Answered: Calculate the monthly mortgage payment…

Calculate the monthly mortgage payment made at the beginning of eachmonth on a $100,000 mortgage. The mortgage is for 15 years and the interestrate is 5.5 percent.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

See similar textbooks

Related questions

Q: If an adjustable-rate 30-year mortgage for $120,000 starts at 4.0 percent and increase to 5.5…

A: interest rate =4% Period =30 years Loan amount =120000 Present value FACTOR =1-(1+r)^-n/r Present…

Q: You secure a 20 -year FRM with an APR of 5.75 % on a mortgage loan of $190,000 . Rounded to the…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

Q: Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed…

A: The sum of the monthly principal and interest payment is equal to the equal payments which the…

Q: Determine the monthly principal and interest payment for a 15-year mortgage when the amount…

A: The monthly payment on a loan includes the payment towards the loan amount as well as the interest…

Q: Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments…

A: Loan amount = $ 1000 Monthly payment = $ 5.37 Period = 30 Years Number of payments = 30*12 = 360

Q: You buy a house for $800,000. It is a 20 Year mortgage where the payments are made quarterly and at…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: For a 30-year house mortgage of $125,000 at 4.2% interest, find the following. (Round your final…

A: Mortgage on house = $125,000 Time period = 30 years Interest Rate = 4.2% The monthly interest rate…

Q: A 30-year mortgage requires payments of $5,455.84 at the end of each month. If interest is 3.23%…

A: Data given: PMT= $5455.84 Interest = 3.23% (compounded semi-annually) n=30 year nper=30*2 = 60…

Q: What will be the monthly payment on a home mortgage of $75,000 at 12% interest, to be amortized over…

A: Loan amount (P) = $75,000 Interest rate = 0.12 Monthly interest rate (i) = 0.01 (i.e. 0.12 / 12)…

Q: alance on a mortgage was $48,200 and an interest rate of 4.50% compounded semi-annually was charged…

A: Loans are paid by the equal monthly payments that carry the payment for interest and payment for…

Q: Rounded to dollars and cents, what will be the monthly payment on a $75,000 30-year home mortgage at…

A: The PMT function can be used to derive the number of monthly payments that may be required to…

Q: A $385,000 house is to be purchased for 25% down and monthly payments of $1200 for as long as…

A: Calculate effective annual rate = (1+nominal rate/no. of compounding)^ no. of compounding -1…

Q: Consider a home mortgage of $150,000 at a fixed APR of 6% for 25 years. a. Calculate the monthly…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Calculate the finance charge and the monthly payment on a $20,000 add-on installment loan with an…

A: The equivalent cost is the periodic payment made towards the acquisition of an asset or security for…

Q: You buy a house for $1,200,000 using a 30-year mortgage. The annual interest rate is 3%. Payments…

A: Using excel PV function

Q: an for the first 5 years (i.e., first 60 monthly payments). Subseque age will become a standard…

A: For first 5 years Loan payment=750000 interest rate =3.6% monthly interest =3.6/12=0.3% monthly…

Q: What is the monthly house payment on a 10 year $225,000 mortgage at 7.5% annual interest?

A: Given details are : Amount of loan (Present value) = $225000 Time period = 10 years Interest rate =…

Q: The adjustable rate mortgage is for 15 years with monthly payments. Loan amount is $120,000. During…

A: Given: Loan amount = $120,000 Loan term = 15 Years First 8 years interest rate is 5% Last 7 years…

Q: Consider a£100,000 mortgage paying a fixed annual rate of 5% which is com- pounded monthly. What are…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: A mortgage of $192,000 is to be repaid by making payments of $1194 at the end of each month. If…

A: The term of the mortgage can be found using the NPER function in excel.

Q: Ms. Colonial has just taken out a $150,000 mortgage at an interest rate of 6 percent per year. If…

A: Given: Mortgage amount =$150000 Interest rate =6% per yearTotal years of Monthly payments =20…

Q: A 25 year mortgage requires payments of $3443.75 at the end of each month. If interest 5.84%…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: Consider a 20-year mortgage for $182,892 at an annual interest rate of 5.3%. After 7 years, the…

A: Mortgage is an amount which is borrowed from external sources like a bank for a specific period.…

Q: Calculate the original loan size of a fixed-payment mortgage if the monthly payment is $1,146.78,…

A: The question can be solved as follows:

Q: You secure a 20 -year FRM with an APR of 5.75 % on a mortgage loan of $ 190, 000 . Rounded to the…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

Q: Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed…

A: Excel Spreadsheet:

Q: Consider a mortgage on a house valued at $480,000 with an interest rate of 6% compounded…

A: Mortgage loan: These loans are issued with the nominal rate that is compounded semi-annually,…

Q: Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 30 years. a. Calculate the monthly…

A: Principal amount (or present value, PV)=$125,000 APR=4.5% Time=30 years a. Monthly payments can be…

Q: Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at…

A: Amortised Schedule is the table showing the loan repayment schedule which contains the Installment…

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5 3/4 %…

A: Mortgage amount (PV) = $ 46000 Interest rate = 5 3/4% = 5.75% Monthly interest rate (r) = 5.75%/12 =…

Q: What is the monthly house payment on a 10 year $210,000 mortgage at 7% annual interest?

A: In the above problem we needs to calculate the monthly payment on mortgage of $210000

Q: Consider a $100,000, 30-year, 6.2% mortgage with monthly payments. What portion of the payments…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: You are getting a mortgage. Your home is worth $237,324, and you will make a $63,651 down payment.…

A: Cost of home= $ 237324 Down payment done= $ 63651 Loan= $ 237324- $ 63651 =$ 173673

Q: A home mortgage extends for 20 years at 8 percent interest compounded monthly, the payments are also…

A: A home mortgage is an arrangement to pay back in an equal periodic instalment. The instalment amount…

Q: Calculate the monthly payment for a mortgage of $180,000 with rate of 4% over a period of 15 years.…

A: Given: Years = 15 Loan = 180,000 Interest rate = 4%

Q: Calculate the monthly mortgage payments under the following conditions: $325,000 mortgage, 3.125%…

A: Here, Mortgage Amount is $325,000 Interest Rate is 3.125% Time Duration is 30 years

Q: The Clarks are arranging a $90,000 mortgage loan from their bank. The mortgage is to be amortized by…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Complete the first two months for a mortgage of $ 450 000 for 15 years at a constant rate of 4.5 %

A: A mortgage is a loan on a property in which the property itself is held as collateral.

Q: Determine the monthly principal and interest payment for a 20-year mortgage when the amount…

A: Monthly interest and payment can be calculated using PMT function in excel PMT(rate, nper, pv, [fv],…

Q: Consider a 30-year, $115,000 fixed-rate mortgage with a nominal annual rate of 4.65 percent. All…

A: 1)-Amount of loan =$115000Number of monthly payments,n=30 years *12…

Q: ABC purchased a piece of property for $3,000,000. The loan terms require monthly payments at the…

A: Cost of property (P)= $3,000,000 Loan term (n)= 15 years (monthly payments at the beginning of each…

Q: Find the monthly payment needed to amortize a typical $115,000 mortgage loan amortized over 30 years…

A: Loan amount (PV) = $115,000 Period = 30 Years Number of payments (n) = 30*12 = 360 Interest = 5.7%…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Calculate the monthly mortgage payment made at the beginning of each
month on a $100,000 mortgage. The mortgage is for 15 years and the interest
rate is 5.5 percent.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You entered into a 2-year mortgage for $500,000. The mortgage has a 9 percent interest rate compounded semiannually. Loan repayment is made at the end of every three months. What will be the remaining balance on the mortgage after three years?
Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed is $65,000 and the annual percentage rate (APR) is 8.0%. the monthly principal and interest payment is $_____.
Calculate the monthly payment of a $750,000 mortgage. The mortgage has an amortization of 25 years. The interest rate for a 5-year term mortgage is 5.70% compounded semi-annually not in advance.
Consider a home mortgage of $150 comma 000 at a fixed APR of 4.5 % for 20 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.
Consider a home mortgage of $225,000 at a fixed APR of 3% 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.
Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance. Twenty-year mortgage for $280,000 at 3.78%; remaining balance after 12 years.
Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed is $75,000 and the annual percentage rate (APR) is 8.0%. The monthly principal and interest payment is? round to nearest cent
A $127,000 mortgage has a 30-year term and a 10% nominal interest rate. (a) What is the monthly payment? (b) After the first year of payments, what is the outstanding balance? (c) Calculate the interest and principal amount for the first month mortgage payment.
Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed is $95,000 and the annual percentage rate (APR) is 5.0%. The monthly principal and interest payment is S (Round to the nearest cent as needed.)
Determine the monthly principal and interest payment for a 15 -year mortgage when the amount financed is $85,000 and the annual percentage rate (APR) is 7.0%. The monthly principal and interest payment is $ (Round to the nearest cent as nếeded.)
Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed is $85,000 and the annual percentage rate (APR) is 7.0%
You buy a house for $800,000. It is a 20 Year mortgage where the payments are made quarterly and at the beginning of each quarter. If the annual interest rate is 8% find the total principal and interest repaid in year 17.