5 Margo paid $A per month for B years to pay off a mortgage on her house. If her down payment was SC andinterest rate was D% compounded monthly, what was the purchase price of the house?2A=B=C=D=$55028 years$5,2006%Try Again

If the current cost or purchase price of the asset or property is to be computed and other…

Answered: 5 Margo paid $A per month for B years…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 1 To pay the remainder of his student loan, Tran borrows $3500 from his at an interest of 3.5% per year, compounded semi-annually. His parents would like the lone to be paid in full in 3 years. How much interest will Tran pay to his parents? Question 1 options: a) $350.00 b) $383.96 c) $410.00 d) $400.00
2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes the type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional A B C D I and III, only II and IV, only II and III, only I and IV, only
K A person purchased a $216,732 home 10 years ago by paying 15% down and signing a 30-year mortgage at 11.1% compounded monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 20-year mortgage at 6.3% compounded monthly. How much interest will refinancing save? C Money Saved: $ (Round to the nearest cent as needed.)
QUESTION 1 Liam can afford $175 per month as a car payment. If Liam can get an auto loan at 4% interest for 5 years, how expensive of a car can Liam afford? Give your answer to the nearest dollar.
Item 3 Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Round your answers to the nearest cent.)
Ay 3. Sam got a job at the Brick. He plans to save $500 every month for 3 years to buy a car. The savings account earns 2.25% compounded monthly. If he puts the money in his savings account at the end of each month, what will be the present value of the balance in the account at the end of the three-year term? a.$18 603.37 b.$18 000.00 c. $27 284.81 d.$17 390.19 e.$18 408.04
Willie just bought a home and financed his purchase with a $1,000,000 6% 20- year mortgage. (a) What is Willie's monthly mortgage payment? (b) What will be the balance on Willie's mortgage after 12 years? 1. How did you get the monthly mortgage payment of $7,164.31? 2. How did you get the balance of $545,169.90 after 12 years?
K A person purchased a $220,222 home 10 years ago by paying 20% down and signing a 30-year mortgage at 11.1% compounded monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 20-year mortgage at 6.9% compounded monthly. How much interest will refinancing save? Money Saved: $ (Round to the nearest cent as needed.)
To help buy her new condominium, Mai is taking out a $163,000 mortgage loan for 30 years at 3.4% annual interest. Her monthly payment for this loan is $722.87. of a year. Round your answers to the nearest cent. 12 Fill in all the blanks in the amortization schedule for the loan. Assume that each month is Payment number Principal payment Interest New loan balance payment 1 2 $| $162,477.18 130 $346.85 $376.02 $122,041.32 $ 0 131
K The Nicols are buying a house selling for $345,000. They pay a down payment of $45,000 from the sale of their current house. To obtain a 20-year mortgage at a 4.5% interest rate, the Nicols must pay 2.5 points at the time of closing a) What is the amount of the mortgage? b) What is the cost of the 2.5 points? a) The amount of the mortgage is $ b) The cost of the 2.5 points on the mortgage is S C***
QUESTION 12 Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year partially amortizing fixed rate mortgage at 100% LTV, an annual interest rate of 7%, with monthly compounding and monthly payments. The payment on the loan is $6,000 per month. Ann has a balloon payment due 5 years after she gets the loan. If Ann pays the required monthly payment for 5 years, how much is her balloon payment? OA. $1,000,000 B. $941,315.90 OC. $988,067.85 OD. $864,988.05
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5 Margo paid $A per month for B years to pay off a mortgage on her house. If her down payment was $C and interest rate was D% compounded monthly, what was the purchase price of the house? Page 2 $550 A= B= C= D= 28 years $5,200 6% Try Again