User Account

All Pages

Accept the change in interest rates

Assignment Help Finance Basics
Reference no: EM132545923

A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.

Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.:

A. Convert the interest rate J2=9% to J12 equivalent

B. Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate?

Assuming that the family seeks to continue their initial monthly payment calculated in part I, how many full payments would be required to pay off the loan and what would be the final concluding smaller payment one period later

Reference no: EM132545923

Questions Cloud

THT3114 Tourism Research and Analysis Assignment : THT3114 Tourism Research and Analysis Assignment Help and Solution, Academies Australasia - Assessment Writing Service - summary table listing each variable
Compare dell supply chain and logistics innovations : Compare Dell's supply chain and logistics innovations with the competitive responses from competitors such as the Apple Store and others.
Describe one government financed program : Students are to identify a local (city or county) or state government of their choosing, and prepare a 100 words policy memo addressed to the head of that.
Journalize the adjusting entry needed : Journalize the adjusting entry needed at 2019 year-end (December 31, 2019) for each situation. Each scenario should be considered independently
Accept the change in interest rates : Assuming that the family seeks to accept the change in interest rates, what would be their new payment based on the new interest rate?
How do core values of purple cloud influence viable options : How do the mission, vision, and core values of Purple Cloud influence the viable options? A discussion with rationales supported by research
Evaluate effective strategies for leading diverse groups : The purpose of this assignment is to evaluate effective strategies for leading diverse groups at various levels of an organization while fostering.
Size of each of the 24 semi-annual deposits : To pay back a debt due in 12 years, Flinstone Inc. will be making deposits into a separate investment account (a sinking fund)
What is the company wacc : The yield to maturity on the bonds is 9%, and the firm's tax rate is 40%. What is the company's WACC?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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