9. Jared will repay a mortgage over 25 years. This table shows 2 of the payments.PaymentnumberMonthlyInterestPrincipalpaid$366.97$571.61Outstandingbalanceраyment$976.34$976.34paid$609.36$404.7325$171 204.93$113 382.65150For each payment, determine what percent of the payment is interest.b) For each payment, determine what percent of the mortgage has been paid off.c) Why do the interest paid decreases and the principal paid increases over the life of the mortgage?

Equated Monthly Payment or EMI is a fixed amount paid every month by the borrower. It includes both…

9. Jared will repay a mortgage over 25 years. This table shows 2 of the Раyment number payments. Outstanding balance Monthly Interest payment $976.34 $976.34 paid $609.36 $404.73 Principal paid $366.97 $571.61 25 $171 204.93 $113 382.65 150 a) For each payment, determine what percent of the payment is interest. b) For each payment, determine what percent of the mortgage has been paid off. c) Why do the interest paid decreases and the principal paid increases over the life of the mortgage?

9. Jared will repay a mortgage over 25 years. This table shows 2 of the Раyment number payments. Outstanding balance Monthly Interest payment $976.34 $976.34 paid $609.36 $404.73 Principal paid $366.97 $571.61 25 $171 204.93 $113 382.65 150 a) For each payment, determine what percent of the payment is interest. b) For each payment, determine what percent of the mortgage has been paid off. c) Why do the interest paid decreases and the principal paid increases over the life of the mortgage?

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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A couple borrows $300,000 at an APR of 4.8% compounded monthly on a 30-year mortgage with monthly payments of $1,574. (a) How much of the first payment goes to interest? (b) Find the total interest paid over the life of the loan. (c) After making their 70th payment, they refinance the loan at an APR of 3.6% compounded monthly for 15 years. The refinanced amount includes the unpaid balance from the original loan plus a refinance charge of $2,000. Find the new monthly payment. (d) Find the amount saved by refinancing.
A family has a $137,210, 30-year mortgage at 5.4% compounded monthly. Find the monthly payment. Also find the unpaid balance after the following periods of time. (A) 10 years (B) 20 years (C) 25 years
Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. ..... a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
7. Mr. Solo amortizes a loan of $150,000 by obtaining a 20-year mortgage at 5% compounded monthly. Find (a) the monthly payment, (b) the total interest charge, (c) the principal remaining after five years, and (d) the remaining principal
Given the following information on a 30-year fully-amortizing mortgage, use the amortization table function on your financial calculator to determine the portion of the monthly payment that goes to principal in 84th payment. Loan amount: $250.000; Annual interest rate: 6%; Monthly payment: $1,498.88.
10.4 Allocation of the Monthly Payment (pp. 584-387) Compute (a) the allocation of the monthly payment toward principal and interest and (b) the new principal. Rowena Tinley obtains a 30-year, $90,000 mortgage from State Bank. The interest rate is 7.5%, and her monthly payment is $629.10. For the first payment, what is the amount of (a) interest, (b) payment to principal, and (c) new principal? Step 1: Find the interest. Principal x Rate x Time $90,000.00 x 7.5% x 12 = $562.50 interest Step 2: Find the payment to principal. Monthly Payment Interest $629.10 $562.50 - $66.60 payment to principal Step 3: Find the new principal. Previous Balance - Payment to Principal $90,000.00 $66.60 = $89,933.40 new principal Review Exercises Find the (a) amount for interest, (b) amount for principal, and (c) new principal. Interest First Monthly Amount for Payment Amount for Mortgage Amount New Principal b. $ Principal C.S Rate Interest 26. $ 60,000 7.0% $399.00 a. S 27. 130,000 5.5 738.40 a. b. 28.…
Using this table as needed, calculate the required information for the mortgage. Number Table Total Monthly Payment (in $) Term Amount Interest of Loan of $1,000s Factor Interest Financed Rate (years) Financed (in $) (in $) $85,500 8.00% 30 %24 %24 %24
A mortgage for a condominium had a principal balance of $40,800 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $664 O $1,295 O $657 O $672
A family has a $114,922, 30-year mortgage at 6% compounded monthly. Find the monthly payment. Also find the unpaid balance after the following periods of time. (A) 10 years (B) 20 years (C) 25 years
Using this table as needed, calculate the required information for the mortgage. (Round dollars to the nearest cent.) Number Table Monthly Payment (in $) Term Total Amount Interest of Loan (years) of $1,000s Financed Factor Interest Financed Rate (in $) (in $) $165,300 5.25% 15 %24 %24 %24
Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month towards the principal. Determine the ending balance after the first month? Payment Beginning Monthly Extra Balance Number Payment Payment 1 210,000.00 a. 100.00 2 b. a. 100.00 3 208,351.69 a. 100.00 4 207,521.35 a. 100.00 5 206,686.86 a. 100.00 Towards Towards Interest Principal 1,050.00 1,045.89 d. 1,037.61 1,033.43 Ending Balance 822.10 209,177.90 826.21 830.34 e. 838.67 C. 207,521.35 206,686.86 205,848.19

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