Complete the following table by using Table 15.1. (Do not round intermediate calculations. Round your answers to the nearest cent.): Selling price: $237,000 Down payment: $47,400 Amount mortgage: ?? Rate: 6.00% Years: 15 Monthly payment: ?? First payment broken down into-- Interest: ?? Principal: ?? Balance at end of month: ??
Complete the following table by using Table 15.1. (Do not round intermediate calculations. Round your answers to the nearest cent.): Selling price: $237,000 Down payment: $47,400 Amount mortgage: ?? Rate: 6.00% Years: 15 Monthly payment: ?? First payment broken down into-- Interest: ?? Principal: ?? Balance at end of month: ??
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
Related questions
Question
Complete the following table by using Table 15.1. (Do not round intermediate calculations. Round your answers to the nearest cent.):
Selling price: $237,000
Down payment: $47,400
Amount mortgage: ??
Rate: 6.00%
Years: 15
Monthly payment: ??
First payment broken down into-- Interest: ?? Principal: ??
Balance at end of month: ??
Transcribed Image Text:**Table 15-1: Amortization Table (Mortgage Principal and Interest per $1,000)**
This table provides an overview of the mortgage payments required per $1,000 of loan principal based on different interest rates and loan terms. The term is given in years and the interest rates vary from 3½% to 11%.
### Columns in the Table:
- **Term in years**: The duration of the mortgage, ranging from 10 to 35 years.
- **Interest rates**: Each column under the "Interest" section represents different interest rates starting from 3½% to 11% in increments such as 5%, 5½%, 6%, etc.
**Highlighted Example:**
- At an interest rate of 9%, for a 30-year term, the monthly payment per $1,000 of mortgage is $8.05.
### Detailed Overview:
1. **10-Year Term**:
- 3½%: $9.89
- 5%: $10.61
- 11%: $13.78
2. **20-Year Term**:
- 3½%: $5.80
- 6½%: $7.49
- 11%: $10.08
3. **30-Year Term**:
- 3½%: $4.50
- 6½%: $6.33
- 9% (Highlighted): $8.05
- 11%: $9.37
4. **35-Year Term**:
- 3½%: $3.99
- 7%: $6.39
- 11%: $9.37
### Explanation:
The figures represent the monthly principal and interest payment required for each $1,000 borrowed, based on the stated interest rate and mortgage term. For instance, as the interest rate or term increases, the monthly payments generally increase due to higher interest costs or longer repayment periods. This table aids in estimating monthly payments for budgeting and comparison of different loan options.
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!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education