What is the loan payment per year

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Q1. Alfredo borrows a loan of $100,000 for his new restaurant at 8% for 5 year with a 4 point up-front clause. What is the effective amount borrowed for this loan?

a. 104,000

b. 100,000

c. 96,000

d. 4,000

Q2. A _______ includes but not limited to the following calculations: annual cash flows, sale price, annual return on investments, and net present value.

a. Sources and Users of Funds statement

b. Business plan

c. Financial analysis

d. Line-item budget

Q3. The following are all combinations and/or part of a project team except:

a. the developer, architect, interior designer, and construction companies

b. the general contractors, subcontractors, structural engineers

c. all the individuals involved and not the firms

d. letters of agreement of service and resumes

Q4. Collaterals and guarantees are all of the following except:

a. something a borrower would want to include when negotiating a loan

b. assets a lender asks for and accepts as security for a loan

c. for the protection of the lender in case the loan defaults

d. personal guarantees are more risky for the borrower than collaterals

Q5. Juanita's loan for her bakery is $100,000, 6%, 4 years, with 2 points charged. What is the loan payment per year (nearest whole number)?

a. 25,000

b. 21,200

c. 28,859

d. 29,158

Reference no: EM133059380

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