### Table: Interest Rates for Various Time PeriodsThis table provides the interest rates (%) applied over different time periods, ranging from 5 to 40 years. Each column represents the accumulated interest rate for a specific number of years, whereas each row indicates the initial annual interest rate.#### Column Descriptions:- **Interest Rate (%)**: The base interest rate applied annually.- **5 Years**: Total interest accumulated over five years.- **10 Years**: Total interest accumulated over ten years.- **15 Years**: Total interest accumulated over fifteen years.- **20 Years**: Total interest accumulated over twenty years.- **25 Years**: Total interest accumulated over twenty-five years.- **30 Years**: Total interest accumulated over thirty years.- **35 Years**: Total interest accumulated over thirty-five years.- **40 Years**: Total interest accumulated over forty years.Each cell represents the total percentage gain in a specified number of years for a given annual interest rate.#### Example Entries:- **At a 3.50% interest rate**: - 5 Years: 18.19% growth - 10 Years: 9.89% growth - 40 Years: 3.87% growth- **At a 10.00% interest rate**: - 5 Years: 21.15% growth - 20 Years: 9.90% growth - 40 Years: 8.49% growthThis table is useful for understanding how different annual interest rates compound over various time periods, aiding in financial planning and investment strategies. ## Second Mortgage Application CalculationFor the second mortgage application, calculate the percentage of appraised value and the potential credit (in $).| Appraised Value | Lender's Percentage | Percentage of Appraised Value (in $) | Balance of First Mortgage | Potential Credit (in $) ||-----------------|---------------------|--------------------------------------|---------------------------|------------------------|| $125,500 | 60% | $ | $53,200 | $ |### Explanation- **Appraised Value**: This is the estimated market value of the property, set at $125,500.- **Lender's Percentage**: The lender is willing to offer a loan based on 60% of the appraised value.- **Percentage of Appraised Value (in $)**: To find this, multiply the appraised value by the lender's percentage. This will give the maximum loan amount based on the appraised value.- **Balance of First Mortgage**: This is the remaining balance of the first mortgage, which is $53,200.- **Potential Credit (in $)**: To calculate this, subtract the balance of the first mortgage from the percentage of appraised value (in $). This represents the additional credit available for the second mortgage.This table allows you to input calculated values to determine the potential credit for a second mortgage.

Mortgage is secured loan in which the home is collateral and is paid by monthly payments that are…

Answered: Appraised Lender's Percentage of Value…

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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ences Rental Costs. Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance Down payment, closing costs Growth in equity Estimated annual appreciation $ 7,520 152 1,050 Rental cost Buying cost Total Cost $ 10,600 ($ 9,606 is interest) 2,170 Assume an after-tax savings interest rate of 5 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost. 1,920 4,500 994 3,000
Question content area top Part 1 Make an amortization table to show the first two payments for the mortgage. Amount of mortgage Annual interest rate Years in mortgage Monthly payment $405,398 5.25% 35 $2111.08
. Estimate the duration of Loan MBank Balance SheetCash = $ 50Loan M (7%, 6 years) = $200Deposit N (3 years, 2%) = $ 200Equity = $ 50Total Assets = $250Total Liabilities = $ 250 a. 3.1 years b. 4.1 years c. 5.1 years d. 6.1 years
Buy On Time or Pay Cash Cost of Borrowing 1. 2. 3. 4. 5. 6. 7. 8. Cost of Paying Cash 9. 10. Terms of the loan a. Amount of the loan b. Length of the loan (in years) c. Monthly payment Total loan payments made ($ per month Less: Principal amount of the loan Total interest paid over life of loan Tax considerations: - Is this a home equity loan? - Do you itemize deductions on your federal tax return? What federal tax bracket are you in? Taxes saved due to interest deductions ($ %) Total after-tax interest cost on the loan X months) Annual interest earned on savings (6% X Annual after-tax interest earnings ($ %) X $10,000.00 5 $188.70 no yes 35% $ $ $ 00 00 $
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) Finance Charge per $100 Number of Monthly Payment Amount Finance APR Financed Payments Charge $14,000 $489.00 $ 36 %
find the interest, interest rate,monthly payment, and the new principal.
Mortgage Information: Interest Only Payments Initial Loan Amount: $22,000 Fully Amortizing Term: 30 years Fixed rate interest rate: 3.25% Fees at origination: 3rd party fees: $750. What are the monthly payments? O.a $59.58 O.b $131.91 O.c $715.00
AmountFinanced Number ofPayments MonthlyPayment FinanceCharge APR $18,300 72 $426.08 $ %
For the appraised Valve Appraised Nice 356,700 Second Mortgage Application Calculate the percentage and potential Credit? Lenders 75% 1st Percentage of Approved Value Balance of first Mortgage 194, 500 OF Potential credit) in (1)
Name Principal Interest rate Total Interest per year Term (in Total months) Interest to be paid Total loan amount to be paid I Peter $3500 5% 36 Rich 2700 4.5% 48 Julio 4200 7% 24 Mary 6800 6% 18 Robert 3000 5.5% 8. Nora 5500 8.75% 6. Jacky 4750 9.5% 11 Ted 7500 6.5% 36 Marvin 14000 7.5% 40 Oli 18000 5% 48
Find the future value of the loan. $200 loan at 7% for 9 months OA. $210.50 OB. $1,010,50 OC. $128.00 OD. $215.50
TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 6 12 18 24 30 36 42 48 54 60 7.50% $ 170.34 86.76 58.92 45.00 36.66 31.11 27.15 24.18 21.88 20.04 8.00% $ 170.58 86.99 59.15 45.23 36.89 31.34 27.38 24.42 22.12 20.28 8.50% $ 170.83 87.22 59.37 45.46 37.12 31.57 27.62 24.65 22.36 20.52 9.00% $ 171.20 87.46 59.60 45.69 37.35 31.80 27.85 24.77 22.59 20.76 10.00% $ 171.56 87.92 60.06 46.14 37.81 32.27 28.32 25.36 23.07 21.25 10.50% $ 171.81 88.15 60.29 46.38 38.04 32.50 28.55 25.60 23.32 21.49 11.00% $ 172.05 88.38 60.52 46.61 38.28 32.74 28.79 25.85 23.56 21.74 11.50% $ 172.30 88.62 60.75 46.84 38.51 32.98 29.03 26.09 23.81 21.99 12.00% $ 172.55 88.85 60.98 47.07 38.75 33.21 29.28 26.33 24.06 22.24 12.50% $ 172.80 89.08 61.21 47.31 38.98 33.45 29.52 26.58 24.31 22.50 13.00% $ 173.04 89.32 61.45 47.54 39.22 33.69 29.76 26.83 24.56 22.75 13.50% $ 173.29 89.55 61.68 47.78 39.46 33.94 30.01 27.08 24.81 23.01…

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Appraised Lender's Percentage of Value Percentage Appraised Value (in $) $125,500 60% LA Balance of First Mortgage $53,200 $ LA Potential Credit (in $)