Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You want to buy a house that costs $110,000. You have $11,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $99,000. However, the realtor persuades the seller to take a $99,000 mortgage (called a seller take-back mortgage) at a rate of 7%, provided the loan is paid off in full in 3 years. You expect to inherit $110,000 in 3 years; but right now all you have is $11,000, and you can afford to make payments of no more than $9,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.)

a. If the loan amortized over 3 years, how large would each annual payment be? Round your answer to the nearest cent.

c. If the loan were amortized over 30 years, what would each payment be? Round your answer to the nearest cent.

c. What would the loan balance be at the end of Year 3? Round your answer to the nearest cent.

d. What would the balloon payment be? Round your answer to the nearest cent.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939335

Have any Question? 


Related Questions in Basic Finance

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?

Please put the answer in a word document or excel

Please put the answer in a word document or excel spreadsheet. Thank you - see attached file first.  Calculate the expected return and standard deviation of for single stocks and portfolio You have estimated the followin ...

One advantage of displaying correlational data in a scatter

One advantage of displaying correlational data in a scatter plot is that you can literally see the relationship in the graph. a. In a scatter plot, what pattern of points would indicate a positive relationship between va ...

Discussionmiddot managed care contracting and ratio

Discussion · Managed Care Contracting and Ratio Analysis" · From the scenario, interpret the operating indicators used to analyze the financial performance of the organization. Indicate specific ways in which this inform ...

Able company is selling a bond for 867 the bond is with a

Able Company is selling a bond for $867. The bond is with a 20% coupon rate annually, and will mature in 10 years. The company's shareholders are receiving a 22.5% return. The company is subject to a 25% tax rate. The co ...

In the banks perspective should we lend money to amazon or

In the banks perspective, should we lend money to Amazon or not. Look at and analyze Amazon's 10-K form. By looking at Amazon's financial statements, focus on liquidity ratios, profitability, and long term debt. Why shou ...

Assume on a recent day the january 2017 sampp index futures

Assume on a recent day, the January 2017 S&P Index futures contract (i.e., the S&P contract which expires in January of next year) closed at 2000, down 40 points on the day. The value of the contract is set at 250 × the ...

Suppose that you wish to buy stock and protect yourself

Suppose that you wish to buy stock and protect yourself against a downside movement in its price. You consider both a covered call and a protective put. What factors will affect your decision? You have inherited some sto ...

1 affordable payments what should you consider when

1. Affordable Payments. What should you consider when determining an affordable down payment and monthly mortgage payments? 2. Selection Criteria . List the criteria you should use when selecting a home. 3. Selection Cri ...

Trading pesos for greenbacks the dollarization of san

TRADING PESOS FOR GREENBACKS THE DOLLARIZATION OF SAN MIGUEL With its economy shrinking and inflation being the highest in the western hemisphere, the president of San Miguel has decided that his country should abandon i ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen