5-24. (Loan amortization) Mr. Dayvos Bay has just purchased a new house for$300,000. He paid $30,000 down payment and agreed to pay the rest over the next25 years in 25 equal end-of-year payments plus 10 percent compound interest overthe unpaid balance. What will these equal payments be?

The equal annual payments can be computed as follows :

Answered: 5-24. (Loan amortization) Mr. Dayvos…

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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12.1 pg. 219-220 Find the monthly payment for each loan below. Remember to assume monthly compounding. 12. Frankie purchased a house for $185,000. He put 20% of the purchase down as a down payment. He financed the house for 4.25% for 15 years. The annual taxes are $1250, and the insurance is $1056. What is his monthly principal, interest, tax, and insurance (PITI) mortgage payment?
1) Alar borrowed 36,000 to buy "Season Gold tickets for the much-improved Toronto Maple Leafs". His Mom wants him to repay the loan back with equal quarterly payments over 10 years, with 12% interest compounded quarterly. (14.1) a) Find the size of those equal payments b) Draw a Partial Amortization Table which will have i) The First 2 payments (ii) Payment # 20 iii) The last 2 payments Payment Amount Number 0 1 2 20 Outstanding Paid Principal Balance 2nd Last # Interest Paid i= ? (last payment)#_ Principle Repaid
Your brother-in-law asks you to lend him $225000.00 as a second mortgage on his vacation home. He promises to make level monthly payments for 10 years, 120 payments in all. You decide that a fair interest rate is 4.50% compounded annually. What should the monthly payment be on the $225000.00 loan? O $2369.60 $2331.86 $1875.00 O $2272.31 O $1959.37
None
Mr. Bill purchased a new house for 110,000. He paid 20,000 down and agreed to pay the rest over the next 30 years in 30 equal end of the year payments plus 12 percent compound interest on the unpaid balance. What will these equal payments be?

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5-24. (Loan amortization) Mr. Dayvos Bay has just purchased a new house for $300,000. He paid $30,000 down payment and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest over the unpaid balance. What will these equal payments be?