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 how may the use of leases shift the risk of rising

1. How may the use of leases shift the risk of rising expenses from the lessor to the lessee? 2. What is the difference between base or face rents and effective rents? 3. What is meant by useable vs. rentable space? 4. W ...

How is that process-that curve-modified if this is a sheet

How is that process-that curve-modified if this is a sheet metal joint? Do variations in friction between male and female threads affect the torque-turn relationship? Describe the turn-of-nut procedure used in structural ...

Five years ago in conjunction with a financial

Five years ago, in conjunction with a financial restructuring, Laurenberg Electric sold a $100 million issue of bonds at a coupon interest rate of 12 percent. Each bond came with 30 detachable warrants. Each warrant enti ...

Imagine you obtained a point biserial correlation of 35

Imagine you obtained a point biserial correlation of .35 between gender and punctuality, showing that men arrived later to class than did women. You think that this correlation might be due to the fact that more women th ...

Suppose congress decides that investors should not profit

Suppose Congress decides that investors should not profit when stock prices go down so it outlaws short selling. Congress has not figured out options, however, so there are no restrictions on option trading. Explain how ...

A building owner is evaluating the following four

A building owner is evaluating the following four alternatives for leasing space in an office building for the next five years. Write a two-three page paper and prepare an Excel spreadsheet evaluating each of the four di ...

You are the senior assistant to the chairman of the board

You are the senior assistant to the Chairman of the Board of Hi-Teck Inc. In order to attract the chief operating officer of his choice from another firm, the Chairman offers the following incentive supplement to her bas ...

An electronic retail chain wishes to minimize its ordering

An electronic retail chain wishes to minimize its ordering costs for a particularly popular model of laptop computer. This retail has a line credit to finance its inventory and the current holding rate is 5.5%. The chain ...

Moodys has a separate ratings scale for municipal bonds

Moody's has a separate ratings scale for municipal bonds. Here is Moody's definition of its Aaa rating for municipal bonds: "Issuers or issues rated Aaa demonstrate the strongest creditworthiness relative to other US mun ...

1 small savers can usually receive a higher interest rate

1. Small savers can usually receive a higher interest rate from money market mutual funds than from bank savings accounts. So, how are banks able to attract small savers? 2. Financial journalist David Wessel has describe ...

  • 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