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- [Question 21 Galoraz Bhd has a line of credit of RM325,000 with an interest rate of 1.85 percent per quarter. Their short-term investments earning is 0.48 percent per quarter. What is the effective annual interest rate (EAR) on this arrangement if the line of credit goes unused all year? Assume any funds borrowed or invested use compound interest. Select one: A. 7.61% B. 2.14% C. 1.93% D. 10.38%M=(Lr[1+(r)/(12)]^((12t)))/(12[(1+(r)/(12))^(12t)-1]) Where: L = the loan amount in dollarsr = the annual interest rate expressed as decimalt = the number of years of the loanM = the monthly payment in dollars You are looking to buy a $415,000.00 home in Haverhill. If Bank ofAmerica will give them a 30-year mortgage at 3.25% annual interest rate forthe cost of the house after they receive a 20% down payment.A. Determine the loan amount? B. How much their monthly payment will be?C. At the end of the 30-years, how much total money will you have paid toBank of America for your home? In another word how much did the$415,000.00 house really cost the couple? D. How much interest will they have paid? Quantitative Reasoning ProjectE. How many of her monthly payment go toward the interest? F. What percent increase over the cost of the home does this interestrepresent? G. Redo and re-answer all questions, but this time for 15 years? Do analysis comparison between 30 and 15 years mortgage (at…Q) Compute the interest paid on a 30-year mortgage for $315,073 if the annual interest rate is 4.3%. Solve it early
- QUESTION 5 Please use excel Robert has borrowed $339,000 to purchase a house in the current year at 5.5% interest rate, with a commitment to repay the loan (principal and interest) in equal annual instalments over the following 15 years. Calculate the: a) the yearly annuity payment is = $ b) the amount of the principal repayment in year 2 is = $ c) total amount of interest paid = $ d) if the interest rate decreases to 3% the total amount paid over the life of the loan would be = $ Provide your answers to 2 decimal places. Show all your working in your spreadsheet.PROBLEM 10 A developer deposits $84,720 for 7 months and earns $4055.46 in simple interest.Find the interest rate.REFINANCING A MORTGAGE. USE WOR SHEET 5.4. Lily Nguyen purchased a condominium four years ago for 200,000, paying 1,250 per month on her 162,000, 8 percent, 25-year mortgage. The current loan balance is 152,401. Recently, interest rates dropped sharply, causing Lily to consider refinancing her condo at the prevailing rate of 6 percent. She expects to remain in the condo for at least four more years and has found a lender that will make a 6 percent, 21-year, 152,401 loan, requiring monthly payments of 1,065. Although there is no prepayment penalty on her current mortgage, Lily will have to pay 1,500 in closing costs on the new mortgage. She is in the 15 percent tax bracket. Based on this information, use the mortgage refinancing analysis form in Worksheet 5.4 to determine whether Lily should refinance her mortgage under the specified terms.
- Klp.3 you invest $1,100,000 in equity into a property and the broker tells you that the property would produce a cash-in-cash return of 10%. it has a debt service of $85,000 annually. What is the net operating income?q 3 Say that you purchase a house for $284,000 by getting a mortgage for $250,000 and paying a $34,000 down payment. If you get a 30-year mortgage with an interest rate of 8 percent, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment? What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.) Loan balance? If the house appreciates at 4 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value? How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Equity?A4) Finance Your bank's current maximum combined loan-to-value is 80%. Joseph is purchasing a home from Mr. and Mrs. Silva for $160,000. Joseph has $32,000 in cash for a down payment and the Silvas have negotiated a seller carryback loan in the amount of $28,000. What is the maximum allowable loan amount?
- f4. Subject :- Accounting What is the future value in 5 years of a $7,000 investment placed into a bank account today that will pay you 12% interest compounded quarterly? What is the present value of an investment that will pay you $1500/year forever? Use i=9% What is the present value of an investment that will pay you $2500/year forever? Use i=6%! Use Data Given ! bartleby = 3 max questions 7. An investment of P 20000 earned P350 for 180 days, what is the annual rate of interest? 8. Bench loaned P10000 in a bank to be paid after 3 years with an interest of 10% compounded semi-annually and P15000 to be paid after 4.25 years at 8% compounded quarterly. How much must he pay after 7 yrs at an interest rate of 12% compounded monthly to settle everything?q 13 A local furniture store is advertising a deal in which you buy a $6,000 living room set with three years before you need to make any payments (no interest cost is incurred).How much money would you have to deposit now in a savings account earning 6 percent APR, compounded monthly, to pay the $6,000 bill in three years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)PRESENT VALUE? How much would you have to deposit in the savings account each month 6 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.)ANNUITY PAYMENT?