You buy a property valued at $4,000,000 and finance your purchase with a 70% LTV loan. The bank offers a 20 year amortization schedule with 5% interest and monthly payments and requires a balloon repayment after 5 years. This loan has a prepayment penalties of 5/4/2/2/2 points corresponding to each year of the prepayment. What will be your payment in month 30 if you decide to fully repay your loan (Hint: this includes the regular payment, the remaining balance and the prepayment penalty)? (e.g. if you get $13.57654, write 13.58)
You buy a property valued at $4,000,000 and finance your purchase with a 70% LTV loan. The bank offers a 20 year amortization schedule with 5% interest and monthly payments and requires a balloon repayment after 5 years. This loan has a prepayment penalties of 5/4/2/2/2 points corresponding to each year of the prepayment. What will be your payment in month 30 if you decide to fully repay your loan (Hint: this includes the regular payment, the remaining balance and the prepayment penalty)? (e.g. if you get $13.57654, write 13.58)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 85E: ExerciseInstallment Notes ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian...
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