6. Assume an elderly couple owns a $140,000 home that is free and clear of mortgage debt.A reverse annuity mortgage (RAM) lender has agreed to a $100,000 RAM. The loan termis 12 years, the contract is 9.25%, and payments will be made at the end of each month.a. What is the monthly payment on this RAM?b. Fill in the following partial loan amortization table:Month12345Beginning BalanceMonthly PaymentInterestEnding BalanceC. What will be the loan balance at the end of the 12-year term?d. What portion of the loan balance at the end of year 12 represents principal? Whatportion represents interest?

a. The monthly payment on this Reverse Annuity Mortgage (RAM) is $1,152.16. b. The following is the…

Answered: 6. Assume an elderly couple owns a…

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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The following loan is a simple interest amortized loan with monthly payments. $155,000, 9- 9-%, 30 years 2 (a) Find the monthly payment. (Give your answer to the nearest cent.) Payment $ (b) Find the total.interest for the given simple interest amortized loan. (Give your answer to the nearest cent.) Total interest | Enter a number.
A fully amortizing mortgage is made for $112,000 at 6.5 percent interest. Required: If the monthly payments are $1,060 per month, when will the loan be repaid? (Round up your answer to the nearest whole number)
Find the monthly house payments necessary to amortize the following loan. What are the total payments and total amount of interest paid. 196,000 at 6.89% for 25 years
Suppose a homeowner is evaluating two mortgages, both of which are arrangements for repaying a loan of $200,000. Mortgage C requires monthly payments at the end of each month for 15 years at a stated annual rate of 6%. Mortgage D has monthly payments, paid at the beginning of each month for 18 years, at a stated annual rate of 5.5%. Mortgage C has a lower monthly payment than Mortgage D. False True
A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments are to be made monthly. Required: a. Calculate monthly payments. b. Calculate interest and principal payments during month 1. c. Calculate total principal and total interest paid over 25 years. d. Calculate the outstanding loan balance if the loan is repaid at the end of year 10. e. Calculate total monthly interest and principal payments through year 10. f. What would the breakdown of interest and principal be during month 50?
A mortgage loan having a face value of \$ \\$ 265,000 \$ is arranged by a mortgage broker. From this face value, the broker deducted a fee of \$ \\$ 4,000 \$. The mortgage is written at a contract rate of \$ 3.2 \\% \$ compounded semiannually for a twenty-five year term, with monthly payments. What is the annual cost of borrowing, including the brokerage fee, expressed as an effective interest rate? \$ 3.00 \\% \$ \$ 3.37 \\% \$ \$ 3.73 \\% \$ \$ 4.15 \\% \$ \$ 4.09 \\% \$
Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 O b) $102,000 O c) $174,000 d) $198,000 e) $205,000
Find the monthly house payments nessary to amortize the following loan. Find total payments and total interest paid. 198000 at 6.94% for 30 years.
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Please explain each step, step by step
Use PMT formula on the image uploaded to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 20-year fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. ______________________________________________________________ a. The monthly payment is $________.. (Do not round until the final answer. Then round to the nearest cent as needed.) - The total interest for the loan is $_______. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Payment Number Interest Principal Loan Balance 1 $ $ $ 2 $ $ $ 3 $ $ $ (Use the answer from part a to find these answers. Round to the…
2. Sue borrows $600,000 at 3.85%. The mortgage is for 30 years. A. What is the monthly payment? B. How much interest will be paid over the life of the loan? C. Recalculate the total interest rate if the rate changes from 3.85% to 6.85 %. What is the total interest paid over the life of the 6.85% loan?

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