Calculate the required stock purchase

Assignment Help Financial Management

Reference no: EM131899009

Suppose a farmer wants to borrow $176,590.00 to buy a tract of land. The BCS bank will make a 22-year loan fully amortized at 6.19% (annual payments). A $443.00 loan fee and stock purchase is required. The borrower stock requirement is the lesser of $1,000 or 3.00% of loan amount.

(i) Calculate the loan principal.

a. $181,521.05 b. $178,089.12

c. $182,508.25 d. $178,033.00

Enter Response Here:

(ii) Calculate the required stock purchase.

a. $5,340.99 b. $1,000.00

c. $5,274.64 d. $1,760.24

Enter Response Here:

(iii) Calculate the annual loan payments.

a. $15,032.59 b. $15,037.33

c. $15,410.47 d. $15,327.12

Reference no: EM131899009

Questions Cloud

How can you measure the impact a new system : How can you measure the impact a new system (new ERP system implementation) will have on the staff (company personnel)?

Calculate her monthly mortgage payment on the original loan : Based on the information, please calculate her monthly mortgage payment on the original loan.

What is state of infrastructure and does it limit tourism : What is the state of the infrastructure and does it limit tourism? What natural and/or created attractions exist to attract tourists?

Discuss the primary job responsibilities of a dba : At a high-level, discuss the primary job responsibilities of a DBA?

Calculate the required stock purchase : Calculate the loan principal. Calculate the required stock purchase.

Examine why the site is relevant : You will be required to find and analyze an internet resource site that is relevant to parent-child relationships.

Is a nat server a firewall : Is a NAT server a firewall? What are some similarities and differences?

Growth rate and the required return are unaffected : What is the stock’s price if the required return is 8 percent? What happens to the stock’s price if the growth rate and the required return are unaffected?

Get a static method called balancecheckbook : I need to find a way to get a static method called balanceCheckbook that takes a console Scanner as a parameter and that prompts a user for information

User Account

All Pages