Business, 12.02.2020 02:15 khayes7400

A borrower is faced with choosing between two loans. Loan A is available fof $75,000 at6 percent interest for 30 years, with 6 points to be included in closing Costs. Loan B would bemade for the same amount, but for 7 percent interest for 30 years, with 2 points to be included inthe closing costs. Both loans will be fully amortizing. a. If the loan is repaid after 20 years, which loan is the better choice?
b. If the loan is repaid after 5 years, which loan is the better choice?
c. Suppose the lender includes a prepayment penalty of 4 percent in the mortgage loan. If the loan is repaid after 5 years, which loan is the better choice

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 22:50

Assume that the governance committee states that all projects costing more than $70,000 must be reviewed and approved by the chief information officer and the it senior leadership team (slt). at this point, the cio has the responsibility to ensure that management processes observe the governance rules. for example, the project team might present the proposed project in an slt meeting for a vote of approval. what does this scenario illustrate about organizational structure?

Answers: 2

Answer

Business, 22.06.2019 07:30

Why has the free enterprise system been modified to include some government intervention?

Answers: 1

Answer

Business, 22.06.2019 14:20

Frugala is when sylvestor puts $2,000 into 10-year state bonds and $3,000 into 5-year aaa-rated bonds in steady hand hardware, inc. he buys the four state bonds at a 5 percent interest rate and the three steady hand bonds at a 6.5 percent rate. sylvestor also buys $1,500 worth of blue chip stocks, and $800 worth of stock in a promising new sportswear company that reinvests its earnings in new growth. 1. (a) what is the maturity for each of the bond groups sylvestor buys? (b) the coupon rate? (c) the par value?

Answers: 3

Answer

Business, 22.06.2019 14:40

Increases in output and increases in the inflation rate have been linked to

Answers: 2

Answer

You know the right answer?

A borrower is faced with choosing between two loans. Loan A is available fof $75,000 at6 percent int...

Questions