Dante has a mortgage of $700,000 through the Meridian Bank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 4.6% compounded monthly for a term of 2 years, amortized over 20 years. At the end of the 2-year term, Dante will renew the mortgage for another 2-year term at a new, lower interest rate of 3.5% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? C/Y = P/Y = I/Y= P1 = % 2) What is the balance when the mortgage is renewed? P/Y = I/Y = PV = $ PMT = $ (enter the rounded value into the calculator) % P2= 3) What will be the new end of month payments after the mortgage is renewed? C/Y = PV = $ N= PMT= $ FV = $ BAL = $ Enter a positive value. N = FV = $

Dante has a mortgage of $700,000 through the Meridian Bank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 4.6% compounded monthly for a term of 2 years, amortized over 20 years. At the end of the 2-year term, Dante will renew the mortgage for another 2-year term at a new, lower interest rate of 3.5% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? C/Y = P/Y = I/Y= P1 = % 2) What is the balance when the mortgage is renewed? P/Y = I/Y = PV = $ PMT = $ (enter the rounded value into the calculator) % P2= 3) What will be the new end of month payments after the mortgage is renewed? C/Y = PV = $ N= PMT= $ FV = $ BAL = $ Enter a positive value. N = FV = $

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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Erwin and Eleni have an outstanding mortgage balance of $175,000. They have 14 months remaining on their mortgage at a fixed-rate of 4.5% compounded semi-annually on their five-year (60 month) mortgage term. The current five-year fixed rate of interest for a mortgage is 3.1%, compounded semi-annually. They would like to “blend and extend” their existing mortgage for another five-year term. What rate would they be charged under a blend-and-extend option?
Juwen obtained a 25-year residential mortgage at 4.75% compounded semiannually for a 5-year term. If the initial loan was $381,500 how much will the monthly mortgage payments be?
Erin has a mortgage of $640,000 through the Tangerine Bank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 5.3% compounded monthly for a term of 5 years, amortized over 25 years. At the end of the 5-year term, Erin will renew the mortgage for another 5-year term at a new, lower interest rate of 4.4% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? P/Y = 12 I/Y = 0.4 P1 = 640,000 X x% P/Y = 12 2) What is the balance when the mortgage is renewed? I/Y = 0.03 C/Y = 12 PV = $ 640,000 x% PMT= $3,854.09 (enter the rounded value into the calculator) P2= 70,408.34 X 3) What will be the new end of month payments after the mortgage is renewed? C/Y = 12 PV = $5,69,591.66 X N = 300 PMT $3,572.84 FV = $0 BAL= $5,69,591.66 x Enter a positive value. N = 240 FV = $0
Karen obtained a $25.000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay the loan in 7 1/2 years? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Monthly payment $4 a-2. How much interest will Karen pay over the life of the loan? (Round Intermedlate calculations to 2 declmal places and round your final answer to the nearest dollar.) Total interest %$4 6 of 9 Next > < Prev connect T
Tim Huston purchased a wall unit for $2,200. He made a $600.00 down payment and financed the balance with an installment loan for 48 months. If Tim’s payments are $42.59 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places)
Chad purchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a mortgage for the rest of the amount at 6.25% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. a. Calculate the principal balance at the end of the 5-year term. b. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 6.00% compounded semi-annually?
Michael Sanchez purchased a condominium for $83,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. PaymentNumber MonthlyPayment(in $) MonthlyInterest(in $) Portion Usedto ReducePrincipal(in $) LoanBalance(in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,610 and the hazard insurance premium is $760 per year, what is the total monthly PITI of Michael's loan (in $)? $ Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments(Necessary to amortize a loan of $1,000) InterestRate (%) 5Years 10Years 15Years 20Years 25Years 30Years 35Years 40Years…
Marcel Thiessen purchased a home for $205, 700 and obtained a 15-year, fixed - rate mortgage at 10% after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answer to the nearest cent.)
Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $43.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
Felix is purchasing a brownstone townhouse for $2,300,000. To obtain the mortgage, Felix is required to make a 16% down payment. Felix obtains a 25-year mortgage with an interest rate of 6.5%. a) Determine the amount of the required down payment. b) Determine the amount of the mortgage. c) Determine the monthly payment for principal and interest.
On September 1, the home mortgage balance was $262,000 for the home owned by Kim Thompson. The interest rate for the loan is 8 percent. Assuming that Kim makes the September monthly mortgage payment of $2620 , calculate the following: (a) The amount of interest included in the September payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Kim makes this monthly mortgage payment.
Noel purchases a house and gets a 15-year mortgage for $155,000 at 4.75% APR. In addition to the monthly payment, the lender requires him to pay into an escrow account for the homeowners insurance and property tax. His homeowners insurance is $1100 per year and the property tax is $1500 per year. Determine the monthly payment to the lender that includes the insurance and property tax. Round your answer to the nearest cent.

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