Question: PROBLEM # 2 You just took a $315,000, 30-year loan. Payments at the end of each month are flat (equal in every month) at an

PROBLEM # 2You just took a $315,000, 30-year loan. Payments at the end of each month are flat (equal in every month) at

PROBLEM # 2

You just took a $315,000, 30-year loan. Payments at the end of each month are flat (equal in every month) at an annual interest rate of 3.75 percent.
a)Calculate the monthly payment.
b)Provide the appropriate loan table, showing the breakdown in each month between principal repayment and interest.

an annual interest rate of 3.75 percent.a)Calculate the monthly payment.b)Provide the appropriate

loan table, showing the breakdown in each month between principal repayment and

Principal Years Compoundings Periods Interest Rate Periodic Rate (a) Monthly Payment (h) Month Monthly Payment Interest Expense Principal repayment Balance Remaining Years Compoundings Periods Interest Rate Periodic Rate Quarter Initial Investment 10 11 12 13 14 15 16 17 Cash flows Payback Discounted CF Discounted PB ( a ) IRR (b ) NPV ( C ) PI ( d ) NPI ( e ) Should you purchase it ? Why ?" ( 7 ) Compared to the alternative project , is this a more attractive opportunity ? Why

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