A $106,000 mortgage loan has a 20-year amortization. a. Calculate the monthly payment at interest rates of 5.2%, 7.2%, and 9.2% compounded semiannually. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Interest rate Monthly payment 5.2% 7.2% 9.2% S $ $ b. By what percentage does the monthly payment on the 9.2% mortgage exceed the monthly payment on the 5.2% mortgage? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Percent difference Interest rate. 5.2% 7.2% 9.2% . Calculate the total interest paid over the entire 20-year amortization period at each of the three interest rates. (Assume the final Dayment equals the others.) (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Total interest paid $ S $
A $106,000 mortgage loan has a 20-year amortization. a. Calculate the monthly payment at interest rates of 5.2%, 7.2%, and 9.2% compounded semiannually. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Interest rate Monthly payment 5.2% 7.2% 9.2% S $ $ b. By what percentage does the monthly payment on the 9.2% mortgage exceed the monthly payment on the 5.2% mortgage? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Percent difference Interest rate. 5.2% 7.2% 9.2% . Calculate the total interest paid over the entire 20-year amortization period at each of the three interest rates. (Assume the final Dayment equals the others.) (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Total interest paid $ S $
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 $106,000 mortgage loan has a 20-year amortization.
a. Calculate the monthly payment at interest rates of 5.2%, 7.2%, and 9.2 % compounded semiannually. (Do not round intermediate
calculations and round your final answers to 2 decimal places.)
Interest rate Monthly payment
5.2%
7.2%
9.2%
$
$
$
b. By what percentage does the monthly payment on the 9.2% mortgage exceed the monthly payment on the 5.2% mortgage? (Do not
round intermediate calculations and round your final answer to 2 decimal places.)
Percent difference.
c. Calculate the total interest paid over the entire 20-year amortization period at each of the three interest rates. (Assume the final
payment equals the others.) (Do not round intermediate calculations and round your final answers to the nearest whole dollar
amount.)
Interest rate
5.2%
7.2%
9.2%
Total interest
paid
$
S
$
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