User Account

All Pages

What is the monthly payment on the mortgage loan

Assignment Help Financial Management
Reference no: EM132023325

Suppose Bank of America quotes a 10% annual interest rate to you.  

If your deposit in the bank is compounded monthly what is the effective annual interest rate that your money earns?  

a. 11.04% b. 10.47% c. 10.12% d. 10.00%  

Suppose your money is compounded once a year in Bank of America. Your uncle promises you today that he will give you the following cash flows at the end each year for the next 5 years: $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. You decide to save your uncle’s annual gift in Bank of America. What is the present value of your uncle’s promise?  

a. 11,220.16 b. 14,249.34 c. 16,607.77 d. 15,633.62

You think the inflation rate in the future will be higher than the market expectation.

Which of the following types of mortgages would you like to take if you want to buy a house?  

a. adjustable rate mortgage (ARM) b. fixed rate mortgage (FRM) c. 5/1 ARM d. interest-only mortgage  

Which of the following mortgages would you most like to give if you are a loan officer?

a. adjustable rate mortgage (ARM) b. fixed rate mortgage (FRM) c. 5/1 ARM d. interest-only mortgage

A $200,000 conventional fixed-rate mortgage is financed for 15 years with 7% annual rate.  

What is the monthly payment?  

a. $1830 b. $1798 c. $1679 d. $1721

What is the loan balance after 10 years if paid as agreed?  

a. $92,721 b. $83,581 c. $85,492 d. $90,731

A $150,000 home is financed by a 30 percent down, 25-year, and 9 percent loan.

What is the monthly payment on the mortgage loan?  

a. $636.09 b. $881.25 c. $763.31 d. $677.82  

What was the amount of interest paid in the first month of the loan?  

a. $702.32 b. $787.50 c. $726.31 d. $583.33  

What is the remaining balance on the mortgage at the end of the 60th month?  

a. $ 81,450 b. $100,666 c. $ 79,097 d. $ 97,929  

Reference no: EM132023325

Questions Cloud

Wynn resort is good risk for us to take in the portfolio : Look at yahoo finance and morningstar. Do you feel Wynn Resort is a good risk for us to take in the portfolio?
Risk characteristics similar to the firm average project : Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project
Identify potential government credit resources for ventue : How might the venture acquire and finance the new equipment that is needed? Identify potential government credit resources for the venture.
The price of corresponding european call : explain why the price of an American call option on a stock paying no dividends should be the same as the price of a corresponding European call.
What is the monthly payment on the mortgage loan : Suppose Bank of America quotes a 10% annual interest rate to you. What is the monthly payment on the mortgage loan?
What is the total market value and book value of debt : What is the total book value of debt? What is the aftertax cost of the 7.4 percent coupon bond? What is the total market value of debt?
What is the percentage of equity : The firm is considering a $41.52 million expansion of their production facility. What is the percentage of equity used by McCann Catching, Inc.?
What is the npv of the new plant : Photochronograph Corporation (PC) manufactures time series photographic equipment. If the tax rate is 38 percent, what is the NPV of the new plant?
Dollar and sterling exchange rate : What is value in dollars of derivative that pays off 10,000 sterling in one year provided that dollar/sterling exchange rate is greater than 1.50 at that time.

Reviews

Write a Review

Financial Management Questions & Answers

  Companies likely face in manufacturing products

For years it has been cheaper to manyfacture many products overseas than in the United States. Labor is still less expensive overseas than in the U.S., but the cost difference has been decreasing. Why did Apple make an announcment in 2012 about its m..

  Determined utilizing annuity method of capital need analysis

An individual has determined utilizing the annuity method of capital needs analysis. how much more would he need to have at the beginning of his retirement?

  You should be willing to pay per share of microsoft stock

What is the most you should be willing to pay per share of Microsoft stock after your two year vacation?

  Calculate the expected return on EBI

Suppose you think there is a 20% chance that EBI will fall to $18.00 in one year, a 60% chance its price will be unchanged, and a 20% chance that its price will rise to $24.00. Calculate the expected return on EBI.

  Calculate what impact this will have on coca-cola wacc

You are tasked with estimating the cost of capital for the Coca-Cola Company. Calculate what impact this will have on Coca-Cola’s WACC.

  Compare debt-financing and equity-financing

Compare debt-financing and equity-financing when funding a new venture.

  The expected dividend on common stock

PriceSmart Shops has $50Min assets, $35 in debt, and $10M in common stock. The dividend preferred stock is $1.50 per share and its price is $25 and has a 5% commission. The expected dividend on common stock is $1.00 per share and its price is $20. As..

  What would be your total real return on investment

when the required return on the bonds is 7.75 percent. If the inflation rate was 3.6 percent over past year, what would be your total real return on investment.

  What is the present value of the sales proceeds

what is the present value of the sales proceeds? Is this a worthwhile investment?

  Methods available for mature business to raise capital

What are the methods available for a mature business to raise capital? How do these methods differ from those available to a start-up-business?

  Shares of preferred stock outstanding

JackITs has 6.0 million shares of common stock outstanding, 2.0 million shares of preferred stock outstanding, and 30.00 thousand bonds. If the common shares are selling for $29.10 per share, the preferred shares are selling for $14.50 per share, and..

  Rate on four-year treasury securities

The Wall Street Journal reports that the rate on 4-year Treasury securities is 7.05 percent and the rate on 5-year Treasury securities is 7.25 percent.

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