How much interest will you pay to the bank during year

Assignment Help Financial Management
Reference no: EM131081700

You borrowed $200,000 from a bank to buy a house at 4.5% interest for 30 years with monthly payments. How much do you need to pay every month? And how much interest will you pay to the bank during year 10 only?

A. monthly payment = 665.55 interest in year10 = 6974.68

B. monthly payment = 1,013.37 interest in year10 = 7,326.68

C. monthly payment = 765.55 interest in year10 = 6974.68

D. monthly payment = 1915.13 interest in year10 = 6737.68

E. monthly payment = 1915.13 interest in year10 = 7326.68

Reference no: EM131081700

Questions Cloud

What is the value of the constant c : What is the value of the constant c?
Stays at that price until the option expires : You have a short position in a put option on Apple Inc. common stock. The option has an exercise price of $122 and the stock is currently trading at $124.70. The option premium is $3.60 per contract. What is your net profit/loss if Apple Inc. stock p..
Declare the implicit interest for tax purposes : PomPom Co. recently issued a $1,000 face, 20 year zero coupon bond. The initial offering sold in January, 2000 for $350. Despite the fact that the bond doesn’t pay interest, the IRS says you must declare the implicit interest for tax purposes. What i..
Find the pmf of y the number of points scored in a 1 : Find the PMF of Y, the number of points scored in a 1
How much interest will you pay to the bank during year : You borrowed $200,000 from a bank to buy a house at 4.5% interest for 30 years with monthly payments. How much do you need to pay every month? And how much interest will you pay to the bank during year 10 only?
Pay inequality for women in construction business in texas : Using those experiences and feedback, you will develop a final proposal for a hypothetical study. Specifically, for this assignment, you are asked to develop an expanded proposal that incorporates the feedback you have received as well as your ow..
What was the stock price per share : What was the stock price per share of General Motors common stock at year end 2016? How did this compare to basic earnings per share? Would you invest (buy stock) in General Motors? Why or why not?
What is the minimum value of p necessary to meet your goal : What is the minimum value of p necessary to meet your goal.
Shorten the firm operating cycle : Which of the following would SHORTEN the firm's Operating Cycle all else the same?

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluate the proposed acquisition of new computer

The president of Lowell Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $60,000, and it falls into the MACRS 3-year class (33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4). The firm's m..

  Integer linear programming

Company X has seven pending tasks, each of which takes a given number of days to be finished. The amount of time required for each of the tasks are (in days): 10, 8, 6, 5, 4, 4 and 3. There are three employees that can be assigned to any of the tasks..

  What is the payback period and discounted payback period

A certain project has an initial investment of $4,208 and cash inflows of $3,500 for the first year and then $2,000 in year 2 and $800 in year 3.  If the discount rate is 13%, what is the NPV?  What is the IRR?  What is the MIRR?  What is the payback..

  Calculator inputs to receive full credit

Your boss has just given you a $5,000 bonus for the superb work you have been doing. You want to save some of that money for a trip to Bora Bora that you are hoping to take in 4 years. You must show your calculator inputs to receive full credit (Ex: ..

  More preferred stock issues than common stock issues

Over the last decade, in the U.S., there were more preferred stock issues than common stock issues. The yield curve almost always slopes upward. An asset that last year had a Sharpe ratio = 0 would have had acceptable performance. An equity that last..

  Present value of growth opportunities

Huron Manufacturing plans to pay a dividend of $5 per share. The growth rate is 7 percent and the discount rate is 12 percent. What is the present value of growth opportunities (PVGO)?

  Equal annual payments that include principal payments plus

Mr. Bill. S. Preston, Esq., purchased a new house for $150,000. He paid $25,000 upfront and agreed to pay the rest over the next 10 years in 10 equal annual payments that include principal payments plus 14 percent compound interest on the unpaid bala..

  Open market operations

Suppose the Federal Reserve increases deposits at financial institutions by $59 billion through its open market operations. If the reserve requirement for all deposits is 8%, what is the maximum impact the Fed's actions can have on total deposits?

  Change in interest rates will affect the bonds price

The rate of return that you would earn if you bought a bond and held it to its maturity date is called YTM. If interest rates rise after a bond has been issued. What will happen to the bond's price and YTM?Does the length of time maturity affect the ..

  The partnership form of an organization

The partnership form of an organization

  The real risk-free rate of return

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.6%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: On the basis of these data, what..

  When an organization needs to raise long term capital

What is the impact on WACC when an organization needs to raise long term capital? vii. What is an Initial Public Offering (IPO)? How does an IPO allow an organization to grow financially? viii. When is a merger or an acquisition, rather than an IPO, ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd