couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They Duchased their home 10 years ago for $78,815. The home was financed py paying 20% down and signing a 30-year mortgage at 9% on the unpaid balance. Equal monthly payments were made to amortize the pan over the 30-year period. The net market value of the house is now $100,000. After making their 120th payment, they applied to the can company for the maximum loan. How much (to the nearest dollar) vill they receive?
couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They Duchased their home 10 years ago for $78,815. The home was financed py paying 20% down and signing a 30-year mortgage at 9% on the unpaid balance. Equal monthly payments were made to amortize the pan over the 30-year period. The net market value of the house is now $100,000. After making their 120th payment, they applied to the can company for the maximum loan. How much (to the nearest dollar) vill they receive?
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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Ajay
Transcribed Image Text:A couple wishes to borrow money using the equity in their home for
collateral. A loan company will loan them up to 70% of their equity. They
puchased their home 10 years ago for $78,815. The home was financed
by paying 20% down and signing a 30-year mortgage at 9% on the
unpaid balance. Equal monthly payments were made to amortize the
loan over the 30-year period. The net market value of the house is
now $100,000. After making their 120th payment, they applied to the
loan company for the maximum loan. How much (to the nearest dollar)
will they receive?
Amount of loan: $
***
(Round to the nearest dollar.)
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