1 2 3 4 5 6 7 8 19 20 Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%. 9 Required: 10 Please use the above information and the provided Amortization Chart to answer the below questions: 11 12 Note: Use cells A4 to B7 from the given information to complete this question. 13 14 1. What is the principal (loan)? 15 2. How many total payments on this mortgage? 16 3. How much is their monthly payment? 17 4. How much of the first monthly payment is going towards interest? 18 5. How much of the first monthly payment is going towards principal? 6. After the first payment, what would be the balance of the principal? 21 22 Cost of home Down payment Term of mortgage Rate of interest 8 8 $560,000.00 60,000 25 6.38% 500000 300 $500,000.00 23 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your 24 Nothing in this area will be graded, but it will be submitted with your assignment. 25 26 300 $3,342.80 x $2,658.33 x

1 2 3 4 5 6 7 8 19 20 Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%. 9 Required: 10 Please use the above information and the provided Amortization Chart to answer the below questions: 11 12 Note: Use cells A4 to B7 from the given information to complete this question. 13 14 1. What is the principal (loan)? 15 2. How many total payments on this mortgage? 16 3. How much is their monthly payment? 17 4. How much of the first monthly payment is going towards interest? 18 5. How much of the first monthly payment is going towards principal? 6. After the first payment, what would be the balance of the principal? 21 22 Cost of home Down payment Term of mortgage Rate of interest 8 8 $560,000.00 60,000 25 6.38% 500000 300 $500,000.00 23 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your 24 Nothing in this area will be graded, but it will be submitted with your assignment. 25 26 300 $3,342.80 x $2,658.33 x

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. Jason and Coretta agreed to pay $559,000 for a four-bedroom colonial home with a $70,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.How much is their monthly payment? Monthly payment $ Complete the table for the breakdown of the first payment. Portion to --- Payment number 1 Interest $_______________ Principal $______________ Balance of loan outstanding $________________________
Required Informatlon [The following information applies to the questions displayed below.] Javier and Anita Sanchez purchased a home on January 1 of year 1 for $1,000,000 by paying $200,000 down and borrowing the remaining $800,000 with a 6 percent loan secured by the home. The Sanchezes made interest-only payments on the loan in years 1 and 2. (Leave no answer blank. Enter zero if applicable.) c. Assume year 1 is 2020 and by the beginning of year 4, the Sanchezes have pald down the principal amount of the loan to $500,000. In year 4, they borrow an additional $100,000 through a loan secured by the home in order to finish their basement. The new loan carries a 7 percent interest rate and is termed a "home equity loan" by the lender. What amount of interest can the Sanchezes deduct on the $100,000 loan? Maximum deductible interest expense
K Bill and Kim Johnson are purchasing a house for $309,000. Their bank requires them to pay a 10% down payment. The current mortgage rate is 8%, and they are required to pay one point at the time of closing. Determine the total amount Bill and Kim will pay for their house, including principal, interest, down payment, and points (do not include taxes and homeowners' insurance) for the following lengths of their mortgage. a) 10 years b) 20 years c) 30 years CAT
Question 2 Pam Beesly is 39 years old today and she wishes to accumulate $513,000 by her 63rd birthday so she can retire. She wishes to accumulate this amount by making equal deposits on her 39th through her 62th birthdays. What annual deposit must Pam make if the fund will earn 8% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Pam must make an annual deposit of $?
Problem 5-24 (Algorithmic) Interest (LO 5.8) Janet and James purchased their personal residence 15 years ago for $302,500. For the current year, they have an $75,625 first mortgage on their home, on which they paid $3,781 in interest. They also have a home equity loan to pay for the children's college tuition secured by their home with a balance throughout the year of $123,750. They paid interest on the home equity loan of $12,375 for the year. Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year. It an amount is zero, enter "0". a. Qualified residence acquisition debt interest b. Qualified home equity debt interest
Question 35 Mary, a recent Western Washington University graduate, applies for and receives a five-year loan through Kent Lending, LLC for $10,000 at 29% APR. If the loan agreement violates the applicable usury statute, Mary may be able to keep: O Any of the answer choices are possible, depending on where the loan was made. the interest that exceeds the usury limit. O the interest and the $5,000. O all of the interest on the loan. Next
QUESTION 15 Ann buys a property that costs $1,000,000. She finances the purchase with a 70% LTV mortgage. She gets a 20 year interest only fixed rate mortgage at an annual interest rate of 5%, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year, etc). Suppose Ann will sell the property during year 3, after she makes the 3rd year's mortgage payment and pays off the balance when she sells. What is Ann's annualized IRR for the loan? A. 5.74% B. 6.69% C. 5.10% D. 5.00%
S 11 Shellie has a mortgage of $56,500 at 5% for 25 years. The property taxes are $350 quarterly, and the hazard insurance premium is $239.50 semiannually. Find the monthly taxes and insurance payment. Select one: C a. $358.75 b. $290.79 c. $422.87 d. $156.58 B e Vai ara laanad in a ludis Edmonds laa aut
Question 11 Larry invested $12,000 at an interest rate of 10.18% for 4 years. If the amortization schedule needs to be constructed, what is the Payment to Principal for the fourth period? A $3,117.32 B) s2,813.29 $2,296.58 $3,449.27
1 2 3 4 5 6 C D F G H Mr. and Mrs. Good purchased a vacation cottage for $380000. They paid $55000 down and agreed to make equal payments at the end of every 3 months for 19 years. Interest is 7.7% compounded quarterly. create your amortization table in the space E below.
1) Alar borrowed 36,000 to buy "Season Gold tickets for the much-improved Toronto Maple Leafs". His Mom wants him to repay the loan back with equal quarterly payments over 10 years, with 12% interest compounded quarterly. (14.1) a) Find the size of those equal payments b) Draw a Partial Amortization Table which will have i) The First 2 payments (ii) Payment # 20 iii) The last 2 payments Payment Amount Number 0 1 2 20 Outstanding Paid Principal Balance 2nd Last # Interest Paid i= ? (last payment)#_ Principle Repaid
CH9HW i Help Save & Exit Submit a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $140,000 in a savings account on January 1 of this year. The savings account will earn 8 percent annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,400 in a savings account. The account will earn 11 percent annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year. (FV of $1, PV of $1, FVA of

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