b) You have decided to buy an apartment costing $140,000. At present you have$10,000 to be paid as down payment and your bank CAB agrees to provide you withthe remaining amount of money. The interest rate is 12% to be repaid in 5 yearsperiod. Find the annual payment to be amortized and also prepare a schedule ofamortization.

Answer : Cost of Apartment = $140,000 Down payment = $10,000 Loan = Cost of Apartment - Down…

Answered: b) You have decided to buy an apartment…

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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for x=6
You decide to purchase your own property. The estimated purchase price is $1,600,000. You obtain 90% financing from the bank, 7% fixed rate for 25 years. How much do they have to pay the bank every year? How much do you still owe the bank in 14 years?
Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was 3.70% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3? Round to the nearest cent c. By how much will the amortization period shorten if Cassandra makes an extra payment of $30,000 at the end of year 3? years and monthsm
You plan to purchase an $80,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 8.00 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage.b. Calculate the amount of interest and, separately, principal paid in the 127th payment.c. Calculate the amount of interest and, separately, principal paid in the 159th payment.d. Calculate the amount of interest paid over the life of this mortgage.
Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the remaining portion at 3.9% compounded monthly for 30 years. (a) What will be the monthly payment? (b) How much will remain on the loan after making payments for 5 years? (c) How much interest will be paid on the total amount of the loan over the course of 30 years? (Solve with Loans and Amortization)
Suppose you borrow $1million to purchase a house. The bank offers you the fixed borrowing rate 4% APR compounded semi-annually for a 5-year term. You decide on making semi-monthly payments (every half-month) with an amortization period of 30 years. How much do you still owe at the end of the 5-year term? The answer is within $50 of the following value.
You are purchasing a home for $340,000. The down payment is 25% and the balance will be financed with a 25-year mortgage at 8% and 1 discount points. You put down a deposit of $10,000 (applied to the down payment) when the sales contract was signed. You also have these expenses: credit report, $80; appraisal fee, $140; title insurance premium, 1% of amount financed; title search, $300; and attorney's fees, $850. Find your amount due at the closing. $340,000 $81,470 $81,170 $57,655
Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine the total amount of interest you will pay on this loan. Copy the table from Step 1, make an extra principal payment of $2,000 on the first day of year two. How does this change the total interest you will pay on this loan? Create an amortization table in Excel for a new car loan for 30,000 for three years at 5%. Determine the total amount of interest you will pay on this loan. Copy the table from Step 3, change the interest rate to 2%. How does this change the total interest that you will pay on the loan? What is the total amount you will pay for the car (principal and interest) in each of the steps 1, 2, 3 and 4.
You have decided to become a homeowner with the purchase of a condominium in a newly redeveloped part of town. The condo costs $300,000 and you have a down payment of $90,000, so you will be carrying a mortgage of $210,000. If you take on a 5-year mortgage with a 25-year amortization period at a rate of 4.5% (compounded semiannually), with monthly payments, determine the following: a. Your monthly payment. b. The total interest and total principal paid over the first 5 years.
An individual wishes to purchase a house that is selling for $200,000. The person has $50,000 they can use as a down-payment towards the purchase of the house. The bank is offering a 5-year Term with an interest rate of 10% compounded monthly. The mortgage amount will be amortized over a period of 10-years. What are the individual's monthly payments? How much of the original amount of the mortgage is still outstanding at the end of the 5-year Term of the mortgage disçussed in Part 1 of this problem?
You plan to buy property in Florida 8 years from today. To do this, you estimate that you will need $ 45000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits into your savings account, which pays 9% annually. If you make your first deposit at the end ofthis year, and you would like your accountto reach$ 45000 when the final deposit is made, what amount do you need to deposit annually?
You take a loan of $50,000 loan to buy a car at an interest rate of 13% for 5years. Prepare a loan amortization table.

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