A bank offers the following tax loan, what is the APR? Loan amount $100,000;12 monthly equal-amount...

 

Transcribed Image Text:

A bank offers the following tax loan, what is the APR? Loan amount $100,000;12 monthly equal-amount installments of $8,471 each. b)lf the client will get a cash rebate of $1,000 at the time of drawdown, what is the APR? 2 a)What is the monthly installment amount of the following mortgage loan? Property value: $5,000,000, Loan amount: 60% of the property value Interest rate: 1M HIBOR +1.5%, the current HIBOR is 1% Tenor (repayment period): 20 years b) if a client only affords a monthly installment of $30,000, what is the maximum property value s/he can afford? (Ignore the down payment and other costs) A bank offers the following tax loan, what is the APR? Loan amount $100,000;12 monthly equal-amount installments of $8,471 each. b)lf the client will get a cash rebate of $1,000 at the time of drawdown, what is the APR? 2 a)What is the monthly installment amount of the following mortgage loan? Property value: $5,000,000, Loan amount: 60% of the property value Interest rate: 1M HIBOR +1.5%, the current HIBOR is 1% Tenor (repayment period): 20 years b) if a client only affords a monthly installment of $30,000, what is the maximum property value s/he can afford? (Ignore the down payment and other costs)

Answer rating: 100% (QA)

SOLUTION a To calculate the APR of the loan we can use the following formula APR 1 r nn 1 x 100 where r is the nominal interest rate and n is the numb... View the full answer