Question: 48. A borrower makes a fully amortizing $100,000 loan at 3 percent for 30 years. The borrower is considering paying off the loan after 15

48. A borrower makes a fully amortizing $100,000 loan at 3 percent for 30 years. The borrower is considering paying off the loan after 15 years. How much is the borrower saving in interests by paying off the loan earlier?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Katie Scarlett is analyzing the 15-unit apartment building for a client for possible purchase. She expanded her analysis from just the DCF (Income) to include the Direct Cap (Income), the Cost and...

A borrower makes a fully amortizing $1,000,000 loan at 2.5% for 30 years. The borrower is considering paying off the loan after 15 years. How much is the borrower saving in interests by paying off...

An investor has $60,000 to invest in a $280,000 property. He can obtain either a $220, 000 loan at 9.5 percent for 30 years or a $180,000 loan at 9 percent for 30 years and a second mortgage for...

Early Loan Payoffs Should a borrower pay off a loan early, or prior to maturity. Problem #3 A borrower makes a fully amortizing loan for $80,000 at 6 percent interest for 30 years. Monthly payments...

A borrower makes a fully amortizing $200,000 loan at 3 percent for 30 years with monthly payments of $843.21. The borrower is considering paying off the loan after 15 years. The loan balance after 15...

Chapter 4 1. Why do the monthly payments in the beginning months of a CPM loan contain higher proportion of interest than principal repayment? 2. Why do lenders charge origination fees and loan...

Chapter 4 Problems 1. A borrower obtains a fully amortizing loan for $1,175,000 at 5.75% interest for 20 years. What will be the monthly payment on the loan? If this loan had a maturity of 25 years,...

1. Choose a car (new or used) that you would like to purchase. Be sure to think about the type of car that you would realistically consider purchasing in the next couple of years (not your ultimate...

Real Estate Finance homework. Attached is a file for my homework. The questions must be answered in EXCEL and formulas must be used for the answers. Real Estate Finance Business 422 Please use use...

An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 11%...

Course: CRE 4301 Real Estate Finance Module 2 Homework Questions __________________________________________________________________________ Part 1: Fixed Rate Mortgage...

Why might a very capable employee have low expectancy for performing at a high level?

Which of the following statements holds true for the term, accomplishment promotions? Select one: a. It refers to the elevations scheduled for workers attaining specific, predetermined goals. b. It...

Ratios to Compute: Incenar Statement Seles dsovens, ellievanets, and retims as a pernetigge of Soles Gross Profit ( Margin ) Rercentage Operating Profir ( Margia ) Perocetage Ned Profit Margin...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...