How much did you borrow from the bank

Assignment Help Microeconomics
Reference no: EM132423124

Problem: You took a 30 year mortgage with monthly payments of $1200. The loan rate is 11% (APR) compounded monthly.

Question 1: How much did you borrow from the bank?

Question 2: You have 25 years left on the mortgage, what is your outstanding balance?

Question 3: Interest rates have gone down to 6% (APR compounded monthly) and you wish to refinance. Assume you wish to continue payments for the next 25 years, what is the new monthly payment?

Question 4: Bank imposes a penalty on closing loans early. What is the maximum penalty the bank can impose such that refinancing will be worthwhile?

Reference no: EM132423124

Questions Cloud

What are the ethical responsibilities of the government : What are the ethical responsibilities of companies that sell foods accused of contributing to the "obesity crisis"?What are the ethical responsibilities
Estimating the current bond price : The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current bond price?
Contrast processes and end products of mitosis and meiosis : Compare and contrast the processes and end products of mitosis and meiosis. Explain what is meant by differential net reproductive success.
Unit 4 - Database Design and Development Assignment : Unit 4: Database Design and Development Assignment Help and Solution. Test the system against user and system requirements
How much did you borrow from the bank : Problem: You took a 30 year mortgage with monthly payments of $1200. The loan rate is 11% (APR) compounded monthly.
Evaluate the viability of the purchase : While the work is being done now, your consulting fee will be paid in 2 years. Should the Oil Company buy the machine?
Calculate the present value of the lease payments : Calculate the present value of the lease payments, assuming monthly compounding at the given APR of 8%.
What is the six-month forward rate : The spot rate for Yen is 104.00 Yen per USD and the six-month Yen and USD interest rates are 2% and 3% (both expressed with continuous compounding).
What is the price of a one-year european put option : What is the price of a one-year European put option on the stock with a strike price of $50?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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