Suppose you are a lender being asked to supply a mortgage loan with monthly payments of $1,500

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Suppose you are a lender being asked to supply a mortgage loan with monthly payments of $1,500 for 30 years or 360 months. Suppose also, that you currently receive interest on loans of similar risk at 6 percent or 0.5 percent per month.

N	I	PV	PMT	FV
360	0.5	?	(-)1500	0

PV=?

1) What payment would you require on this loan?

Related Book For answer-question

Quantitative Methods for Business

ISBN: 978-0840062345

12th edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

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Posted Date: Mar 06, 2023 01:16 AM

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Suppose you are a lender being asked to supply a mortgage loan with monthly payments of $1,500

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Expert Answer:

To determine the loan amount we can use the present value formula PV PMT 1 1 rn r where PV is the ... View the full answer

Quantitative Methods for Business

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