What will be your annual payment if you sign this mortgage

Assignment Help Financial Management

Reference no: EM131986754

1. You are thinking of purchasing a house. The house costs $300,000. You have $43,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 9% per year. What will be your annual payment if you sign this mortgage?

The annual payment is $_

(Round to the nearest doller)

2. What must the rate be less than to be worth it to incur a compensating balance of $1,200 in order to get a 1.5-percent lower interest rate on a 1-year, pure discount loan of $100,000?

Reference no: EM131986754

Questions Cloud

What is its free cash flow : This year, FCF Inc. has earnings before interest and taxes of $10230000, depreciation expenses of $500000, what is its free cash flow?

Bond price in dollars and percentage terms : What will be the change in the bond’s price in dollars and percentage terms?

Some to be highly risky and equivalent to gambling : The derivatives markets are viewed by some to be highly risky and equivalent to gambling.

Net working capital does the firm need to fund : How much net working capital does the firm need to fund?

What will be your annual payment if you sign this mortgage : You are thinking of purchasing a house. What will be your annual payment if you sign this mortgage?

What is the internal return rate of the fixed asset : The system will generate a post-tax cash flow of $ 2,205.23 each year. What is the internal return rate of the fixed asset ?.

Position as fund manager for well known investment : you are managing should invest $25 million dollars in the stock of the company you have selected for your first analysis/investment decision.

Kari is a gastroenterologist who has thriving practice : Kari is gastroenterologist who has thriving practice. She has sizeable net worth and income. Buying a PLUP with more than $1 million of coverage is unnecessary.

What is the value of the stock today : Computech Corporation is expanding rapidly and currently needs to retain all of its earnings, what is the value of the stock today?

User Account

All Pages