subject
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?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:40
The economic advisor of a large tire store proposes the demand function d(p)equalsstartfraction 1900 over p minus 40 endfraction , where d(p) is the number of tires of one brand and size that can be sold in one day at price p. answer parts (a) through (e) below. a. recalling that the demand must be positive, what is the domain of this function? the domain consists of all possible values of â–¼ for which â–¼ p d(p) â–¼ does not exist. is positive. is zero. is negative. exists.
Answers: 3
question
Business, 22.06.2019 05:50
Cosmetic profits. sally is the executive vice president of big name cosmetics company. through important and material, nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. it is expected that stock in big name cosmetics will rise dramatically at that point. sally immediately buys a number of shares of her company's stock. she also tells her friend alice about the expected purchase of stores. alice wanted to purchase stock in the company but lacked the funds with which to do so. although she did not have the funds in bank a, alice decided to draw a check on bank a and deposit the check in bank b and then proceed to write a check on bank b to cover the purchase of the stock. she hoped that she would have sufficient funds to deposit before the check was presented for payment. of which of the following offenses, if any, is alice guilty of by buying stock?
Answers: 2
question
Business, 22.06.2019 09:40
You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.
Answers: 3
question
Business, 22.06.2019 19:00
Describe how to write a main idea expressed as a bottom-line statement
Answers: 3
You know the right answer?
A borrower can obtain an 80 percent loan with an 8% interest rate and monthly payments. The loan is...
Questions
question
Social Studies, 06.01.2021 23:10
question
Mathematics, 06.01.2021 23:10
question
History, 06.01.2021 23:10
question
Mathematics, 06.01.2021 23:10
question
Mathematics, 06.01.2021 23:10
question
History, 06.01.2021 23:10
Questions on the website: 13722367