Business, 15.10.2020 08:01 Svetakotok
A borrower can obtain an 80 percent loan with an 8% interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 8.5% rate with the same loan term. The borrower plans to own the property for the entire loan term.
a. What is the incremental cost (%) of borrowing the additional funds? (Hint: the dollar amount of the loan does not affect the answer)
b. How would your answer change if two points were charged on the 90 percent loan?c. Would your answer to part (b) change if the borrower planned to own the property for only ve years?
Answers: 1
Business, 21.06.2019 22:10
3. now assume that carnival booked lady antebellum in december 2016 to perform on the june 2017 western caribbean cruise. further assume that carnival pays lady antebellum its entire performance fee of $52,000 on december 28, 2016, for the june 2017 cruise. what journal entry will carnival make on december 28, 2016, for its payment to lady antebellum?
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Business, 23.06.2019 11:40
Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons, due to the popularity of his local country western band, farmer tony has more students requesting lessons than he has time for if he is to also maintain his farming business. farmer tony charges $25 an hour for his guitar lessons. one spring day, he spends 10 hours in his fields planting $130 with of seeds on his farm. he expects that the seeds he planted will yield $300 worth of wheat a. 130 b. 260 c. 170 d. $-80
Answers: 1
A borrower can obtain an 80 percent loan with an 8% interest rate and monthly payments. The loan is...
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