes someone : Imagine you have been asked to address the following items listed below. Remember that your textbook has several crimes listed in chapter one.
The E-learning training program : In this case the managers may believe that mentoring or coaching would be more useful than the e-learning training program because

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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