What rate of return mr tramp receive by prepaying the loan

Assignment Help Finance Basics

Reference no: EM132004209

Question: Mr.Tramp made a mortgage 5 years ago for $85000 at 8.25% interest and a 15 year term. Rates have now risen to 10% for an equivalent loan. Mr.Tramp's lender is willing to discount the loan by $2000 if he will prepay the loan. What rate of return would Mr.Tramp receive by prepaying the loan? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132004209

Questions Cloud

Trevor would earn by selling the bonds today : If the current price of the bonds is $6,500, what is the yield that Trevor would earn by selling the bonds today?

What is the value of a stock that has an expected dividend : What is the value of a stock that has an expected dividend of $1.50 one year from now? The dividend is expected to grow at 4% per year.

God through three essential resources : "Spiritual formation is divinely enabled by God through three essential resources: God's Word, God's Spirit, and God's people

What does our choice of heroes and role models : What does our choice of heroes and role models or the lack of heroes and role models reveal about our society and ourselves?

What rate of return mr tramp receive by prepaying the loan : Mr.Tramp made a mortgage 5 years ago for $85000 at 8.25% interest and a 15 year term. Rates have now risen to 10% for an equivalent loan.

Find the expected cash flow from each apartment complex : Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights.

Language disorder and a speech disorder : What is the difference between a language disorder and a speech disorder? List and describe one example of each.

Write a memo to the tax file discussing the facts of the tax : Write a memo to the tax file discussing the facts of the tax question. Communicating conclusion and any advice

Lists the series in ascending order of returns : Which of the following lists the series in ascending order (smallest first) of returns over the past 90+ years?

User Account

All Pages