A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 12 years ago for $70,525. The home was financed by paying 10% down and signing a 30-year mortgage at 9.3% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 144th payment, they applied to the loan company for the maximum loan. How much (to the nearest they receive? dollar) will Amount of loan: $ (Round to the nearest dollar.)
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 12 years ago for $70,525. The home was financed by paying 10% down and signing a 30-year mortgage at 9.3% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 144th payment, they applied to the loan company for the maximum loan. How much (to the nearest they receive? dollar) will Amount of loan: $ (Round to the nearest dollar.)
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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Transcribed Image Text:A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up
to 70% of their equity. They puchased their home 12 years ago for $70,525. The home was financed by paying 10%
down and signing a 30-year mortgage at 9.3% on the unpaid balance. Equal monthly payments were made to
amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their
144th payment, they applied to the loan company for the maximum loan. How much (to the nearest
they receive?
dollar) will
Amount of loan: $
(Round to the nearest dollar.)
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