Remaining life of the mortgage

Assignment Help Finance Basics
Reference no: EM131041713

Floating Real Estate offers you a deal with ABC Bank for a mortgage with a down payment of$200,000 (paid on the day of purchase of the apartment) and the balance financed by a 6.5% p.a.fixed interest (compounded quarterly) mortgage with a term of 20 years with quarterly payments (first payment is paid on the day of purchase of the apartment). Unfortunately, this fixed interest rate will last only three years and then the rate will be variable for the remainder of the mortgage. ABC Bank estimate the variable rate will be 7.5% at the beginning of year 4. For the purpose of your calculation this variable rate is assumed to remain constant over the remaining life of the mortgage. Application fees for this loan are $4000, which must be paid in cash on the date of purchase.

Can you please calculate the payment amount and schedule for me? I had a payment amount of $28,687.62 for first 3 years, and then $30,652.83 after that. However if the first payment is purely principal, this would be different?

Reference no: EM131041713

Questions Cloud

Show to recover damages from express delivery : Dixie, a driver for Express Delivery Company, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spr..
Eproducts corporation market competing software products : Data Analytics, Inc., and eProducts Corporation market competing software products. Data Analytics launches an advertising campaign claiming that eProducts, instead of testing software before it is marketed, has customers “test” the software by using..
Purpose of five distributive bargaining negotiation skills : Discuss two of the following statements then respond to at least two of your classmates’ postings. Define and explain the purpose of the Five Distributive Bargaining Negotiation Skills. Discuss the “Zone of Possible Agreement” (ZOPA) and why some exp..
Experimenting with the metacircular evaluator : Eva Lu Ator and Louis Reasoner are each experimenting with the metacircular evaluator. Eva types in the definition of map, and runs some test programs that use it. They work fine. Louis, in contrast, has installed the system version of map as a p..
Remaining life of the mortgage : ABC Bank estimate the variable rate will be 7.5% at the beginning of year 4. For the purpose of your calculation this variable rate is assumed to remain constant over the remaining life of the mortgage. Application fees for this loan are $4000, wh..
Negotiated an agreement covering pay rates : The employees of Powder Power Tools corp. were represented by a labor union that had negotiated an agreement covering pay rates. A number of employees did not receive the higher rates of pay specified in the union contract. The employer claimed that ..
How have these reinventions personally affected you : What other industries might have to realign their business model because of digital information?
Question regarding the corporate bond spreads : Assess today's risk premium on industrial bonds using the Bonds Online Web site. Select the Today's Market section and then choose Corporate Bond Spreads. Use the information in this area to answer the following questions:
Create new bindings for variables by means : Scheme allows us to create new bindings for variables by means of define, but provides no way to get rid of bindings. Implement for the evaluator a special form makeunbound! that removes the binding of a given symbol from the environment in which ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Provide a discussion of the trends in companys industry and

conduct an analysis of a fortune 500 company and prepare a report that includes the followingprovide a discussion of

  Statistical thinking in health care

Ben Davis had just completed an intensive course in Statistical Thinking for Business Improvement, which was offered to all employees of a large health maintenance organization.

  Assume a pair of pants imported from mexico costs 1500 usd

assume a pair of pants imported from mexico costs 15.00 usd. the same pair costs 105 pesos in mexico. what is the

  Estimating required return on stocks

Stock A has a beta of .8, Stock B has a beta of 1, and Stock C has a beta of 1.2. Portfolio P has similar amounts invested in each of three stocks.

  What is bobs risk tolerance

Bob has the following in his portfolio: 30% in Fixed-Income, 60% in Equities and 10% in Cash. What is Bob's investment objective? Growth or Income. What is Bob's risk tolerance?

  Permanent versus seasonal funds requirements find the

1. permanent versus seasonal funds requirements. manchester industries current fixed and total assets for each month

  What will be the expected real retirement annuity from each

george more is a participant in a defined contribution pension plan that offers a fixed-income fund and a common stock

  Discussion of management''s ability to manage earnings

Discussion of management's ability to manage earnings in the long-term

  What are the differences between a cash budget and an

what are the differences between a cash budget and an income statement? why not skip the cash budget and just keep a

  Wagner inc estimates that its average-risk projects have a

wagner inc estimates that its average-risk projects have a wacc of 10 its below-average risk projects have a wacc of 8

  Which bond will give you the highest capital gain

What is the duration if the yield to maturity is 8.0% - Which bond will give you the highest capital gain?

  What is the firm average net float

On a typical day, ABCD corporation writes 8,000 in checks. It generally takes 3 days for those checks to clear. Each day the firm typically receives $13,000 in checks that take 4 days to clear. What is the firm's average net float?

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