4.44 The Fairfold family decided to buy a super ski and water sports boat. They took out an $80,000, 3- year, 6% per year, compounded semiannually loan with monthly payments from First Bank and Trust (FB&T). After making only two payments, a banker friend offered to make them a better deal: a 5-year, 4.2% per year, compounded semiannually loan with no transfer fee to his bank and a complete repayment no-fee-required of the remaining principal to FB&T. The principal on the new loan will be the remaining principal from the current loan. Answer the following questions for the Fairfolds as they deliberate this new offer. (a) What is the current monthly payment on the $80,000 loan? (b) What is the current principal due on the current loan? (c) How much interest have they already paid in the first two payments?

4.44 The Fairfold family decided to buy a super ski and water sports boat. They took out an $80,000, 3- year, 6% per year, compounded semiannually loan with monthly payments from First Bank and Trust (FB&T). After making only two payments, a banker friend offered to make them a better deal: a 5-year, 4.2% per year, compounded semiannually loan with no transfer fee to his bank and a complete repayment no-fee-required of the remaining principal to FB&T. The principal on the new loan will be the remaining principal from the current loan. Answer the following questions for the Fairfolds as they deliberate this new offer. (a) What is the current monthly payment on the $80,000 loan? (b) What is the current principal due on the current loan? (c) How much interest have they already paid in the first two payments?

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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Dpn't provide handwritten solution ... The Taylors have purchased a $300,000 house. They made an initial down payment of $10,000 and secured a mortgage with interest charged at the rate of 7%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years?
14. Loan amortization and capital recovery After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000—with no ($0) down payment. She agreed to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% per year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount Payment Interest Paid Principal Paid Ending Balance 1 $45,000.00 2 3 4 -$0.02
am. 243.
Dick Hercher bought a home in Homewood, Illinois, for $230,00O. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is: Multiple Choice $327,372.80 None of these $184,000.00 $242,144.00 $242,411.00 acer
Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is: Multiple Choice $368,000 $327,372.80 $302,554 $242,042
17. Bahati Zuri obtained an installment loan for $25,000 so he could be a partner in a new restaurant. Barak Financial is offering a loan with an APR of 9% for 36 months and 5% down payment. Niya Credit Union is offering a loan with an APR of 8% for 24 months and 10% down payment. How much does Bahati save by taking the loan that costs the least? Use the Monthly Payment on a Simple Interest Installment Loan of $100.
7
A few years down the road you have moved out, buying your own home. You decide to take another look at your finances. Your outstanding loan of $275 per month only has 8 payments left on it (out of the original 60) with an interest rate of 11.75%. a. What is the finance charge “f”? b. What is the unearned interest “u”? c. How much would it cost to pay it off on payment #53?
Eric borrowed $4,695 from Roger and signed a contract agreeing to pay it back 10 months later with 4.15% simple interest. After 3 months, Roger sold the contract to Chris at a price that would earn Chris 5.00% simple interest per annum. Calculate the price that Chris paid Roger. Your Answer: 4 Answer
This problem is a complex financial problem that requires several skills, perhaps some from previous sections.Clark and Lana take a 30-year home mortgage of $122,000 at 7.4%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1300 per month. (a) Find their regular monthly payment. (Round your answer to the nearest cent.)$ (b) Find the unpaid balance when they begin paying the $1300. (Round your answer to the nearest cent.)$ (c) How many payments of $1300 will it take to pay off the loan? Give the answer correct to two decimal places. monthly payments(d) Use your answer to part (c) to find how much interest they save by paying the loan this way. (Round your answer to the nearest cent.)
10. Loan amortization and capital recovery After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000-with no ($0) down payment. She a to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount 1 2 3 4 $45,000.00 Payment Interest Paid Principal Paid Ending Balance -$0.02
Hi there, I'm trying to solve this corporate finance problem without using excel. John has a 5 year mortgage contract on $332,100 amortized over 25 years at a rate of 5% per year compounded semiannually. At the end of the 5 year contract, the outstanding principal is $250,000. John's interest rate is still the same but he wishes to switch to weekly payments. How much will John's weekly payments be?

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