Alex and Steve bought their current house 10 years ago for $355,000 andmade a down payment of $45,000. They obtained a 25-year mortgage forthe remaining amount at 6% APR with quarterly compounding andconstant monthly payments. They just sold their house for $550,000. Theywill now buy a new house. How much of a down payment can they affordto make on their new house?a) $244,012.30b) $288,000.44c) $314,187.30d) $450,000.00e) $374,562.62

EAR = ((1+ r/n)^n) - 1 APR = (((1+EAR)^(1/n)) - 1) x (n) Monthly Payment = Loan/ Monthly…

Answered: Alex and Steve bought their current…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 . Archie buys a house for $189 900, with a down payment of 10%. The bank has offered Archie a 20-year mortgage for the remainder of the cost, at 4% compounded semi-annually, with payments every two weeks. Jake and Archie both move after 5 years. Archie's house has depreciated by 2% per year. Compare Jake's and Archie's housing costs. per month.
Da Feng is looking to refinance his home because rates have gone down since he purchased the house 5 years ago. He started with a 30-year fixed-rate mortgage of $276,000 at an annual rate of 7.30%. He has to make monthly payments. He can now get a 25-year fixed-rate mortgage at an annual rate of 4.30% on the remaining balance of his initial mortgage. This loan also requires monthly payments. In order to re-finance, Da Feng will need to pay closing costs of $3,700. These costs are out of pocket and cannot be rolled into the new mortgage. How much will refinancing save Da Feng? (i.e. What is the NPV of the refinancing decision?) $181,311.02 您不应该选择此项 Your calculation was based on a wrong balance on the existing mortgage. O $85,659.68 $86,861.44 $83,161.44
Jasmine purchased a home in San Francisco near her best friend Sallie. The purchase price of the home was $ 2,000,000. However, Jasmine only financed 80% of the home value as she was able to secure the $400,000 down payment to help lower her monthly payments. What is her monthly payment if she financed at today's rate of 7.55% for a 15-year mortgage?
Max wants to buy a house, to put on his lot, to hold his giant cheese refrigerator. Max buys a$2,000,000 house and makes a $500,000 down payment. Themortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after thepurchase of the house.a) How much are Max’s monthly payments?b) How much of the 300the payment goes to the principal and how much goes to interest? TVM FORMULA
24) Jim and Nancy just got married today. They want to start saving so they can buy a house five years from today. The average house in their town today sells for $120,000. Housing prices are expected to increase 3 percent a year. When they buy their house five years from now, Jim and Nancy expect to get a 30-year (360-month) mortgage with a 7 percent nominal interest rate. They want the monthly payment on their mortgage to be $500 a month. Jim and Nancy want to buy an average house in their town. They are starting to save today for a down payment on the house. The down payment plus the mortgage will equal the expected price of the house. Their plan is to deposit $2,000 in a brokerage account today and then deposit a fixed amount at the end of each of the next five years. Assuming that the brokerage account has an annual return of 10 percent, how much do Jim and Nancy need to deposit at the end of each year in order to accomplish their goal?
Please help me correctly. Theresa and Raul purchased a house 10 years ago for $220,000. They made a down payment of 20% of the purchase price and secured a 30 year conventional home mortgage at 4.5% per year compounded monthly on the unpaid balance. The house is now worth $280,000. How much equity do Teresa and Raul have in their house now?.
Dave and his Partner decide to buy a house price of $730,000. they put 20% down, and their mortgage is 4.98 compounded monthly amortized over 25 years. what is thier monthly payment?
Jack and Laurie Worthington bought a house for $162,400. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim. (a) Find the Worthingtons' down payment.$ (b) Find the amount that the Worthingtons borrowed from their bank.$ (c) Find the amount that the Worthingtons borrowed from the seller.$ (d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.)$ (e) Find the Worthingtons' monthly interest payment to the seller.
You took out a mortgage on a new house 13 years ago. You bought the house for $300,000; the mortgage loan was $164,000. The original mortgage loan was 30 years. Payments are monthly in the amount of $782.96. What is your remaining balance?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS