Javier has an interest only loan for $135,000.00 maturing in 10 years. The interest rate on...
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Javier has an interest only loan for $135,000.00 maturing in 10 years. The interest rate on the loan is 4.500% compounded semi-annually. He will repay the loan by making quarterly interest only payments, and by also making quarterly deposits of $2,797.26 into a sinking fund paying r(4) = 3.750%. If he defaults just after making 14 loan payments, and the lender gets the balance in the sinking fund, how much money does the lender lose? a. $75,621.70. b. $96,160.93. c. $88,692.12. d. $97,094.53. e. $93,360.13. Javier has an interest only loan for $135,000.00 maturing in 10 years. The interest rate on the loan is 4.500% compounded semi-annually. He will repay the loan by making quarterly interest only payments, and by also making quarterly deposits of $2,797.26 into a sinking fund paying r(4) = 3.750%. If he defaults just after making 14 loan payments, and the lender gets the balance in the sinking fund, how much money does the lender lose? a. $75,621.70. b. $96,160.93. c. $88,692.12. d. $97,094.53. e. $93,360.13.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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