Q: The effective annual profit rate on a mortgage with monthly payments is 9.38%. What is the monthly…
A: Given the effective annual profit rate of 9.38%, we can calculate the monthly profit rate using the…
Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…
A: Therefore, the number of $1000's financed is 168.3.
Q: Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable…
A: Mortgage Payment Definition: A mortgage payment is a periodic amount paid to a mortgage holder for…
Q: Determine the monthly principal and interest payment for a 20-year mortgage when the amount…
A: The monthly payment can be computed using the payment per thousand dollars corresponding to the…
Q: Suppose you take out a mortgage for $265000 at 2.88% interest, compounded monthly, for 20 years!…
A: Compounding frequency refers to the number of times a sum of money is compounded within a year. This…
Q: Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable…
A: Mortgage Payment Definition: A mortgage payment is a periodic amount paid to a mortgage holder for…
Q: Find the amount (in $) of interest and the maturity value of the loans. Use the formula MV = P + I…
A: Interest expense is a rate at which interest is calculated on the notes payable (amount borrowed).…
Q: You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each…
A: Nominal Interest Rate: It represents the rate of interest that does not take into consideration the…
Q: Assume that the mortgage is a 30-year adjustable rate mortgage. a) Use the table to find the monthly…
A: A mortgage is a type of loan that is used to purchase a property, such as a house or a commercial…
Q: A price level adjusted mortgage (PLAM) is made with the following terms: Amount = $96,700 Initial…
A: A loan is an agreement in which one party borrows funds, assets, or any other kind of resource from…
Q: Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per…
A: A mortgage is a loan that a borrower takes to purchase a property. The property itself acts as…
Q: A price level adjusted mortgage (PLAM) is made with the following terms: Amount = $96,600…
A: Annual effective rate Annual effective rate is calculated as shown below. Annual effective…
Q: Investigate the effect of the interest rate on home loans by finding the monthly payment and the…
A: Data Given, Loan Amount (Principle) = $150000 Time period of loan (n)= 20 years Payment Interval =…
Q: Suppose that you have just borrowed $225,000 using an adjustable-rate mortgage. Suppose that the…
A: Here,BorrowedAmount $ 2,25,000.00Current Year Index Rate1.01%Index Rate at the end of 1st…
Q: Complete the following table, which shows the monthly payments on a $100,000, 30-year mortgage at…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and…
A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…
Q: Complete the following table by using Table 15.1. (Do not round intermediate calculations. Round…
A: Mortgage amount (L) = Selling price - Down payment = $237000 - $47400 = $189600 r = 6% = 0.5% per…
Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…
A: Amount Borrowed = $900 AmountRepaid after 18 months = $1008 Months = 18 YEars = 18/12 = 1.5 years…
Q: Use your financial calculator to determine the monthly payments for each of the following $213,200…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: A 30-year mortgage has an annual interest rate of 6 percent and a loan amount of $260,000. (Hint:…
A: The CUMPRINC function in Excel is used to compute the total principal payments on a loan or mortgage…
Q: A price level adjusted mortgage ( PLAM) is made with the following terms: Amount = $ 96, 800 Initial…
A: The objective of the question is to calculate the payments at the beginning of each year, the loan…
Q: Purchase price of home Down Mortgage Interest payment amount Monthly payment Mortgage рayment Total…
A: As there are multiple sub parts only the first three can be solved according to company’s…
Q: Suppose you borrow $250,000 PLAM (Price Level Adjusted Mortgage) for 30 years, monthly payments with…
A: Amount of borrowings = $250,000Time period for payments = 30 yearsMonthly payments = $6,000Mortgage…
Q: Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments…
A: Amortization refers to the process of gradually paying off a debt, typically a loan, through regular…
Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Find the amount of interest and the maturity value of the following loan. Use the formula MV = P+ I…
A: Rate = 7% + (1/4)% Rate = 7% + 0.25% Rate = 7.25% ----------------------- Years = 4 + (1/2) Years =…
Q: A price level adjusted mortgage (PLAM) is made with the following terms: Amount = $96,000…
A: b. To calculate the loan balance at the end of the fifth year, we need to calculate the outstanding…
Q: What is the total cost of interest with the new interest rate?
A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…
Q: Use Excel to solve this problem. An $11,000 mortgage has a 30-year term and a 6% nominal interest…
A: >Please refer to the below spreadsheet for calculation and answer. Cell reference was also…
Q: Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per…
A: An amortized loan is a borrowing that is repaid slowly. Every payment comprises principal repayment…
Q: Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed…
A: Given, Principal amount= $95,000 Time period= 15 years Annual percentage rate= 6% The next step…
Q: Determine the periodic payments PMT on the given loan or mortgage. (Round your answer to the nearest…
A: Loan = $90,000 Interest = 3% Monthly interest = 0.03/12 =0.25% Time =10 years Monthly period =10*12…
Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Complete the following table, which shows the monthly payments on a $100,000, 30-year mortgage at…
A: The amount of money borrowed is a mortgage and the borrowed money repaid over the period of time…
Q: Consider a $100,000, 30-year, 7% interest mortgage loan with monthly payments. What is the interest…
A: Interest payments:Interest payments refer to the amount of money that is paid by a borrower to a…
Q: Find the interest rate (APR) on a 27-year mortgage with a initial loan amount of $358,000, if the…
A: A mortgage refers to a covered loan borrowed for the purchase of property with the property itself…
Q: Determine the periodic payments PMT on the given loan or mortgage. (Round your answer to the…
A: PMT: PMT is the annual payment. A loan borrowed should repaid annual or quarterly or monthly…
Q: a. $64,000, 15-year loan at 7.00 percent. b. $140,000, 30-year loan at 5.50 percent. c. $104,000,…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A 30-year mortgage has an annual interest rate of 5.85 percent and a loan amount of $245,000. (Hint:…
A: Mortgage loans are paid by the monthly payments that carry the payment of interest and payment of…
Q: Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments…
A: The Loan amount when repaid in equal installments along with principal and interest on balance loan…
Q: Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per…
A: An amortized loan is a loan that is repaid slowly with a monthly payment comprising both principal…
Q: Find the annual simple interest rate (in percent) on a 3 -month loan of \( \$ 5,000 \) if the…
A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…
Q: Use Excel to create an annual summary (5-years) amortization schedule for a fully-amortizing, fixed…
A: The debt amortization schedule refers to the bond's structure in a tabular representation, showing…
Please show how to solve using an excel spreadsheet:
Suppose you borrow $250,000 PLAM (Price Level Adjusted Mortgage) for 30 years, monthly payments with $6,000 origination cost. The mortgage rate is 6% with annual outstanding balance adjustments based on the following inflation information in the table attached.
Step by step
Solved in 2 steps
- A price level adjusted mortgage (PLAM) is made with the following terms: Amount = $95,700 Initial interest rate = 4 percent Term = 30 years Points = 6 percent Payments to be reset at the beginning of each year. Assuming inflation is expected to increase at the rate of 6 percent per year for the next five years: Required: a. Compute the payments at the beginning of each year (BOY). b. What is the loan balance at the end of the fifth year? c. What is the yield to the lender on such a mortgage? Please SHOW me how this is done. I cannot calculate payment when inputing these values to Excel. Thank you!Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? How do I round time value factor and final answers to 2 decimal places? What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?Find the indicated amounts for the fixed-rate mortgages. Purchase price of home Down Mortgage Interest payment amount Monthly payment Mortgage payment Total paid for mortgage Interest Years rate paid per $1,000 S130,000 | Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed. 5.00% 30 The mortgage amount is $ (Round to the nearest dollar as needed.)
- Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9.) Note: Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number. Monthly gross income Down payment to be made (percent of purchase price) Other debt (monthly payment) Monthly estimate for property taxes and insurance 30-year loan Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase price Affordable Amount Mortgage Costs $ 3,250 20 Percent $ 175 $ 210 7.0 PercentBased on Exhibit 7-7, what would be the monthly mortgage payments for each of the following situations? (Round your answers to 2 decimal places.) a A $160.000, 15-year loan at 4.5 percent. b. A $215,000, 30-year loan at 5 percent. c. A $190,000, 20-year loan at 6 percent. +Show the first two lines of the amortization table for your new home mortgage, assuming a sellingprice of $118,500, a down payment of 6%, annual interest rate 5.3% compounded monthly, andmonthly payments on a 30-year mortgage. (Please help by solving through calculator)
- Complete the following table: (Use Table 15.1.) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Selling price down payment amount mortgage rate years Monthly paymeny First payment broken down to interest first payment broken down to principal Balance at end of month $236,000 $47,200 7.00% 15 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651 3.36714 2.750 0.22917 9.54110 6.78622 5.42166 4.61311 4.08241 3.43728 2.875 0.23958 9.59848 6.84586 5.48361 4.67735 4.14892…Give typing answer with explanation and conclusion If the annual payment mortgage constant for an amortizing loan is 10.6%, and the loan amount is $25,000,000, what is the annual payment?2. Using tab 2 in the template, create the amortization spreadsheet and answer the following questions for a $700,000 10-year adjustable-rate mortgage (ARM) loan that is fully-amortizing and has monthly payments. A teaser rate of 4.4% applies to the mortgage payments and amortization during the first 2 years of the loan. After the second , the annual interest rate on the loan is equal to the going rate on an index + a margin of 2.7%, subject to an annual interest rate cap of 2.5% and a lifetime interest rate cap of 5.8% over the initial teaser rate. Expectations for the beginning-of-year values for the appropriate index are as follows: year, Year Index 3451 3.1% 4.7% 6.5% 6 2.5% 7 2.9% 8 5.1% 9 6.6% 10 6.0% a) Based on these expectations and conditions, what would be the actual (contract) interest rates applied to the mortgage payment during years 1 through 10? b) What would be the APR on this loan, if held until maturity – assuming up-front points of 2.0%? c) What is the outstanding…
- Find apr of the loan given the amount of the loan, number and type of payments and the add on interest rate. Loan amount $6000, 3 yearly payments ;rate 8% the annual percentage rate is?A $178,000 mortgage loan is offered at an APR of 4%. Follow the instructions below the table. The loan payment formula was used to calculate the monthly payments for the loans and results are reported in the table below. You do NOT have to verify the given payment entries (you already used the formula for calculating payments in the first part Loan term in years Monthly Payment on $178,000 loan (in $) Total amount paid back over the full loan term (in $) Interest over the full loan term (in $) Difference in monthly payment from option above (in $) t = 15 years Pmt = $ 1316.64 F = I = No entry here t = 30 years Pmt = $ 849.80 F = I = Difference in MONTHLY payment t = 40 years Pmt = $ 743.93 F = I = Difference in MONTHLY payment t = 50 years Pmt = $ 686.56 F = I = Difference in MONTHLY payment For each loan term option, calculate the total amount paid back over the…Can you please show the step-by-step solution. please do not skip steps. Explain how you got the answer you did
