Fifteen years ago a couple purchased a house for $180,000.00 by paying a 20% down payment and financing the remaining balance with a 30-year mortgage at 5.58% compounded monthly. (a) Find the monthly payment for this loan. Monthly Payment: $ (b) Find the balance of the loan after 13 years and after 14 years. Let m be how many payments are left on the loan. After 13 years After 14 years Loan Balance: S Interest Paid During 14th year: $ Loan Balance: $ (c) Find the total amount of interest paid by the couple during the 14th year,

Fifteen years ago a couple purchased a house for $180,000.00 by paying a 20% down payment and financing the remaining balance with a 30-year mortgage at 5.58% compounded monthly. (a) Find the monthly payment for this loan. Monthly Payment: $ (b) Find the balance of the loan after 13 years and after 14 years. Let m be how many payments are left on the loan. After 13 years After 14 years Loan Balance: S Interest Paid During 14th year: $ Loan Balance: $ (c) Find the total amount of interest paid by the couple during the 14th year,

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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C. Assume Ron and his wife Julie, two young professionals, just bought a house for $600,000. They made a $100,000 down payment and borrowed the remainder at 4.25% fixed interest compounded monthly for 30 years. What will be Ron and Julie's monthly house payment on this amortizing loan?
to purchase a home a couple borrowed $280,000 at 5.1% compounded monthly for 25 years. after making 70 payments of $1653. 21 they plan to refinance at 4.2% compounded monthly for 15 years , with refinancing costs of $1100 added to the new loan. a) Find the amount refinance b) find the new monthly statement. c) If payments are $2000 per month on the refinance loan, how long will it take to pay off the loan? d) How much is saved in total by refinancing and making monthly payments of $ 2000 on the financing amount?
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A family needs to take out a 15-year home mortgage loan of $170,000 through a local bank. Annual interest rates for 15-year mortgages at the bank are 3.5% compounded monthly. (a) Compute the family's monthly mortgage payment under this loan. (b) How much interest will the family pay over the life of the loan?
A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years. 1. What is the monthly payment? 2. What is the current loan balance? 3. Assume this is homeowner has been offered a chance for refinance for the amount at the current balance for 22 years at 10.5% interest rate. What is the monthly payment if the homeowner chooses to refinance? 4. If the origination fees and closing costs are $25,500, and the costs are not financed by the lender. What is the effective cost of refinancing? Should this homeowner refinance? 5. If this homeowner plans to sell the house in 5 years, should this homeowner refinance (show your answer with the effective annual rate)? use excel to get the answers and show the formulas
Suppose that a house was purchased with the buyer taking out a 20 year,$350,000 mortgage at 3% interest compounded monthly.(i) What will the monthly payments be?(ii) Find the total amount of interest paid when the loan is amortized over 20 years.
Fifteen years ago, the Budai family bought a home and financed $150,000 with a 30-year mortgage at 8.2%. (a) Find their monthly payment, the total amount of their payments, and the total amount of interest they will pay over the life of this loan. (b) The Budais made payments for 15 years. Estimate the unpaid balance using the formulay =R( 1-(1+i)n-x-1/i)
three years ago , the Kennedys purchased a house and took out a mortgage of $ 1,000,000 from the HSBC bank. They amortized the mortgage over 25 years at 2.79\% compounded semi - annually for a 3 year term. The bank calculated their monthly payment should be $ 4,626. How much would the final payment be assuming the same interest rate over the 25 years ?
You purchase a cottage for $185,000. You obtain a 30-year, fixed rate mortgage loan at 13.0% after paying a down payment of 30%. Of the second month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answers to the nearest cent.)Interest $________Applied to Principle $__________
Twelve years ago you financed your $93,000 house with monthly payments on a twenty-yearmortgage loan with interest charged at 6.25% compounded monthly. Your realtor says the currentnet market value of the home is $102,000. What is your equity in the house?
You have just taken out a mortgage of $50,000 for 30 years, with monthly payments at 6% interest. The same day you close on the mortgage you receive a $25,000 gift from your parents to be applied to the mortgage principal. What amount of time will now be required to pay off the mortgage if you continue to make the original monthly payments? What is the amount of the last payment? (Assume any residual partial payment amount is added to the last payment.)
You took out a mortgage on a new house 13 years ago. You bought the house for $300,000; the mortgage loan was $164,000. The original mortgage loan was 30 years. Payments are monthly in the amount of $782.96. What is your remaining balance?

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