Question: A borrower just obtained a 10-year fixed-rate negative amortizing mortgage loan from a bank with the original loan amount of $300,000 and the annual interest

A borrower just obtained a 10-year fixed-rate negative amortizing mortgage loan from a bank with the original loan amount of $300,000 and the annual interest rate of 6%. The bank allows the borrower to only pay $1,200 per month. What's loan balance at its maturity? A. $349,163.80 B. $401,819.02 C. $393,254.31 D. $156,000.00 E. No answer within +1$100.00 of the correct one

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!

Hortonville has a new grocery store. Gilbert's Sentry, a new $3 million, 20,000-square-foot store is actually a relocation of a store (Gilbert's SuperValu Foods) previously located on Black Otter...

A borrower just obtained a 10-year fixed-rate negative amortizing mortgage loan from a bank with the original loan amount of $200,000 and the annual interest rate of 8%. The bank allows the borrower...

QUESTION 3 [14 marks] Bill has bought a new home in Canberra. He borrowed $600 000 at a 12 rate given as 150 basis points over the Australian 10-year government bond yield for 2018. The loan is to be...

Please answer using Excel in the exact format given below Mixed Use Project FIRE 305, Principles of Real Estate, Fall 2018 Tenant Assumptions Assumptions Tenant Remaining Lease Term Gross Leasable...

Mike PVC is an electronic manufacturer, start the business in the year of 2010. The following trial balance was extracted from the books of accounts of Mike PVC as at 31 st December 2020. Dr. Cr. $....

1) Jim makes a deposit of $12,000 in a bank account. The deposit is to earn interest compounded annually at the rate of 6 percent for seven years. How much will Jim have on deposit at the end of...

24 QUESTIONS IN TOTAL. CORPORATE FINANCE FROM WHARTON-UPEN, COURSERA 3 Problem 1. Amortizing Bond Assume that a bond makes 30 equal annual payments of$1,000starting one year from today. (This...

PLEASE ENTER ANSWERS IN BLUE BOLD INK! Ann wants a mortgage to buy a house. Ann gives the following information to the bank: Income: $240k/year or 20k/month Average monthly debt: $2k Estimated...

Need to complete 10 homework but now i need 5 homework then after some time 5 homework more. Here it is attachment. Chapter 5 HW Questions [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck...

QUESTION 8 Tom got a 30 year fully amortizing FRM for $1,500,000 at 6%, with constant monthly payments. After 3 years of payments, rates fall and he can get a 27 year FRM 5% but he must pay 2 points...

C++ ASSIGNMENT 2-MORTGAGE AMORTIZATION TABLE This assignment is to use your knowledge of Chap 1-5 to generate the following amortization table in a file given user's input of loan amount, annual...

The 40-lb block is moving downward with a speed of 3 ft/s at t = 0 when constant forces P and 2P are applied through the ropes. Knowing that the block is moving upward with a speed of 2 ft/s when t =...

A ski that is placed on snow will stick to the snow. However, when the ski is moved along the snow, the rubbing warms and partially melts the snow, reducing the coefficient of kinetic friction and...

What is the future value of a 5 - year ordinary annuity with annual payments of $ 2 0 0 , evaluated at a 1 5 % interest rate? FV = PMT ( 1 + i ) n 1 i Group of answer choices $ 6 7 0 . 4 4 $ 8 4 2 ....

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".