Marcus can afford a monthly mortgage payment of $900. if he is eligible for a 30-year, 5% mortgage (where the mortgage factor is
1 answer:
Answer: Marcus can afford a loan of $167,597.76.
The mortgage factor tells us the monthly principal and interest rate payable for each $1000 of a loan.
Since we know the mortgage factor and the amount Marcus can make each month, we can determine the number of $1000 in his loan amount.
We do this by
This means that Marcus' loan will have 167.5977654 thousands.
Therefore we can find the amount of mortgage loan as
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Answer:
4.09%
Explanation:
For computing the after cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,919
Future value or Face value = $2,000
PMT = 2,000 × 6.3% ÷ 2 = $63
NPER = 17 years × 2 = 34 years
The formula is shown below:
= Rate(NPER,PMT,-PV,FV,type)
The present value come in negative
So, after applying the above formula,
1. The pretax cost of debt is 3.35% × 2 = 6.70%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.70% × ( 1 - 0.39)
= 4.09%
