Kate is applying to USA home loans for a mortgage of $200,000. The company is quoting 10.07% interest per annum. Kate would like to have a 25year amortization period and wants to make a monthly payment.
What will Kate’s payments be per month?
c) Exim Financial Services granted a loan of $22,000 to its client at 22% compound annual interest to be repaid over the next six (6)years. As a financial adviser to the client you are required to compute the size of the yearly payments.
d) A project costs $910,000 today and offers one million fifty thousand dollars cash flow in 72 months. It has a beta of 95 out of 100 and the risk premium on the market is 7.3%. if the treasury bill rate is 9%, should the project be accepted? Give reason.