Assume a $175,000 mortgage loan and 10-year term. However, monthly payments will be based on a 30-year amortization schedule. The lender is charging an annual interest rate of 6 percent. Total up-front financing costs, including payments to third parties, equal 4 percent of the loan amount. Required: a. What is the monthly payment? b. What will be the required balloon payment at the end of the 10th year? c. What is the effective borrowing cost on the loan if it is held to maturity? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the monthly payment? Note: Round your answer to 2 decimal places. Monthly payment S 1,049.37 x < Required A Required B >

Assume a $175,000 mortgage loan and 10-year term. However, monthly payments will be based on a 30-year amortization schedule. The lender is charging an annual interest rate of 6 percent. Total up-front financing costs, including payments to third parties, equal 4 percent of the loan amount. Required: a. What is the monthly payment? b. What will be the required balloon payment at the end of the 10th year? c. What is the effective borrowing cost on the loan if it is held to maturity? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the monthly payment? Note: Round your answer to 2 decimal places. Monthly payment S 1,049.37 x < Required A Required B >

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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Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 34000 at the time you start repayment, the interest rate is 7.5% APR, and you elect the standard repayment plan of a fixed amount each month for 10 years. What is your monthly repayment? Repayment amount = How much will you pay in interest?Interest paid =
Determine the annual payment on a OMR15,000 loan that is to be amortized over a four-year period and carries a 10 percent interest rate. Also prepare a loan amortization schedule for this loan.
Find the monthly payment needed to amortize a typical$210,000 mortage loan amortized over 30 years at an annual interest rate of 4.1% compounded monthly. (round your answer to the nearest cent) Find the total interest pain on the loan
Establish loan amortization schedules for 3- year loan of 20.000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year? show how you compute each of the items
Prepare the amortization schedule for a 30 year loan of $100,000. Interest rate is 3% compounded monthly and the loan calls for monthly payments. Please answer very soon will give rating surely
A $150,000 loan is to be amortized over 6 years, with annual end-of-year payments. Which of these statements is CORRECT? The proportion of interest versus principal repayment would be the same for each of the 7 payments. The annual payments would be larger if the interest rate were lower. If the loan were amortized over 10 years rather than 6 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 6-year amortization plan. The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower. The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher.
An mortgage of $200000 is amortized at 30 years, with an interest rate of 3.5% compounded semi-annually and a term of 4 years. If monthly payments are chosen - what is the amount of the monthly payment? Your Answer:
A floating rate mortgage loan is made for $120,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $960. 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 $960?
TVM Calculate the required monthly payments for: 1) a 30-year mortgage loan at an annual rate of 3.75%; and 2) a 15-year mortgage loan at an annual rate of 3.25%. Assume both mortgage loans are $100,000. 3) Which loan will have the lowest loan balance in exactly 5 years (60 months), and what is the balance?
Assume you have taken out a partially amortizing loan for $1,000,000 that has a term of 7 years, but amortizes over 20 years. Calculate the balloon payment if the interest rate on this loan is 10%
A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment is made one year after the time of the loan and construct an amortization schedule and determine the size of the last payment interest rate=10% per annum time=3 years
A floating rate mortgage loan is made for $190,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $1,520. 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 $1,520?

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