Assume that the mortgage is a 30-year adjustable rate mortgage. a) Use the table to find the monthly mortgage payments. b) Make a rough estimate of your monthly payments for year 3 by recalculating the monthly payments for a 30-year mortgage for the original amount at the new interest rate. P = $140,000; beginning interest rate, 4%; rate increases 7% then 1% Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payments for this loan are S (Type an integer or a decimal.) b. A rough estimated of monthly payment for year 3 is $ (Type an integer or a decimal) 4 Monthly Payment on a $1,000 loan
Assume that the mortgage is a 30-year adjustable rate mortgage. a) Use the table to find the monthly mortgage payments. b) Make a rough estimate of your monthly payments for year 3 by recalculating the monthly payments for a 30-year mortgage for the original amount at the new interest rate. P = $140,000; beginning interest rate, 4%; rate increases 7% then 1% Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payments for this loan are S (Type an integer or a decimal.) b. A rough estimated of monthly payment for year 3 is $ (Type an integer or a decimal) 4 Monthly Payment on a $1,000 loan
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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Gg.15.
Transcribed Image Text:Assume that the mortgage is a 30-year adjustable rate mortgage. a) Use the table to find the monthly mortgage payments. b) Make a rough estimate of your monthly payments for year 3 by recalculating the monthly payments for a 30-year mortgage for the original amount at the new interest rate.
P = $140,000; beginning interest rate, 4%; rate increases 7% then 1%
Click the icon to view a table of monthly payments on a $1,000 loan.
a. The monthly payments for this loan are $
(Type an integer or a decimal.)
b. A rough estimated of monthly payment for year 3 is $
(Type an integer or a decimal.)
Monthly Payment on a $1,000 loan
Annual Interest Rate
4%
5%
6%
8%
10%
12%
Number of Years for the Loan
4
3
10
20
$29.53 $22.58 $10.12 $6.06
29.97 23.03 10.61
30.42 23.49 11.10
6.60
7.16
31.34 24.41 12.13
8.36
9.65
32.27 25.36 13.22
33.21 26.33
14.35 11.01
Print
C
Done
30
$4.77
5.37
6.00
7.34
8.78
10.29
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