solution

You are considering two separate investments. One has annual cash flows and yields 12% return on your investment. What would be the equivalent annual yield (EAY) of a monthly investment that would accumulate the same amount of cash as the 12% annual yielding investment?

Group of answer choices

11.28%

11.39%

11.42%

11.50%

You are purchasing a property for $250,000 and can choose between two loans. One is a 90% loan for 25 years at 3.85% or the second choice is a 95% loan for 25 years at 4.25%. What is the incremental cost of borrowing the extra money?

Group of answer choices

10.46%

10.63%

10.51%

10.78%

10.78%

A loan was made 15 years ago for $1,200,000 at 8% for a 25 year term. Rates are currently 6%. What is the market value of the loan assuming an annual basis?

Group of answer choices

$72,856.91

$73,461.33

$74,202.84

$73,070.05