Essay on Devry Busn 379 Case Studty 4 - Latest

845 Words Jan 13th, 2016 4 Pages
DeVry BUSN 379 Case Studty 4 - Latest
IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=devry-busn-379-case-studty-4-latest IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM
DeVry BUSN 379 Case Studty 4 - Latest

CASE 4
Case
Case II is due at the end of this week. For this assignment, prepare a memo in Word, which answers the questions in the Chapter 5 case, S & S Air's Mortgage, on page 165 of the textbook. Use Excel to do any financial calculations. You will be graded on correct financial analysis, proper use of technology, and business-like presentation.

Park Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work
…show more content…
Christie informs him that the bank does have smart loans. The APR of the smart loan would be the same as the APR of the traditional loan. Mark nods his head. He then states this is the best mortgage option available to the company since it saves interest payments.
Christie agrees with Mark, but then suggests that a bullet loan, or balloon payment, would result in the greatest interest savings. At Todd’s prompting, she goes on to explain a bullet loan. The monthly payments of a bullet loan would be calculated using a 30-year traditional mortgage. In this case, there would be a 5-year bullet. This would mean that the company would make the mortgage payments for the traditional 30-year mortgage for the first five years, but immediately after the company makes the 60th payment, the bullet payment would be due. The bullet payment is the remaining principal of the loan. Chris then asks how the bullet payment is calculated. Christie tells him that the remaining principal can be calculated using an amortization table, but it is also the present value of the remaining 25 years of mortgage payments for the 30-year mortgage.
Todd has also heard of an interest-only loan and asks if this loan is available and what the terms would be. Christie says that the bank offers an interest-only loan with a term of 10 years and an APR of 3.5 percent. She goes on to further explain the terms. The company would be responsible for making interest

Related Documents