Assume that you have purchased a home and can qualify for a $300,000 loan. You have narrowed your mortgage search to the following two options: Mortgage B
Loan term: 15-years
Annual interest rate: 4.5 percent
Monthly payments Up-front financing costs: $7,500
Mortgage A
Loan term: 30 years
Annual interest rate: 5 percent
Monthly payments Up-front financing costs: $5,500
Discount points: 3 Note: 1 discount point = 1% of loan amount
a) (3 points) Calculate the effective borrowing cost to the borrower.
b) (3 points) Compute Lender's Yield.
c) (3 point) Based on the effective borrowing cost, which loan would you choose? Explain your answer using your calculations from a) and b).

Which of the following best describes biochemical evidence that would not support the modern concept of evolution? a. a bacterium that uses inorganic materials to produce energy b. an organism that does not undergo cellular respiration c. a species of bacteria that is capable of photosynthesis d. an organism that undergoes both aerobic and anaerobic respiration

The distinction between a normal and an inferior good is

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)