Suppose the index goes to 18 percent in year 5. What is the effective cost of this
Question:
Suppose the index goes to 18 percent in year 5. What is the effective cost of this ARM? What cap affected the rate in year 5?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
The effective cost increase ...View the full answer
Answered By
Diksha Bhasin
I have been taking online teaching classes from past 5 years, i.e.2013-2019 for students from classes 1st-10th. I also take online and home tuitions for classes 11th and 12th for subjects – Business Studies and Economics from past 3 years, i.e. from 2016-2019. I am eligible for tutoring Commerce graduates and post graduates. I am a responsible for staying in contact with my students and maintaining a high passing rate.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Question Posted:
Students also viewed these Business questions
-
Suppose housing prices rise at a 5 percent annual rate over the next five years. If a house now costs $100,000, how much will it bring after five years and the payment of a 6 percent sales commission?
-
Suppose the expected inflation rate is 4 percent this year and the nominal interest rate is 8 percent. Assuming that a taxpayer is subject to a 28 percent MTR, show how an increase in the rate of...
-
Suppose 90- day investments in Europe have a 5 percent annualized return and a 1.25 percent quarterly (90- day) return. In the United States, 90- day investments of similar risk have a 7 percent...
-
Determine the maximum weight of the crate so that the tension developed in any cable does not exceed 450lb. 2 ft 1ft 2 f 2 ft,
-
Give examples of how management accounting information could assist in managing resources the Australian Football League.
-
Desiree Clark is a licensed CPA. During the fi rst month of operations of her business, the following events and transactions occurred. May 1 Clark invested $20,000 cash in her business. 2 Hired a...
-
In what ways can insights from anthropology be useful in understanding and controlling COVID-19 and similar epidemics in the future? In the United States, the effects of COVID-19 exposed racial and...
-
Donna Tse has recently accepted the position of assistant manager at Cycle World, a bicycle store in St. Louis. She has just finished her accounting courses. Cycle Worlds manager and owner, Jeff...
-
Question 3 of 3 < 4/16 !!! Oriole Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows....
-
The triplets are now three and a half years old, and Jamie Lee and Ross, both 38, are finally beginning to settle down in to a regular routine now that their children are a little more...
-
If an ARM is priced with an initial interest rate of 8 percent and a margin of 2 percent (when the ARM index is also 8 percent at origination) and a fixed rate mortgage (FRM) with constant payment is...
-
Suppose the index goes to 18 percent in year 5. What is the effective cost of the ARM? Does the payment cap keep the effective cost from rising?
-
Two pink slime producers, XL and IPSP, are located in an otherwise pastoral mountain town. Each producer emits 30 tons of ammonium hydroxide into the atmosphere each year. City planners wish to cut...
-
throughly explain the difference between traditional files and Database focusing on normalization.
-
Clarence Conrad Bolton was in his early 90s in December 1989 when conservatorship proceedings were commenced in which Joyce Van Buren sought to be appointed his guardian and conservator. While the...
-
Discuss your thoughts on this debate. Do you believe there is preemption in this field or do you believe the states have a right to create their own regulation of the area?...
-
What background information about the person's behavior would be relevant to you as you devise a strategy for their reentry into society? What resources would you provide the client to empower them...
-
At the end of this year, Long Light Corporation announced a gross profit of $1100000. The company has also established that over the course of this year that it has incurred $355000 in operating...
-
Mr. Erwins marginal tax rate on ordinary income is 37 percent. His $958,000 AGI included a $24,900 net long-term capital gain and $37,600 business income from a passive activity. a. Compute Mr....
-
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
-
What is a capitalization rate? What are the different ways of arriving at an overall rate to use for an appraisal?
-
If investors buy properties based on expected future benefits, what is the rationale for appraising a property without making any income or resale price projections?
-
What is meant by depreciation for the cost approach?
-
a. Suppose the spherical shell is made of material with a constant conductivity = 3.3 x 104 (22.m). Find the value of the resistance. R = abc a sin(x) x10 Submit Reset All Reset Divide the resistor...
-
1*. Consider the following vector fields: = 2xyzj + xyk = y + x + f (z)k where f(2) is an arbitrary function of z E = osin 0 + cos 00 + Determine which ones could be electrostatic fields and...
-
2. (10 points) The diagram below shows a region of space that has a uniform electric field in the +x direction, as shown by the arrows. The magnitude of the E-field is +30N/C everywhere. The value of...
Study smarter with the SolutionInn App