Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. Compute the equal monthly payments and the cost of financing on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% per year compounded monthly. You are required to downpay 10% of the house value at the beginning. At the ending of this mortgage you plan to pay off the house completely. The first monthly payment is one month from the start of the mortgage.

2. Compute the equal monthly payments and the cost of financing on a 10-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% per year compounded daily. You are required to downpay 10% of the house value at the beginning. At the end of the mortgage you plan to pay off one-half of the today's cash value of the house. The first monthly payment is one month from the start of the mortgage.

3. Compute the today's cash value of a car that can be leased with $5000 down, bi-weekly payments of $199 over 4 years and a buy-back value of $15,000 at the end of the lease if the financing interest rate is 4.9% per year compounded daily. First bi-weekly payment is two weeks after the beginning of the lease.

4. Find out the costs of financing for two schedules of monthly payments on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% per year compounded annually, and downpay 10% of the house value at start. At the end of this mortgage you plan to pay off the house completely. The first monthly payment is 1 month from start.

Schedule A: you ramp down the monthly payments so that they diminish with time, by 0.5% per month compounded monthly.
Schedule B: you keep the monthly payments equal.

5. Evaluate the probability of 10 or more customers arriving in 2 hours if on average 7 customers arrive within one hour. Customers arrive independently.

6. Compute the range of monthly financing rates for which the schedule of monthly cash flows is profitable:

Month Cash Flow, $
--------------------
0 -10,100
1 +23,000
2 -13,000
--------------------

7. Find the probability of 6 successes and 6 failures to occur, in any order, if the probability of a success is 0.7 and of a failure is 0.3; results of each trial are independent of each other.

8. Using the table below, compute the amount of overall increase of your purchasing power over the period of 5 years given the annual investment return rates and annual inflation rates:

Year Investment Return Rate, % Inflation, %
-----------------------------------------------
1 5 2
2 10 9
3 15 20
4 10 10
5 15 10
-----------------------------------------------

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91328

Have any Question? 


Related Questions in Basic Finance

1 in a transportation firm what types of things will change

1. In a transportation firm, what types of things will change operating revenues? Operating expenses? 2. If a transportation firm shows a rise in revenue per passenger mile, what does this increase imply? 3. How is the p ...

1 if 2 buys pound1 and 22 buys pound1 how many euros are

1. If $2 buys £1 and 2.2 buys £1, how many euros are required to buy $1? 2. A student makes the following observation: "During May 2010, the euro depreciated sharply against the U.S. dollar. That was good news for attend ...

1 why are scientists skeptical of post hoc explanations2

1. Why are scientists skeptical of post hoc explanations? 2. Why are operational definitions important in research?

Go to the home page of cisco systems inc httpwwwciscocom

Go to the home page of Cisco Systems, Inc. (http://www.cisco.com) and link to its financial reports page. Download the most recent annual report and observe the capital investment and dividend policies of Cisco Systems. ...

Explain how the repurchase agreement plays a role in the

Explain how the repurchase agreement plays a role in the pricing of futures contracts. What is the implied repo rate? Identify and explain some factors that make the execution of stock index futures arbitrage difficult i ...

Imagine that you are a participant in a research study for

Imagine that you are a participant in a research study. For each of the following scenarios, describe how you would probably react, and explain how your reactivity would influence your responses. a. A researcher tells yo ...

An investor can make an investment in a real estate

An investor can make an investment in a real estate development and receive an expected cash return of $45,000 at the end of six years. Based on a careful study of other investment alternatives, she believes that a 9 per ...

1 for each of the following patterns of databull what is

1. For each of the following patterns of data, • What is the probability of the researcher having made a Type 1 error? • What is the probability of the researcher having made a Type 2 error? • Should the null hypothesis ...

1 compare and contrast manufacturing and geographic

1. Compare and contrast manufacturing and geographic postponement. 2. Define and illustrate cash-to-cash conversion, dwell time minimization, and cash spin. How do supply chain strategy and structure impact each? 3. Disc ...

Explain why interest rate swaps are more widely used than

Explain why interest rate swaps are more widely used than currency and equity swaps? Explain how swaps are similar to but different from forward contracts ? Suppose that a party engages in a swap, but before the expirati ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro