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.
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
Section: Chapter Questions
Problem 1PS
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