Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year partially amortizing fixed rate mortgage at 100% LTV, an annual interest rate of 7%, with monthly compounding and monthly payments. The payment on the loan is $6,000 per month. Ann has a balloon payment due 5 years after she gets the loan. If Ann pays the required monthly payment for 5 years, how much is her balloon payment? OA. $1,000,000 OB. $941,315.90 OC. $988,067.85 OD. $864,988.05

Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year partially amortizing fixed rate mortgage at 100% LTV, an annual interest rate of 7%, with monthly compounding and monthly payments. The payment on the loan is $6,000 per month. Ann has a balloon payment due 5 years after she gets the loan. If Ann pays the required monthly payment for 5 years, how much is her balloon payment? OA. $1,000,000 OB. $941,315.90 OC. $988,067.85 OD. $864,988.05

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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Similar questions

Donna wants to buy a house for $900,000.00. She makes a 15% down payment and borrows the rest by getting a 30-year mortgage. Her monthly mortgage payment is $3,803.75. What is the principal of her mortgage? What is the total she will pay on the loan?
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? What is the monthly payment on the mortgage? What is the balance outstanding after 60 months? What is the total value of interest paid over the life of the mortgage?How much would Angie pay per week if she decided to change her mortgage payments to weekly instead of monthly?
The McBertys have "$20, 000" in savings to use as a down payment on a new home. They also have determined that they can afford between "$1, 600 and $1,900" per month for mortgage payments. If the mortgage rates are 11% per year compounded monthly, what is the price range for houses they should consider for a 30 - year loan?
Pat bought a home for $165,000 and made a $25,000 down payment. She got a fixed rate mortgage at 5% for 30 years. What will her payments be? What is the total interest over the life of the loan?
Julia has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is currently paying $1.200 a month on the loan, at this rate how many years will it take to repay the loan?
Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 5.7% and a monthly payment of $595.50. After 3 years, Angela decides to purchase a new car. What is the payoff on Angela's loan?
Marie and Danny Would like to buy a house for $220,000. The down payment for the mortgage is 30% of the price of the house. To earn the down payment, they invest $2500 a quarter at 6.2% compounded quarterly. They take a 30-year home mortgage for the rest of the price of the house at 7.3% compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $2000 per month. How much is the down payment? How long will it take Marie and Danny to earn the down payment if they invest $2500 a quarter at 6.2% compounded quarterly? How much is the loan for the mortgage? What is the regular monthly payment? What is the unpaid balance when they begin paying the $2000? How many payments of $2000 will it take to pay off the loan? Give the answer correct to wo decimal places. How much interest will they save by paying the loan this way? Use your answer from #6 to find.
Tobin is buying a new apartment. He can afford a mortgage payment of $1990 a month, and a down payment of $11000. He obtained a 16-year loan at 6.05% compounded monthly. Use Excel to determine what the most expensive apartment he can buy under these terms. How much will Tobin pay in interest over the 16-year years? Apartment price = $ Interest paid = $
Whiskers wants to buy a $600,000 house. She plans to pay $200,000 down and make monthly payments for 20 years. If the loan has an interest rate of 5% monthly with 3 points, what is the true interest rate?
Paul and Paula are purchasing a home for a price of $500,000. To avoid paying mortgage insurance, they will make a down payment of 20% of the price or $100,000. They will finance the remaining $400,000 with a 30-year, monthly payment, amortized mortgage at a fixed 7.2% nominal interest rate, with the first payment due in one month. What will the size of their monthly payment be?

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