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FIN 301 - HW#1

# Your mortgage has 25 years left and has an apr of

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Unformatted text preview: onthly payments of \$1449. a. Whatiseoundgblc? \$194,02 b. Suposeycantmkhrg doueianflsyrhtcou.Tebankfdrgtiylo.Thebanxpcs\$150,frtuioel.Thywrpamntsgeilcvhaou(nprstem).Ifc25-yaogintrsehvdp5%(APR),watislomnhypeucdkfrtaingloyhwudberctvank? PMT = \$876.88 5-20. Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25%. With this mortgage your monthly payments would be \$2000 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of \$2000 every month, you can make half the payment every two weeks (so that you will make 52 ⁄ 2 = 26 payments per year). With this plan, how long will it take to pay off the mortgage of \$150,000 if the EAR of the loan is unchanged? I=.197%, PV=-150000, N=177.98 5-28. Consider a project that requires an initial investment of \$100,000 and will produce a single cash flow of \$150,000 in five years. a. WhatiseNPVofprjcv-ynta%eis(E5AR)? \$17,528.9 b. WhatiseNPVofprjcv-yntaeisE10%A(R)? -\$681.0 c. Whatisegfv-yrnucthpojeislfab? 8.447%...
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