Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Amortization schedule with a balloon payment:

You wish to buy a house which costs= $110,000. You have= $11,000 for down payment, but your credit is such that mortgage companies won’t lend you required $99,000. Though, realtor persuades seller to take a= $99,000 mortgage (called a seller take-back mortgage) at a rate of= 7%, given the loan is paid off in full in three years. You expect to inherit= $110,000 in three years; but right now all you have is= $11,000 and you can pay for payments of no more than $9,000 per year provided your salary. (The loan would call for monthly payments, but suppose end-of-year annual payments to make things simpler.)

a) If loan amortized over three years, Find how large would each annual payment be?

b) If loan were amortized over thirty years, what would each payment be?

c) What would loan balance be at ending of Year three?

d) What would balloon payment be?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915007

Have any Question? 


Related Questions in Basic Finance

A companys current ratio is 30 if the company uses cash to

A company's current ratio is 3.0. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and asset turnover ratio? Current Ratio: Decrease; Ass ...

1 develop at least three behavioral measures of each of the

1. Develop at least three behavioral measures of each of the following conceptual variables. Consider measures that are based on frequency, speed, duration, latency, and intensity. Consider the extent to which each of th ...

1 compare the assessment of face content and construct

1. Compare the assessment of face, content, and construct validity. Which of the three approaches is most objective, and why? Is it possible to have a measure that is construct valid but not face valid? 2. What is the im ...

A share of common stock is currently selling for 2773 the

A share of common stock is currently selling for $27.73. The last dividend paid was $1.60 per share. The marketrate of return is 10%. At what rate is the dividend growing?

Beta ltd just paid a dividend of 040 and dividends are paid

Beta Ltd just paid a dividend of $0.40 and dividends are paid once a year. Dividends are expected to grow at 4% p.a. for each of the next five years and then to remain constant forever. Assume a required rate of return o ...

Comparing investment criteria consider the following two

Comparing investment criteria. Consider the following two mutually exclusive projects: Year               Cash Flow (A)                   Cash Flow (B) 0                     -$455,000                          -$65,000 1  ...

1 discuss the rationale and risks associated with using a

1. Discuss the rationale and risks associated with using a common forecast to drive the firms planning/coordination flow. 2. Discuss the role of the CRM system in enhancing the firms competitiveness. 3. Discuss how advan ...

1 tall trees inc is using the net present value npv when

1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the pr ...

If a companys use of debt financing increases as compared

If a company's use of debt financing increases, as compared to equity financing, what would you expect to find in terms of a change in return on equity if the company's return on assets remains the same? If a company has ...

J smythe inc manufactures fine furniture the company is

J. Smythe, Inc., manufactures fine furniture. The company is deciding whether to introduce a new mahogany dining room table set. The set will sell for $6,800, including a set of eight chairs. The company feels that sales ...

  • 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