Question: Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000. Mortgage A has a 4.38% interest rate and

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000.

Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.

Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Anns annualized IRR from mortgage A?

please also include how to do it on a financial calc (BA II Plus) and not just on excel.. thank you!

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!

Q:

10. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $3,200,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B...

Q:

1. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000 Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B...

Q:

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000 Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has...

Q:

really hard. i need help thanks you very much! Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000 Mortgage A has a 4.38% interest rate and requires...

Q:

Ann is looking for a fully amortizing 3 0 year Fixed Rate Mortgage with monthly payments for $ 4 , 5 0 0 , 0 0 0 . Mortgage A has a 4 . 3 8 % interest rate and requires Ann to pay 1 . 5 points...

Q:

12. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $3,200,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B...

Q:

rates o.ose/i2 V uo 10. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000 Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points...

Q:

13. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000 Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B...

Q:

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has...

Q:

1. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B...

Q:

You turn on the news and find out the stock market has gone up 7%. Based on the data in the table here, by how much do you expect each of the following stocks to have gone up or down: (1) Starbucks,...

Q:

Find the interval [ z / n + z / n] within which 90 percent of the sample means would be expected to fall, assuming that each sample is from a normal population. a. = 100, = 12, n = 36 b. =...

Q:

the threshold limit for TDS deduction under GST for government department supply is _ _ _ _ a . rs . 1 lakh b . rs . 2 . 5 lakh c . rs . 1 0 lak d . no threshold limit

Q:

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Q:

3 What specific practices, such as autonomous and cross-functional teams, and principles, such as empowerment, are best suited to which cultural contexts? How are these practices (with their...

Q:

2 DECs experience with implementing cross-border project groups suggests conflicts with the concerns of local operations. How could this conflict best be resolved?

Q:

3 How successful would BPs principles and practices of the learning organization be in your country?