4. a. Now assuming that a bank offers you a 30-year loan at 3.25% compounded monthly to pay the balance of your $257,000 loan, what monthly payments would you have in order to own the house after 30 years? (Show what you put into your calculator) b. After paying on the loan for 12 years at, you decide to refinance. How much do you still owe after 12 years? (Show what you input into your calculator) c. After refinancing, what will be your new monthly payments if you have a new 20-year mortgage at 2.5% compounded monthly? (Show what you input into your calculator)

4. a. Now assuming that a bank offers you a 30-year loan at 3.25% compounded monthly to pay the balance of your $257,000 loan, what monthly payments would you have in order to own the house after 30 years? (Show what you put into your calculator) b. After paying on the loan for 12 years at, you decide to refinance. How much do you still owe after 12 years? (Show what you input into your calculator) c. After refinancing, what will be your new monthly payments if you have a new 20-year mortgage at 2.5% compounded monthly? (Show what you input into your calculator)

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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Loan Basics Inputs Present value 325,000 Interest rate/year Number of years 4.00% 30 Present Value using a Time Line Year 10 15 20 25 30 Beginning Principal Balance Payment Interest component Principal component
K You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $5,500. You plan to put down $1,200 and borrow $4,300. You will need to make annual payments of $1,200 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) OA. Year Cash Flow $4,300 0 OB. Year 0 Cash Flow - $1,200 OC. Year Cash Flow $5,500 0 OD. Year 1 - $1,200 1 $1,200 2 Cash Flow - $4,300 $1,200 - $1,200 2 $1,200 - $1,200 - $1,200 2 $1,200 3 - $1,200 3 $1,200 3 - $1,200 3 $1,200 - $1,200 4 $1,200 4 - $1,200 4 $1,200 5 - $1,200 5 $1,200 5 - $1,200 5 $1,200
Please explain part b of the question step by step through formula, not excel
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)$
b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? Need detail help wtih D. include N=I%=PV=FV=PMT Thank you
C. ich total money will you pull out of the account? account at the beginning How much of that money is interest? 19. You can afford a $700 per month mortgage payment. You've found a 30 year loan at 5% interest. a. How big of a loan can you afford? b. How much total money will you pay the loan company? How much of that money is interest? C. down payn
2. (From section 6.2) You want to be able to withdraw $50,100 from your account each year for 20 years after you retire. You expect to retire in 35 years. If your investment account earns 5.5% interest, how much will you need to deposit into the account at the end of each year until you reach retirement to achieve your retirement goals? (a) The first part is finding how much we need to have in the account by the time we retire. Which formula will you use first? Circle one. Annuity Payout-Annuity (b) What are the following variables that we will need for the formula? PMT = n = t = r = A or Po = (c) Write the formula you will use with the numbers plugged in below. (d) Solve using your calculator or technology and round to two decimal places. Work is not required here. Write the answer here and state which variable you solved for. (e) Using your own words, describe what you found by solving the equation in terms of the word problem given.
Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.84% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. How much money could you borrow today if you pay the bank $57 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $54 instead? If you deposit the money in the bank today you will have $ in one year. (Round to the nearest cent.)
1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.
Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi- monthly payments of $250? How much sooner will the loan be paid off?
You bought a house for $500,000 with a 30 year bank loan that has quarterly payments at an interest rate of 7% (APR). Immediately after year 10 (20 years left on the loan). You will resell the house for $ 600,000 and completely pay off the rest of the loan. How much do you have to pay the bank to completely pay off the loan? $428, 652.86 $426,866.75 $361, 273.83 $514,383.43

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