Reference no: EM132500775
You are buying a house and the mortgage company offers to let you pay a? "point" ?(1.0% of the total amount of the? loan) to reduce your APR from 6.08% to 5.83 % on your $ 403,000, 30?-year mortgage with monthly payments. If you plan to be in the house for at least five? years, should you do? it? ?(Note: Be careful not to round any intermediate steps less than six decimal? places.)
The monthly mortgage payment at 6.08 % is $___ ?(Round to the nearest? cent.)
The monthly mortgage payment at 5.83 % is $___ ?(Round to the nearest? cent.)
The lower interest rate on the mortgage results in monthly savings of ?$___(Round to the nearest? cent.)
The PV of the monthly savings is ?$___ (Round to the nearest? cent.)
The balance of the mortgage at the end of five years at 6.08 % APR is ?$___ ?(Round to the nearest? cent.)
The balance of the mortgage at the end of five years at 5.83 % APR is ?$___ (Round to the nearest? cent.)
The principal reduction due to the lower interest rate is ?$___ ?(Round to the nearest? cent.)
The PV of the principal reduction is ?$___ ?(Round to the nearest? cent.)
The net benefit or cost is ?$___ ?(Round to the nearest? cent.)
The net benefit is (negative or positive) therefore, you (should or should not) pay the point.
|
Describe the effectiveness of the use of spirituality
: Post your explanation of the significance of addressing spirituality with the elderly. Identify a spiritually based intervention for this population.
|
|
What are the price and bond equivalent yield
: A Treasury bill that settles on May 18, 2016, pays $100,000 on August 21, 2016. Assuming a discount rate of 1.87 percent, what are the price and bond equivalent
|
|
Weightings of the two assets in the portfolio
: The risk-free asset currently earns 3%. If the portfolio of the two assets has a beta of 0.9, what are the weightings of the two assets in the portfolio?
|
|
What is the yield to maturity on a treasury strips
: What is the yield to maturity on a Treasury STRIPS with 13 years to maturity and a quoted price of 76.507?
|
|
Mortgage with monthly payments
: If you plan to be in the house for at least five? years, should you do? it? ?(Note: Be careful not to round any intermediate steps less than six decimal? places
|
|
Determine the structure of boards
: Q) Which of the following is TRUE about the structure of Boards?
|
|
What is the project mirr
: What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
|
|
Illustrate impression management and social tuning
: In 750-1,000 words, provide a minimum of four personal examples to illustrate impression management, social tuning, social comparisons, mindsets.
|
|
Value-destroying for the shareholders
: If the acquirer's earnings per share (EPS) decrease after a merger, then we know that the premium paid by the acquirer was higher than the synergies
|