Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suppose a borrower with two mortgages defaults. at

Suppose a borrower with two mortgages defaults. At the time of the default, the first...

70.2K

Verified Solution

Question

Accounting

image
Suppose a borrower with two mortgages defaults. At the time of the default, the first lien has a balance of $200,000, the second lien has a balance of $50,000. The borrower owes $5,000 in property taxes. The house sells for $150,000 in a foreclosure auction. How much of a deficiency will the first lien lender have? 5. Suppose you deposit $50,000 once at an annual interest rate of r-2.40% compounded monthly. How much will you have in 30 years? 6. Suppose you save $500 everyweeklianotoncel to your bank account. The bank pays you 3% compounded y to the same account. How much money will you have in your bank account in 35 years? (Note: there are 52 weeks in a year) 7. Suppose you buy a 30 year zero coupon bond with a face value of S1000 and a 4% annual interest rate compounded semi-annually. The moment after you buythe bond, the interest rate falls to 3%, compounded semi- annually, What is the percent change in the bond price? A bank offers a 30 year annuity, with monthly payments of $2,000 starting 1 year from today. If the annual discount rate is 5%, compounded monthly, how much should this annuity cost today? 8

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students