An off-balance-sheet asset is an item that moves onto the asset side of the balance sheet when a contingent event occurs or at t
1 answer:
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Answer:
28.3%
Explanation:
The formula to calculate the final amount for compound interest is:
where
A is the final amount
P is the principal
r is the rate of return
n is the number of times the interest is compound in a time t
t is the time
Here we have:
P = $12,000 is the principal
A = $87,881 is the final amount
t = 8 y is the time (8 years)
n = 1 , since interest is compounded every year
Therefore, solving for r, we find the rate of return:
Answer:
1003
Explanation:
Given:
Period= 30 years, Loan amount= $200,000,
Payments- Monthly,
Teaser rate for first 2 years = 4%,
Annual payment cap=5%, Composite rate on reset date= 6%
Annual rate for 2 years =4%
Monthly rate will be 4/12 = 0.3333% = 0.003333
n=30years=360 months
Monthly payment for first 2 years =
=
= 954.83
or by Excel function = PMT(0.003333,360,200000,0) = 954.83
Loan balance after 2 years = PV(0.003333,336,-954.83,0) = 192,812.36 or
Balance=
=
= 192,812.36
Composite rate is 6% but payment is capped at 5%. So new payment from year 3 is 954.83×1.05=1002.57=1003