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

Many grocery stores and large retailers such as wal-mart

Many grocery stores and large retailers such as Wal-Mart and K-Mart have installed self checkout systems so shoppers can scan their own items and cash out themselves. How do customers like this service and how often do t ...

The president of fly-by-night airlines has asked you to

The president of Fly-by-Night Airlines has asked you to evaluate the proposed acquisition of a new jet. The jet's price is $40 million, and it is classified in the 10-year MACRS class. The purchase of the jet would requi ...

Formulate a polling station location problem taking into

Formulate a polling station location problem, taking into account the following binding constraints: (a) the number of polling stations is fixed for each municipality and calculated according to the number of resident vo ...

Capital budgeting analysis you have been asked to evaluate

Capital Budgeting Analysis : You have been asked to evaluate a potential acquisition of a smaller privately owned competitor. The acquisition candidate produces an EBITDA of 10% of your current EBITDA and is offered to y ...

A recent study that examined bone strength collected data

A recent study that examined bone strength collected data from cadaveric femurs from subjects in three age groups. The data are below. Does mean bone strength differ for the three age groups? Use a 5% level of significan ...

Discuss the differences between using 1 a terminal cap rate

Discuss the differences between using (1) a terminal cap rate and (2) an appreciation rate in property value when estimating reversion values.

Norsk is a danish company that specializes in food product

Norsk is a Danish company that specializes in food product for daily consumption. It has five associated subsidiaries in the European Union and a network of distributors in North America. Recently, the company has decide ...

How would you identify the best nut factor for your

How would you identify the best nut factor for your application? How much torque would be required to tighten an ASTM A193 Gr. B16 bolt with a 31/4-8 thread to 60% of yield? Why does a wrench create a side load on the bo ...

Suppose that the us firm halliburton buys construction

Suppose that the U.S. firm Halliburton buys construction equipment from the Japanese firm Komatsu at a price of ¥250 million. The equipment is to be delivered to the United States and paid for in one year. The current ex ...

You must show workinputs in order to receive partial

YOU MUST SHOW WORK/INPUTS IN ORDER TO RECEIVE PARTIAL CREDIT.  Lincoln Restaurants is introducing a new product this year. If "glow in the dark hamburgers" are a hit, the firm expects to be able to sell 500 units a year ...

  • 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