The interest rate for a mortgage loan is 3.25% compounded semi-annually. The loawas needed to purchase a $112,500 cabin, but the buyer was able to make a 20%down payment, and borrow the balance. If monthly payments are calculated using20-year amortization, what would be the size of the new monthly payments if themortgage is renewed after 5 years at 2.95% compounded semi-annually?BIU A,Formatof19.PMTSettingI/YP/Y

In this we need to calculate the present value factor and from that we can calculate the monthly…

ed to purchase a $112,500 cabin, but the buyer was able to ment, and borrow the balance. If monthly payments are calc amortization, what would be the size of the new monthly payr e is renewed after 5 years at 2.95% compounded semi-annual

ed to purchase a $112,500 cabin, but the buyer was able to ment, and borrow the balance. If monthly payments are calc amortization, what would be the size of the new monthly payr e is renewed after 5 years at 2.95% compounded semi-annual

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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General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 4.50% compounded semi-annually. It made payments of $2,850.75 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two Question 3 of 7 b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 Payment Interest Portion Principal Portion Principal Balance $45,500.00 11
General Computers Inc. purchased a computer server for $57,500. It paid 35.00% of the value as a down payment and received a loan for the balance at 10.50% compounded semi-annually. It made payments of $2,450.35 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? 0 payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number Payment Interest Portion Principal Portion Principal Balance 0 $37,375.00 1 $0.00 $0.00 $0.00 $0.00 2 $0.00 $0.00 $0.00 $0.00 : : : : : :
Can you show complete solutions for the first three questions?
A property owner has set up a contract in which he agrees to sell a warehouse 5 years from now to the tenant who currently leases the space. The tenant has agreed to continue to pay $20,000 in rent at the end of each year, including year five, at which time he will purchase the building for an additional $1,500,000. Assuming the required rate of return on a similar investment is 10% (annual), how much is this deal presently worth to the original owner of the property? $1,014,779.2 $1,007,197.20 $2,281,452.80 $2,293,663.00
Givens, Hong, and Partners obtained a $8,100 term loan at 9.6% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest number Payment $ portion $ 0 DLN3 456 1 2 1624.80 1624.80 1624.80 1624.80 1624.80 1624.80 Principal portion $ Principal balance $ 8,100.00
After two years in business, the owners have saved (have a surplus of) $123,750.00. They must decide if they will invest in property or investment bonds. If they invest in a property and a vehicle, the total cost will be $445,500,00, of which $123,750.00 will be required as a down payment. The fixed interest rate on the mortgaged amount is 5.40% compounded semi-annually for a term of 13 years. 5. What is the size of the semi-annual payments required to settle this mortgage? 6. What is the size of the final payment? 7. How long would it take (in months) to settle this loan with regular monthly payments of exactly $2000 instead of the PMT value calculated in Part 5?
Mr. Dickenson Comperstaugh bought an old model Ferrari car for 1,000,000.00 pesos down payment and 10 deferred semiannual payments of 150,000.00 peso starting 3 years from now. If the interest rate is 12%ocompounded semi-annually, what is the present worth of the car?
Mr. Anton received two offers for the old equipment he is selling. Mr. Brando will pay P6,500 in cash. Mr. Castilla will pay P7,000 consisting of a down payment of P1,000 and 12 monthly payments of P500. If the installment interest rate is 24% compounded monthly, which offer should Mr. Anton accept? note: Kindly show the step-by-step solution including how the present value was calculated.
Dr Musonda is struggling to repay his loan of K600,000 with payments of K12,800made monthly in arrears for 5 years.After exactly one year, a loan company offers to “help” Dr Musonda by restructuring his loan with new monthly payments of K9,000 made in arrears.(i) Assuming the company charges the same APR as Dr Musonda’s original loan,calculate the term of the new loan.(ii) Calculate how much more interest in total Dr Musonda will pay on his restructured loan than on his original loan.
Mr. Marc Pogi wish to purchase a house and lot in San Carlos City worth 2,200,000 pesos and the seller requires a 15% down payment. Then Mr. Marc Pogi will loan 6.5% monthtly interest rate to be paid for 20 years. Answer the following questions and find the unknown value needed in the amortization table below for the first 6 months of payment. Period Monthly Amortization Interest Principal Outstanding Balance 1 A? 2 3 c? 4 B? D?

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