Use this scenario to answer the following questions.

Ten years ago, you took out a $500,000 loan to buy a small apartment building. The loan had a 6.25% interst rate, 25-year amortization and, like all mortgage loans, had monthly payments and interest compounding. Currently, mortgage rates have declined so that you could refinance the current loan balance with a new loan having a 5.75% interest rate and 20 year amortization period. You intend to own the property for 5 more years and are considering refinancing.

a) Calculate the payments on the original loan
b) Calculate the current loan balance of the original loan
c) Calculate the loan balance of the original loan 5 years from now.
d) Using the current, lower interest rate, calculate the present value of the remaining original loan payments (i. e. the PV of 60 monthly loan payments and the repayment of the loan balance after 5 years)
e) Assume you refinance, taking out a new loan at the lower rate with an initial balance equal to the current balance of the original loan (i. e. the new loan amount is your answer from part b). Calculate the payments on this new loan.
f) Calculate the loan balance of the new loan 5 years from now.

Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?

What are six resources for you decide which type of business to start and how to start it?

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving