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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you have just borrowed $51,107 at an annual interest of 7.6% and must repay the loan in equal installments at the end of each of the next 7 years. By how much would you reduce the amount you owe (that is, principal) at the end of the first year? (Hint: Compute annual loan payment first and then the loan amortization schedule for the first year.) Group of answer choices $5,798.23 $5,790.23 $5,792.23 $5,796.23 $5,794.23
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.
Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. ..... a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
Problem: Please answer the following questions regarding a $300,000 Mortgage Loan with monthly amortization over 30 years and an annual interest rate of 6%. What is the loan payment for a (30 year loan (360 monthly payments) of $300,000 at 6%? Question Answer What is the monthly payment amount? Loan Monthly Payment: How much interest and how much is principle on the first payment? Interest: Principle: How much interest and how much is principle on the second payment? Interest: Principle: If after the second payment an addition $10,000 was paid on principle. How much would the interest be on the third payment? Interest:
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:
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%
Use PMT = to detemine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $200,000 20-year - nt 1+ fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $E (Do not round until the final answer, Then round to the nearest cent as ccess aUbra Success Resou More
1
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?
Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are all equal to $2 Million. While analyzing the loan, you are using a YTM equal to 9%. Determine the duration of the loan. 1.94 O 2.00 O 1.91 O 3.00 O 1.83
Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ ✓Answer is complete and correct. Time b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. 1 2 3 4 Loan Balance (S) 2,400.00 2,400.00 757.13 1,882.87 x 1,314.03 688 Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance (5) 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 10 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30

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