Assignment 05 Gaddam

8/18/2019 Assignment 05 Gaddam

1/16

Question 1

Evaluate plan C and select best financing method

Total amount 150000

Down payment 5%

Remaining amount 142500

oigin fee 1%

appaisal

suvey

attoney fee

pocessing

escow

othe

Total

!he loan amount is 142"500# !he monthly and inteest payment is calculated below

$mount 142500

nteest ate 2%

!em 15

PMT

$fte $dding ta' and insuance to ()!

!a' and insuance *00

()! 14++#02

Total Pmt 1,++#02

$vailable fund 1-00

1++#02

$mount 142500

Rate 2%!em 10

(ayment

!otal .,0"+51#+-

/utue value of plan .&1"-,*#,2


2/16

,500

1425

*00

200

200

*50

150

*00

10"425

Column1 Column2

0#00,&1----, /und

1+0 pfont fees

.1"4++#02 !otal

$mount

Rate

!em

(ayment

!otal

deficit3

(oceeds fom house

)onthly

0#,&%120

14++#02(oceeds fom ale

egative amount e6d fo ()!


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nd) 5240 Engineeing Economy

Assignment 05

ai Ram Reddy 7addam

nivesity of Cental )issoui

Column*

40000

10425

2&5,5

2&5,5

0#25%

120

1++#02Deficit3

.1*"-*2#&5 egative3

.1,0"000

.,0"+51#+-

.&&"14+#14

.&&"14+#14

.1*"-*2#&5

/8 of (lan C .+5"515#1&


4/16

Question 2

8hat is the total amount of inteest paid in plan $ though the 10 yea peiod

ew :oan $mount .142"500#00

nteest 10%

!em *0

/o 10 yea peiod

:oan $mount .142"500#00

Rate 10%

!em 10

(ayment

:oan amount .*+5",5*#41

()! amount .25-"1--#,*


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)onthly

0#+*%

*-0

)onthly

0#+*%

120

.1"250#54


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loan amount

:oan balance emaining

!otal

!otal amount paid

(incipal paid

!otal

nteest (aid in 10 yeas


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Question 3

8hat is the total amount of inteest paid in plan thoug

;eas 1


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nteest fo yea 4

!otal nteest paid


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yea 49

.1+-"4+1#&,

)onthly .4,"1+5#1+

.1*&"2&-#,&

0#,5%

*-0

.1"14-#5& :oan amount

()! amount

!otal (incipal emaining3

0#,5%

*-

.142"500#00

.1*&"2&-#,&

.*"20*#21

.41"2,,#14

.*"20*#21 .15*"121#--

.*+"0,*#&* .14"&+-

.1*+"1*2#10

)onthly

*24 :oan amount

0#,&% ()! amount

.1"1&5#-, !otal (incipal emaining3

12

.1*&"2&-#,&

.1*+"1*2#10

.1"1-4#-&

.14"*4+#04

.1"1-4#-&

.1*"1+*#*5

.*+"0,*#&*


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.1*"1+*#*5

.51"25,#2+


11/16

Question 4

8hat is the ma'imum amount of money availabale fo down payment unde plan $" if .40000

!otal amount of house

!otal amount available

$ppasial

uvey

$ttoneys /ees

(ocesing

Escow

=the

!otal

!ot available

:oan e'penses

diffeence

:oan amount .150"000#00

ew loan amount .112"-2-#2-

=igination fee 1% of new loan amount3

$fte subacting the oigin fee fom the available amount deducting loan e'penses we can find the tota

$vailable *+500

oigin fee 112-#2-

Diffeence *,*,*#,4


12/16

150"000

40"000

.*00

.200

.200

.*50

.150

.*00

.1"500

40000

1500

*+500

Down payment .*,"*,*#,4

.1"12-#2-

=the e'penses .1"500#00

!otal .40"000#00

money available fo down payment


13/16

Question 5

y how much does the payment incease in plan $ fo each 1% incease in the inteest ate9

$mount 142500

o# of yeas *0

nceasing ate Rate in months o# of months (mt amount

10% 0#+*% *-0 .1"250#54

11% 0#&2% *-0 .1"*5,#0-

12% 1#00% *-0 .1"4-5#,,

1*% 1#0+% *-0 .1"5,-#**

14% 1#1,% *-0 .1"-++#44

15% 1#25% *-0 .1"+01#+*

1-% 1#**% *-0 .1"&1-#2+

1,% 1#42% *-0 .2"0*1#5&

1+% 1#50% *-0 .2"14,#-0

1&% 1#5+% *-0 .2"2-4#1,

20% 1#-,% *-0 .2"*+1#20


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Question 6 f you want to >buy down> the inteest ate

$mount 142500

10%

*0

()!

/o &%

$mount 142500

&%

*0

()!

Diffeence between 10% and &% ()! amount @

o e'ta amount fo the down payment can be calculated by finding the pesent value of the

()! diff 10*#&5

Rate 10%

tem *0

E'ta Down (ayment


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om 10% to &% in plan $" how much e'ta down payment would you have to ma?e9

0#00+*******

*-0

.1"250#54

0#00,5

*-0

.1"14-#5&

.10*#&5

iffeence amount

0#00+*******

*-0

.11"+45#1&

Assignment 05 Gaddam

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