DF% (Debt financing rate) = 60%; ER (Required rate of return on equity) = 15%; Original Loan = $500,000 with annual payment of 5% for 30 years 1) What is the mortgage constant? (Round to the nearest 0.01) 2) What is the annual payment of the loan? (Round to the nearest $1) 3) What is the capitalization rate?
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DF% (Debt financing rate) = 60%; ER (Required
1) What is the mortgage constant? (Round to the nearest 0.01)
2) What is the annual payment of the loan? (Round to the nearest $1)
3) What is the capitalization rate?
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- Effective Cost of Short-Term Credit Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12% nominal rate; (b) borrow on a 3-month, but renewable on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus increasing its accounts payable. Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?What is the Debt Coverage Ratio assuming a $267,500 NOI/Cash Flow, a $3,500,000 loan with a 4.25% interest rate and 30 year amortization compounded monthly? Round to nearest hundredth.Calculate the annual change in interest expense that would occur for a drop in interest rates from 6% to 4% for a borrower with $5,000,000 in variable-rate debt. a. -$100,000 Ob. $200,000 O c. $300,000 d. $100,000
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- Please answer all parts. Question 1) Purchase price: $395,000 Mortgage Amount: 80% LTV, 30 year fixed at 5% PAID ANNUALLY. Loan Origination expenses: 3% of total loan amount. NOI: $48,000 / Year Required return on investment (levered): 11% Expected price appreciation: 5% per year Selling Expenses: 4% Expected holding period: 2 Years What is the levered cash flow at time 0? What is the levered cash flow at time 1? What is the before tax equity reversion (BTER)? What is the total levered cash flow for time 2? What is the levered IRR?What is the maturity value of a 40,000 loan after 3 years if the rate of interest is 6% per annum? Choices: a. 47,200 b. 48,000 c. 45,000 d. 42,670assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of 6 percent and 4 discount points at origination. a. What is the monthly payment Assuming that it is based on an amortization period of 30 years? b. What will be the required balloon payment at the end of the tenth year? c. What is the effective borrowing cost on the loan if it is held to maturity? Give typing answer with explanation and conclusion
- What is the equity position of the lender, RBC, at the end of 13 years if a corporate loan of $A is financed and amortized over 20 years with payments of $3,200 for the first 12 years and $4,000 for the next 8 years, and with a 5% annual interest rate, provided all payments are made as scheduled? (Answer to the nearest dollar) A. $25,853 B. $16,905 C. $23,145 D. $19,613Given the following information about a fully amortized loan, calculate the lender’s yield (rounded to the nearest tenth of a percent) if the loan were to be paid off in 4 years. Loan amount: $568,000 Term: 30 years Interest rate: 8.23 % Monthly Payment: $4,259 Discount points: 1.5 3rd Party Costs: $7,500 8.60% 7.80% 8.70% 8.50%consider the following information, what is the NPV if the borrower refinances the loan? expected holding period: 5 years, currently laon balance: 100,000, current loan interest 9%, remaining term on currentl loan: 15, new loan interest 7.5%, new loan term 30 years, cost of refinancing 4,250