Consider a 7-year balloon loan for $120,000 where a monthly payment is equal to that of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a 7-year balloon loan for $120,000 where a monthly payment is equal to that of a 20-year fixed-rate loan with a nominal annual rate of 7.2% How much will the borrower owe when the balloon payment is due (round to the nearest dollar)? OA $109,331 OB. $96,045 OC $108,915 OD. $95,028 OE $95,538 OF. $109,713 OG.S110,148 OH.$95,064 Consider a 7-year balloon loan for $120,000 where a monthly payment is equal to that of a 20-year fixed-rate loan with a nominal annual rate of 7.2% How much will the borrower owe when the balloon payment is due (round to the nearest dollar)? OA $109,331 OB. $96,045 OC $108,915 OD. $95,028 OE $95,538 OF. $109,713 OG.S110,148 OH.$95,064
Expert Answer:
Answer rating: 100% (QA)
We will first find the monthly payment for this loan payment The monthly payment ... View the full answer
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
Posted Date:
Students also viewed these accounting questions
-
The negative muon has a charge equal to that of an electron but a mass that is 207 times as great. Consider hydrogen like atom consisting of a proton and a muon. (a) What is the reduced mass of the...
-
The mass of the neutrino is a. equal to that of the neutron b. equal to that of the electron c. equal to that of a quark d. very small
-
Fish blood has an osmotic pressure equal to that of seawater. If seawater freezes at 2.3C, what is the osmotic pressure of the blood at 25C? To solve this problem, what assumptions must be made?
-
Using java language and data structure In chapter 1 you learned how to merge two sorted lists and get a third list which is also sorted. Write a method named mergeUnsortedLists in an application,...
-
Sow Tire, Inc., has sales of $1,450,000 and cost of goods sold of $980,000. The firm had a beginning inventory of $97,000 and an ending inventory of $82,000. What is the length of the days sales in...
-
When the minimum wage rates established by the federal, state, and city are not the same, the manager is required to pay the a. City rate. b. Federal rate. c. Lowest of the three rates. d. Highest of...
-
Following is an audit working paper that documents an auditor's work for Sempier & Fiske, Inc.'s accrued property taxes payable for the year ended December 31, 1999. Sempier & Fiske is a first year...
-
A distillation unit consists of a partial reboiler, a column with seven equilibrium plates, and a total condenser. The feed consists of a 50 mol% mixture of benzene in toluene. It is desired to...
-
Chandler participates in a defined contribution pension plan (DCPP) offered by his employer. The plan requires that both the employer and employee each make contributions of 6% of pensionable...
-
What are your opinions on this cry closet and on college students' overall workload and responsibilities? Should colleges be addressing the stress students feel more often and/or in a better way? In...
-
If Patty Shoemaker estimates that her $400 weekly grocery bill will increase at an annual inflation rate of 3%, what should her weekly grocery bill be in 2 years?
-
What is Government Procurement Reform Act (RA 9184) and what does it entail? What is the role of a civil engineer in the procurement or bidding? Why is the Government Procurement Reform Act (RA 9184)...
-
what is the relevance of great books to civil engineers?
-
What innovation in your field of specialization will be beneficial to us Filipinos and in our present conditions? (Advances in your field as civil engineer) 2. Why it is relevant or beneficial?...
-
what is your goal as a professional civil engineer?
-
What are the duties of Civil Engineer as an experimenter, in environmental ethics?
-
Develop a Java GUI program that will calculate tax for an employee ID and stores the tax information in a table called "TaxResult" of a MySQL database called "TaxManagementSystem". The fields of the...
-
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...
-
From the previous question, rates do indeed fall as expected, and the T-bond contract is priced at 103 5/32. If Springer closes its futures position, what is the gain or loss? How well does this...
-
A $1,000 par bond with an annual coupon has only one year until maturity. Its current yield is 6.713%, and its yield to maturity is 10%. What is the price of the bond?
-
The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the expectations theory, what will be the interest rates on a three-year...
-
Describe circumstances that might cause a client to understate assets such as cash and financial investments.
-
What prevents the person who opens incoming mail from being able to abstract cash collections from customers?
-
Select the best answer for each of the following situations and give reasons for your choice. a. You have been assigned to the year-end audit of a financial institution and are planning the timing of...
Study smarter with the SolutionInn App