Direct Income Capitalisation Model Assignment

Direct Income Capitalisation Model

A lender has retained the right to service a mortgage loan whose balance is $100,000 and whose monthly payment is $678. If the lender charges an annual service fee of 0.36%, how much will the lender forward to the debt- security investor this month?

A. $648 B. $720 C. $750 D. $31.25:

50. The direct income capitalization model employs ……….. time horizon

A. an infinite B. a 5-to-10 year C. lagged D. variable. Get Finance homework help today

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