Find the costs of financing, Finance Basics

Find the costs of financing for two schedules of monthly payments on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% per year compounded annually, and downpay 10% of the house value at start. At the end of this mortgage you plan to pay off the house completely. The first monthly payment is 1 month from start.

Schedule A: you ramp down the monthly payments so that they decrease with time, by 0.5% per month compounded monthly.
Schedule B: you keep the monthly payments equal.

 

Posted Date: 3/22/2013 4:11:20 AM | Location : United States







Related Discussions:- Find the costs of financing, Assignment Help, Ask Question on Find the costs of financing, Get Answer, Expert's Help, Find the costs of financing Discussions

Write discussion on Find the costs of financing
Your posts are moderated
Related Questions
Attributes of venture capital Equity participation Venture Capital participates with direct purchase of shares or fixed return securities as debentures and prefere

If you inherited $ 45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar

Disadvantage of Joint Stock Companies Difficult to reconstruct the capital Many formalities in forming the company Heavy initial capital outlay. Loss of secrec

Explain Mechanics of security trading in Stock Exchange Introduction: An investor should have some knowledge of how the securities markets operate. Marketing of old or new se

Partnership Deeds This is an important document which governs the members in partnership firm. It covers among other things the following points:      i. The name, location,

What are the Advantages of placement Placement has the below benefits: (i) Timing of issue is significant for successful floatation of shares. In a depressed market cond

Dividend Ratios 1. Dividend per shares (DPS) = Earnings to ordinary shareholders/ Number of ordinary shares Specify cash returns received for all share holders. 2. Di

1. A stock pays no dividend and is expected to be sold for $50 after 4 years. If the investor's RRR is 12%, at what price is he/she willing to buy it? 2. ABC company has its ROE