your dad wants to purchase a new house and lot in zamboanga city, so he decide to apply for housing loan from landBank using his existing house and lot collateral. the bank conducted an appraisal of his existing house an lot and came up with 2,000,000 appraised value. Your dad will pay the developer 20% down payment. The fair market value of the new house and lot is 1,500,000. What is the loan collateral ratio?
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your dad wants to purchase a new house and lot in zamboanga city, so he decide to apply for housing loan from landBank using his existing house and lot collateral. the bank conducted an appraisal of his existing house an lot and came up with 2,000,000 appraised value. Your dad will pay the developer 20% down payment. The fair market value of the new house and lot is 1,500,000. What is the loan collateral ratio?
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- Suppose that your parents are willing to lend you $20,000 for part of the cost of your college education and living expenses. They want you to repay them the $20,000, without any interest, in a lump sum 15 years after you graduate, when they plan to retire and move. Meanwhile, you will be busy repaying federally guaranteed loans for the first 10 years after graduation. But you realize that you won’t be able to repay the lump sum without saving up. So you decide that you will put aside money in an interest-bearing account every month for the five years before the payment is due. You feel comfortable with putting aside $275 a month (the amount of the payment on your college loans, which will be paid off after 10 years). How high an annual nominal interest rate on savings do you need to accumulate the $20,000 in 60 months, if interest is compounded monthly? Enter into a spreadsheet the values d 5 275, r 5 0.05 (annual rate), and n 5 60, and the savings formula with r replaced by r/12 (the…Suppose that your colleague has approached you with an opportunity to lend $25,000 to her laundry business in Accra. The business, called Do it yourself launderette, plans to offer home services to customers at area. Funds would be used to lease a delivery vehicle, purchase supplies, and provide working capital. Terms of the proposal are that you would receive $5,000 at the end of each year in interest with the full $25,000 to be repaid at the end of a ten year period Assuming a 10% required rate of return, calculate the present value of cash flows and the net present value of the proposed investment Based on this same interest rate assumption, calculate the cumulative cash flow of the proposed investment for each period in both nominal and present value terms?Allen plans to purchase a house in Lindfield this year, the selling price for the house is $3.8 million. Hewants to borrow 80% of the total capital from the bank using a principal and interest loan and pay 30-yearmonthly mortgage payments. CBA bank received his loan application and provided a valuation report basedon current market conditions. However, the bank valuation is conservative, stating the market value is only$3.5 million, and to lower the risk from the bank’s side, it only approves the loan with an LVR (Loan to ValueRatio) of 70% or less.Assuming that Allen wishes to borrow as much as possible from CBA bank, how much will his monthlypayments be for such a mortgage? The current interest rate from CBA is 3.19% P.A. Ignore other costs.
