Question: can you answer 2a to 2e? it is a real estate question 1 Ann got a 10 year Fixed Rate Mortgage for $100,000. The loan
1 Ann got a 10 year Fixed Rate Mortgage for $100,000. The loan has constant annual payments and an annual interest rate of 5%. There are no closing costs. Suppose Ann prepays the loan in year 4. Write the NPV of Ann's Mortgage (from Ann's perspective) for an annual discount rate " k " cases. Note: the answer must take the form NPV(k)=CF0+(1+k)1CF1+(1+k)2CF2+(1+k)3CF3+(1+k)4CF4 Note: only include one cash-flow for each time period 1b Partially Amortizing where the final balance is B10=$50,000 1d Negatively Amortizing where the payment is PMT=$1,000 le Negatively Amortizing where the payment is PMT=$0 2 Compute the IRR for each loan above 2a 2b 2c 2d 2e 1 Ann got a 10 year Fixed Rate Mortgage for $100,000. The loan has constant annual payments and an annual interest rate of 5%. There are no closing costs. Suppose Ann prepays the loan in year 4. Write the NPV of Ann's Mortgage (from Ann's perspective) for an annual discount rate " k " cases. Note: the answer must take the form NPV(k)=CF0+(1+k)1CF1+(1+k)2CF2+(1+k)3CF3+(1+k)4CF4 Note: only include one cash-flow for each time period 1b Partially Amortizing where the final balance is B10=$50,000 1d Negatively Amortizing where the payment is PMT=$1,000 le Negatively Amortizing where the payment is PMT=$0 2 Compute the IRR for each loan above 2a 2b 2c 2d 2e
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