D Use the following information to answer the next three questions: You purchase a house...
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D Use the following information to answer the next three questions: You purchase a house for $958,000 financed via a 95% LTV asset integrated mortgage (AIM) amortized over 30 years (monthly payments) at 3.35%. This loan also requires that a 15% LTV investment be made in a pledged annuity earning 4.2% compounded monthly. You hold the loan for exactly 12 years before paying it off. Question 19 3 pts Compute the outstanding balance on the AIM at the end of the holding period. $547,323.97 $593,265.41 $649,947.21 $673.734.99 $684,154.96 Question 20 3 pts Compute the value of the annuity at the end of the holding period. O $214,684.11 O $225,778.53 O $237,661.61 $246,119.84 $262,548.62 D Question 21 3 pts If the AIM charges a 1% origination fee, and the annuity charges a one-time upfront setup fee of 0.25%, what is the effective rate on this lending arrangement? O 1.1204% O 1.5243% 2.7426% O 3.2514% 3.6411%
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