User Account

All Pages

Amount of private mortgage insurance

Assignment Help Financial Management
Reference no: EM131317569

Does anybody know how to do this question? Please show the formula, thank you very much!

Purchase price=150,000

L/V=85%

Monthly payment

Interest rate=3%

30 years term

Private mortgage insurance cost: 9%/28%

So what is the loan balance at the end of 10 years of scheduled payments?

And what is the amount of private mortgage insurance added to each payment in the first year?

Reference no: EM131317569

Questions Cloud

What is the polarization of the field : Find the magnetic field intensities adjacent to the sheet and on either side of it. What is the polarization of the field?
Unlevered cash flows : ABC Corp. is considering expansion of its production capacity by investing in a project with the following unlevered cash flows (UCF):
Short-term debt increase without pushing its current ratio : Current and Quick Ratios The Nelson Company has $1,690,000 in current assets and $650,000 in current liabilities. Its initial inventory level is $390,000, and it will raise funds as additional notes payable and use them to increase inventory. How muc..
Calculate the after tax cost of overlapping interest : Calculate the dollar amount of interest that must be paid for each bond during the interest overlap period.- Calculate the after-tax cost of overlapping interest for each bond if the firm is in the 40 percent tax bracket.
Amount of private mortgage insurance : So what is the loan balance at the end of 10 years of scheduled payments? And what is the amount of private mortgage insurance added to each payment in the first year?
How did recession affect us trade relations and us dollar : How were GDP, inflation, and unemployment affected during the recession, and how does the model show this? How did the recession affect U.S. trade relations and the U.S. dollar exchange rate?
Income statement lists the income and expenses : Income Statement Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $705,500, Interest expense = $51,000, and Taxes = $222,500. Bullseye's has no preferred stock outstanding and 250,000 shares of common stock outst..
What is the sustainable growth rate : Pizza Pie maintains a constant debt-equity ratio of .55. The firm had net income of $14,800 for the year and paid $12,000 in dividends. The firm has total assets of $248,000. What is the sustainable growth rate?
Find the currents crossing the following straight lines : What are the energy densities associated with the electric and magnetic fields?

Reviews

Write a Review

Financial Management Questions & Answers

  Accept or reject these projects based on payback analysis

You are considering two mutually exclusive projects. Project A has cash flows of -$72,000, $21,400, $22,900, and $56,300 for years 0 to 3, respectively. Should you accept or reject these projects based on payback analysis?

  Determine the number of payments required

A loan of WOO is to be repaid by annual payments of 100 to commence at the end of year and to continue thereafter for as long as necessary. If the loan cannot be repaid using integer number of regular payments, we simply pay the smaller additional ba..

  The most expensive car you can purchase is

You want to buy a new car, but you know that the most you can afford for payments is $ 375 per month. You want 48 month financing, and you can arrange such a loan at 6 percent compounded monthly. You have nothing to trade and no down payment. The mos..

  Discuss the costs and benefits of cutting dividends

Regulators put great pressure on banks to reduce their common dividend payments when asset problems appear. Discuss the costs and benefits of cutting dividends.

  The basis of future worth comparison at an interest rate

An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing company. Robot A will have a first cost of $90,000, an annual maintenance and operation cost of $35,000, and a $45.000 salvage value. Which should be selecte..

  A firm that follows a residual dividend policy will probably

A firm that follows a residual dividend policy will probably have:

  Bonds would have greatest percentage increase

Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?

  What is the firms market value capital structure

Bluefield Corporation has 5 million shares of common stock outstanding, 750,000 shares of 7 percent $100 par preferred common stock outstanding, and 250,000 11% coupon bonds outstanding, par value 1,000 each, interest paid semiannually. What is the f..

  Avoided by hedging its exchange rate exposure

A U.S. importer makes a purchase from a German firm in the amount of 21,000 euros. At the current spot rate of 0.75 Euros per dollar, how much is this purchase in U.S. dollars? If in 90 days the dollar weakens so that the spot rate is 0.70 Euros per ..

  What does bill believe the inflation rate

An investment offers a total return of 14 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 8.1 percent. What does Bill believe the inflation rate will be over the next year?

  One of the big consulting firms

Suppose you work for one of the big consulting firms and Maytag has just hired your firm to tell them what to do in the case of the following: Maytag knows that they can produce a washing machine for $300, which covers all costs and profit. Based upo..

  Bond pricing-assume annual interest payments

Bond Pricing. A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume annual interest payments.) (LO6-1 and LO6-2) a. What interest payments do bondholders receive each year? b. At..

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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