Holding period Loan $90.000 $80.000 $10.000 #6 Points 25 2,00% 0,00% Chapter 6 Incremental Cost Loan Proceeds Rate $88.200 $80.000 $8.200 7,00% 6,00% Term* 30 30 30 Payment 598,77 479,64 119,13 Balance $30.239,19 $24.809,67 5.429,52 Incremental Cost *Should be the same term for both loans For #6, calculate the incremental cost of financing a higher amount, after you have taken into consideration the points.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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D6) Please answer question with formula so I can fill it in the cell in Excel. Thank you.
Chapter 6
Incremental Cost
Holding period
25
Loan
Points
Loan Proceeds
Rate
Term*
Payment
Balance
$88.200
$30.239,19
$24.809,67
$90.000
2,00%
7,00%
30
598,77
$80.000
$10.000
$80.000
$8.200
0,00%
6,00%
30
479,64
30
119,13
5.429,52
: #6
Incremental Cost
*Should bethe same term for both loans
For #6, calculate the incremental cost of financing a higher amount, after you have taken into consideration the points.
Transcribed Image Text:Chapter 6 Incremental Cost Holding period 25 Loan Points Loan Proceeds Rate Term* Payment Balance $88.200 $30.239,19 $24.809,67 $90.000 2,00% 7,00% 30 598,77 $80.000 $10.000 $80.000 $8.200 0,00% 6,00% 30 479,64 30 119,13 5.429,52 : #6 Incremental Cost *Should bethe same term for both loans For #6, calculate the incremental cost of financing a higher amount, after you have taken into consideration the points.
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