A $89,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 8.8% compounded semi-annually for a five-year term (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the five-year term (c) If the mortgage is renewed for a five-year term at 9% compounded semi-annually, what is the size of the monthly payment for the renewal term? OND (a) The size of the monthly payment is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed) (b) The balance at the end of the five-year term is 5 (Round the final anserer to the nearest cent as needed Round all intermediate values to six decimal places as needed) (c) The size of the monthly payment for the renewal term is s (Round the final answer to the nearest cont as needed Round all intermediate values to six decinal places needed)

A $89,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 8.8% compounded semi-annually for a five-year term (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the five-year term (c) If the mortgage is renewed for a five-year term at 9% compounded semi-annually, what is the size of the monthly payment for the renewal term? OND (a) The size of the monthly payment is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed) (b) The balance at the end of the five-year term is 5 (Round the final anserer to the nearest cent as needed Round all intermediate values to six decimal places as needed) (c) The size of the monthly payment for the renewal term is s (Round the final answer to the nearest cont as needed Round all intermediate values to six decinal places needed)

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 interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually. Monthly payments are based on a 25-year amortization. Suppose a $3,000 prepayment is made at the end of the third year. What will be the principal balance at the end of the five-year term?
A $40,000 mortgage taken out on June 1 is to be repaid by monthly payments rounded up to the nearest $10. The payments are due on the first day of each month starting July 1. The amortization period is 10 years and interest is 5.7% compounded semi-annually for a six-month term. Construct an amortization schedule for the six-month term. What is the monthly payment rounded up to the nearest $10? Payment=5 Comm
A 25 year mortgage requires payments of $3443.75 at the end of each month. If interest 5.84% compounded monthly, what was their original loan amount? What would be the interest charge for the entire loan?
The mortgage contract states that the debtor must pay a minimum of P100,000 per year on the 7% interest, P1,000,000 loan. The balance would be due by the end of the tenth year as a lump sum. A.) Balloon payment mortgage B.) Rollover mortgage C.) Home equity loans D.) Construction to permanent mortgages
Given the following information, calculate the balloon payment for a partially amortized mortgage: loan amount: $155,000; term to maturity: 7 years; amortization term: 15 years; interest rate: 5.5%.
A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1% compounded semi-annually for a six-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the six-year term. (c) If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term?
A $305,000 mortgage at 5.00% compounded semi-annually was settled with monthly payments of $2,300. a. What is the amortization period for the mortgage? b. How much will the amortization period be shortened by if bi-weekly payments of $1,200 are made instead of the monthly payments?
The interest rate for the first four years of an $89,000 mortgage loan is 8.3% compounded semiannually. Monthly payments are calculated using a 20-year amortization.a. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Principal balance $ b. What will be the monthly payments if the loan is renewed at 5.7% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Payment $ per month
A mortgage balance of $28,000 is to be repaid over a 15-year term by equal monthly payments at 4.9% compounded semi-annually. At the request of the mortgagor, the monthly payments were set at $425. (a) (b) What is the size of the last payment? (c) Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the total actual amount paid. How many payments will the mortgagor have to make? (a) The mortgagor will have to make payments. (Round up to the nearest whole number.)
A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $1,480. Required: a. What will be the loan balance at the end of year 1? b. If the interest rate increases to 13 percent at the end of year 2, how much is the payment plus negative amortization in year 2 and year 5 if the payment remains at $1,480?
A $98,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 6.6% compounded semi-annually for a five-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the five-year term. (c) If the mortgage is renewed for a five-year term at 8% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The balance at the end of the five-year term is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The size of the monthly payment for the renewal term is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Determine the monthly principal and interest payment for a 15 -year mortgage when the amount financed is $85,000 and the annual percentage rate (APR) is 7.0%. The monthly principal and interest payment is $ (Round to the nearest cent as nếeded.)

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