Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%, compounded twice a year. What is the Effective Annual Interest Rate? a. 7.8698% b. 8.0% O c. 8.4% O d. 8.16% What is the monthly payment on the mortgage? a. $3,776.51 O b. $3,816.07 O c. 3,912.23 O d. $3,666.84

Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%, compounded twice a year. What is the Effective Annual Interest Rate? a. 7.8698% b. 8.0% O c. 8.4% O d. 8.16% What is the monthly payment on the mortgage? a. $3,776.51 O b. $3,816.07 O c. 3,912.23 O d. $3,666.84

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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Theodore D. Kat is applying to his credit union for a mortgage of $200,000. The bank has quoted 8% an interest rate. He would pay off the mortgage over 25- years (amortization period) and make a payment at the end of each month. A. Calculate EAR (1/100 of one percent, no %, e.g. 9.35) B. How much are Theodore's monthly payments?
Donelle just purchased a new home with a $400,000 mortgage with a fixed rate of 8.5% (APR) and a 30-year maturity. What are Donelle's monthly payments on the mortgage? O $3,101.69 O $2,833.33 O $2.907,85 $3,075.65
7. Ann obtains a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000 at 7.05%. What will be Ann’s mortgage balance after 20 years of payments (ie after 240 months)?
Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments. If the borrower pays an additional $120 with each monthly payment, what will be the amount of the last monthly payment? A. $839.46 B. $357.77 C. $843.66 D. $419.85 E. $355.99 F. $420.90 G. $418.81 H. $841.55
Assume we have a $500,000 mortgage at a 3.5% original interest rate, 30-year term, and monthly payments. The interest rate can be adjusted at the end of each year, and we assume the rate increases by 0.25% after the first year. What is the monthly payment for the 4th year of the loan? O 2,418,25 O 2,448,03 O 2,455,81 None of the given answers O2,481,25
ngMr. Aman wants to refinance his mortgage loan as the interest rates in the market arereduced. The outstanding balance will be borrowed by Aman at the rate of 5% APR. Themortgage loan term was 15 years at 6% APR. The monthly payment on current mortgageloan is $4,000. Aman just made 15th payment. How much amount Aman needs to borrowto refinance his mortgage?(a) $476,591.71(b) $448,690.58(c) $474,014.06(d) $505,820.97
How much will you pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning of month? Interest is 3.5% compounded annually. O a. $1,968 O b. $1,973 OC. $1,979 O d. $1,997 O e. $1,991
If I purchase a home for $150,000. I do a fixed 30-year mortgage at 6%. I have to put down 10% or $15,000. What would be my annual payment? A. $6,456.72 B. $9,376.24 C. $9,712.72 D. $12,345.67
Assume that you take out a 30-year mortgage (360 months) with a face value of $425,000 and a stated annual rate of 2.51%. Given this information, and assuming no prepayments, determine what percentage of your 153rd monthly payment will go towards interest. A) 51.15% B) 63% C) 53.37% D) 35.25% E) 41.06%
You are considering two payment options on a $500,000 20-year mortgage having an interest rate of 2.8% compounded monthly. The first option is to make monthly payments at the start of each month, while the second option is to make payments at the end of each month. How much interest will be saved by choosing the first option? O a. $1,521.60 O b. $1,721.60 O c. $1,921.60 O d. $2,121.60 O e. $2,321.60
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.
Calculate Jaime's mortgage payment using the 5% rate for 30 years on a mortgage balance of $233,000

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