Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end, of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 b) $102,000

Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end, of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 b) $102,000

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

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Give typing answer with explanation and conclusion to all parts Your bank has pre-approved a mortgage for the purchase of a home. The bank calculates that you can make monthly payments of up to 40% of your salary, which is $78,000 annually. The bank charges a 1.5% closing fee on the mortgage which must be paid up-front (when the mortgage closes). The interest rate quoted on the mortgage is 6.60% per annum for a 25-year loan. a. Up to what net amount will the bank lend you? b. The APR of this loan is 6.60%, but what is the effective annual rate (EAR)? c. How much will still be due after 3 years?
House Mortgage Suppose you purchase a house for $592,978 and make a down payment of 14% of the purchase price. The balance is amortized over 22 years. The house mortgage agreement is subject to 3.3479% compounded semi-annually for the first four years and requires equal monthly payments. What is the size of the equal monthly payments for the first four years? What is the house mortgage balance at the end of the four years? Perform this calculation using Excel, without an amortization schedule. After four years, the house mortgage is refinanced at a reduced nominal rate of 3.1469% compounded semi-annually and the house mortgage is amortized over the remainder of the term. What is the size of the new mortgage payments for the remainder of the term? What is the size of the final loan payment? Perform this calculation in Excel, without an amortization schedule. Prepare one complete amortization schedule showing the mortgage amortized over the full 22-year period (reflecting the change in…
A house sells for $309,500 and a 4% down payment is made. A mortgage is secured at 4% for 20 years. Compute an amortization schedule for the first 3 months. Round your answers to two decimal places, if necessary. The value of the mortgage is $297,120 and the monthly payment is $1800.55 . Part: 0 / 3 0 of 3 Parts Complete Part 1 of 3 Payment number Interest Payment on Principal Balance of Loan 1 $ $ $ Procedure for Computing an Amortization Schedule Step 1 Find the interest for the first month. Use =IPrt , where =t112 . Enter this value in a column labeled Interest. Step 2 Subtract the interest from the monthly payment to get the amount paid on the principal. Enter this amount in a column labeled Payment on Principal. Step 3 Subtract the amount of the payment on principal found in step 2 from the principal to…
For the following loan, calculate the monthly payment and then complete the partial amortization schedule for the first three months. A home mortgage of $161,000 with a fixed APR of 3% for 30 years. Round all final answers to the nearest cent as needed. a) The monthly payment including principal and interest would be $ b) Complete the partial amortization table for the mortgage. End of.. Month 1 Month 2 Month 3 Interest Payment Toward Principal $ Outstanding Balance GA
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.
please answer asap!! a $164,000 mortgage for 30 years for a new home is obtained at the rate of 6.5% compounded monthly. Find (a) the monthly payment, (b) the interest in the first payment, (c) the principal repaid in the first payment, and (d) the finance charge. please do not provide solution in image format thank you.
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.)
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