(b) A young couple plans to buy a property whose price is £450,000. Theyhave a deposit of £150,000, the rest will be covered by a mortgage, forwhich the bank charges a fixed annual interest rate of 1.7% compoundedmonthly.(i) Assuming that they want to repay the mortgage in 25 years, whatshould be the monthly repayment?(ii) If they can only afford a monthly repayment of £1000, how long willit take to repay the mortgage?3]

Answered: Image /qna-images/answer/b550377f-23f0-4fbc-9c05-0fab7e49019b.jpg

Answered: (b) A young couple plans to buy a…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

2. Alanna plans to add an extension on to her home. She applied for a loan of $30 000. Loans are available for five years at 8.9% per year, compounded monthly.
5. The price of a house is 400000. Then, you make a down payment of 130000 and take a 30-year mortgage at 4% per annum for the balance. How much will be your monthly payment?
You won 2nd place in the Wintario Lottery and just received your $375,000 cheque today! You have decided to deposit all the funds into your 6 ¼ % compounded annually savings account AND start making end of month withdrawals. If you would like the monthly payments to last exactly 30 years (before the money runs out): (4) a. How large can those monthly payments (or withdrawals) be? b. How much interest would you earn over the 30 years?
2. Find the rate of interest i such that a 20-year annuity with payments at the end of each year has the accumulated value which is exactly three times as much as the accumulated value of a 10-year annuity with payments at the end of each year.
2. Suppose that you take an add-on loan for $24,000 at an annual rate interest of 5.45% to be repaid in semi-annual (six-month) installments over two years. How much will semi-annual payments be? Use the close-end method.
You wish to retire at age 50 and receive annual birthday payments of $40,000 beginning on your 50th birthday and continuing forever (with payments going to your heirs after your death). To this end, you save in an account earning a 4% annual effective interest rate. How much money will you need to have saved by age 50, at the instant prior to your 50th birthday payment?
Problems 23 – 27: Anthony is buying a house for $205,000. He is going to make a down payment of 15% of the purchase price. To pay for the remaining cost of the house, he will need to take out a 20-year mortgage loan with an interest rate of 3.75%. _23. What is the amount of Anthony's down payment? _24. What is the amount of Anthony's mortgage loan? _25. What is Anthony's monthly payment? 26. How many monthly payments will Anthony make in order to pay off this loan? 27. How much interest will Anthony have paid at the end of this loan?
You are chairperson of the investment fund for the Continental Soccer League. You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum of $210,000 after eight years at a 10 percent annual rate (16 payments). The first payment into the fund is to take place six months from today, and the last payment is to take place at the end of the eighth year. Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. Determine how much the semiannual payment should be. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Semi-annual payment On the day after the sixth payment is made (the beginning of the fourth year), the interest rate goes up to an annual rate of 12 percent. This new rate applies to the funds that have been accumulated as well as all future payments into the fund. Interest is to be compounded semiannually on all…
You take out an adjustable rate mortgage for $100,000 for 20 years. For the first 5 years, the rate is 4%. It then rises to 6% for the next 10 years, and then 7% for the last 5 years. What are your monthly payments in the first 5 years, the next 10 years, and the last 5 years? (Assume that each time the rate changes, the payments are recalculated to amortize the remaining debt if the interest rate were to remain constant for the remaining life of the mortgage. Round your answers to the nearest cent.) payments for the first 5 years$ payments for the next 10 years$ payments for the last 5 years
17) Determine the simple Interest Rate applied to a Principle of $100,250 over 10 years if the total interest paid equals the Principal.
1. Say for instance you buy a house for 250,000. Then, you make a down payment of 15% of the purchase price and take a 30-year mortgage at 6% per annum for the balance. How much will he be paying every month? (Round to the nearest hundred, example, for 2435, your answer will be 2400, do not include the value of cents.)

Recommended textbooks for you

Advanced Engineering Mathematics

Advanced Math

ISBN:

9780470458365

Author:

Erwin Kreyszig

Publisher:

Wiley, John & Sons, Incorporated

Numerical Methods for Engineers

Advanced Math

ISBN:

9780073397924

Author:

Steven C. Chapra Dr., Raymond P. Canale

Publisher:

McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…

Advanced Math

ISBN:

9781118141809

Author:

Nathan Klingbeil

Publisher:

WILEY

Advanced Engineering Mathematics

Advanced Math

ISBN:

9780470458365

Author:

Erwin Kreyszig

Publisher:

Wiley, John & Sons, Incorporated

Numerical Methods for Engineers

Advanced Math

ISBN:

9780073397924

Author:

Steven C. Chapra Dr., Raymond P. Canale

Publisher:

McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…

Advanced Math

ISBN:

9781118141809

Author:

Nathan Klingbeil

Publisher:

WILEY

Mathematics For Machine Technology

Advanced Math

ISBN:

9781337798310

Author:

Peterson, John.

Publisher:

Cengage Learning,

Basic Technical Mathematics

Advanced Math

ISBN:

9780134437705

Author:

Washington

Publisher:

PEARSON

Topology

Advanced Math

ISBN:

9780134689517

Author:

Munkres, James R.

Publisher:

Pearson,

SEE MORE TEXTBOOKS