Ann would like to buy a house. it costs $2,500,000. her down payment will be $50,000. she will take out a mortgage for the remainder. it will be a 30 year, fully amortizing, frm, with constant monthly payments and monthly compounding. the annual interest rate is 4.00%. she will pay $5,000 in closing costs at origination. she will also pay 1.75% of the balance in buy-down points at origination. note: the home is bought and the loan is taken in month 0, the first payment is due in month
1. in the spreadsheet where it says "cash inflow", "outflow" and "net cash flow" you should only take into account cash flow related to the mortgage.
2. fill in the spreadsheet (sheet "fa amortization schedule") for ann. (it is called an amortization schedule or amortization calendar.)
3. compute ann's annualized irr for the mortgage in the spreadsheet. (use the net cash flow.)
(3.a) what is the annualized irr for the mortgage?
(3.b) is it higher or lower than the mortgage contract rate?
(3.c) why? in excel

Look at this check register. calculate the current balance. check date transaction (+) deposit balance 5/1 5/3 $82.92 debit 8.00 78.24 005 monthly fee phone bill paycheck 1 125.00 5/15 5/17 5/20 atm 40.00 56.50 006 t ennis lessons the current balance is?

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work?