Business, 06.12.2021 19:40, vanessafalcon1198
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).
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 15:00, AldecuaF10
Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?
Answers: 1
Business, 22.06.2019 18:00, KayBJ2005
Acountry made education free in mandatory up to age 15. it is established 100 new schools to educate kids across the country. as a result, citizens acquired the _ required to work. the school's generated _ for teachers and other staff. in 20 years, to countryside rapid _ and its gdp.
Answers: 3
Business, 22.06.2019 19:30, Wayne4345
John's pizzeria and equilibrium john is selling his pizza for $6 per slice in an area of high demand. however, customers are not buying his pizza. using what you learned about the principles of equilibrium, write three to four sentences about how john could solve his problem.
Answers: 1
Business, 23.06.2019 02:30, PinkyUSA18
Complete electronics inc. sells a point-of-sale computer with a two-year service contract. complete collects $ 2 comma 500 cash for the selling price of the computer and $ 576 for the two-year service contract. how is revenue recognized?
Answers: 2
Do you know the correct answer?
Assume that you have purchased a home and can qualify for a $300,000 loan. You have narrowed your mo...
Questions in other subjects:
Spanish, 01.10.2019 04:30
English, 01.10.2019 04:30
