- You Can Use Financial Calculator Excel To Get The Cf And Irr For Each Period 1 Ann Got A 10 Year Fixed Rate Mortgage F 1 (104.24 KiB) Viewed 106 times
You can use financial calculator/Excel to get the CF and IRR for each period. 1) Ann got a 10 year Fixed Rate Mortgage for $100,000. The loan has constant annual payments and an annual interest rate of 5%. There are no closing costs. Suppose Ann prepays the loan in year 4. Write the NPV of Ann's Mortgage (from Ann's perspective) for an annual discount rate "k" in each of the following cases. Note: the answer must take the form NPV (k) = CF CF2 CF3 CF4 CF. + + + (1+k)1 (1+k) (1+k)3 (1+k) Note: only include one cash-flow for each time period + 1a Fully Amortizing 1b Partially Amortizing where the final balance is B10 = $50,000 1c Interest Only 1d Negatively Amortizing where the payment is PMT = $1,000 1e Negatively Amortizing where the payment is PMT = $0 2 Compute the IRR for each loan above 2a 2b 2c 2d 2e