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spazzinchicago
25.04.2020 •
Mathematics
You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will pay $2,500
at the end of Year 1, $5,000 at the end of Year 2, and $7,500 at the end of Year 3, plus a fixed but
currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. Breck is
essentially riskless, so you are confident the payments will be made. You regard 8% as an appropriate
rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the
end of each of the final 4 years, that is, what is X?
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Ответ:
Total cost of All fee = $10,000
Step-by-step explanation:
Given:
Mortgage amount = $400,000
Origination fee = 0.2%
Intangible tax = 0.4%
Discount point = 1.9
Find:
Total cost of All fee
Computation:
Total cost of All fee = (Mortgage amount)(Origination fee) + (Mortgage amount )(Intangible tax) + (Mortgage amount )(Discount point)
Total cost of All fee = ($400,000)(0.2%) + ($400,000)(0.4%) + ($400,000)(1.9/100)
Total cost of All fee = $800 + $1,600 + $7,600
Total cost of All fee = $10,000