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# Finance Homework help?

Topic: Finance homework help
June 17, 2019 / By Clive
Question: Any help is greatly appreciated. There are 3 questions that I did not from the homework problems, and I would like to see them to help me study. Thank you in advance. Obtain the principal amount repaid during the last ten years of a \$52,000 mortgage when n=25 and k=14% a. \$40,311.86 b. \$40,314.86 c. \$40,317.86 d. \$40,320.86 determine the amount of interest expense on a 25 year mortgage of \$52,000 with an interest rate of 14% assuming monthly compounding associated with the last payment a. 7.22 b. 7.24 c. 7.26 d. none of the above what is the effective yield on a 25 year fixed rate mortgage if 20 points are charged and the nominal interest rate is 14%? use the approximation formula a. 17.2 b. 17.8 c. 18.8 d. none of the above

## Best Answers: Finance Homework help?

Anson | 3 days ago
1. Take a financial calculator, set up with 4 decimals and put: PV: 52,000 N:300 I/Y: 14 PMT: 625.9557 Then 2nd - amort - P1=181 P2=300 (last 10 years) PRN=40,314.8553 2. PV: 52,000 N:300 I/Y: 14 PMT: 625.9557 Then 2nd - amort - P1=300 P2=300 (last payment) INT=7.2199 3. discount = 0.20 i=k/m=0.14/12=0.011667 r= (2i + d / mn) / 2 (1 - d) r= (0.023333 + 0.200000 / 300) / 2 * 0.800000 r= 0.024000 / 1.600000 r= 0.015000 r= 1.500000 * 12 r= 18.000000 = none of the above Hope it can help you. :)
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