7. After 5 years, you decide not to use the money for a car. Instead, you'll take $10,000of it to buy a house. You find a home you love for $375,000.a. Assuming that you get an interest rate of 5.75%, plan on taking about a 30-year mortgage, and you will put a down payment of $8,000, what will yourmonthly payment be? (hint: find PMT, and don't forget to take out the downpayment!)b. Yikes! That payment is way too much! You want to have a mortgage paymentof $1200. Assuming that you get an interest rate of 5.75%, plan on taking about a30-year mortgage, and a payment of $1200 each month, how big of a mortgageshould you get? (hint: find PV. Do NOT take out a down payment.)c. After your findings in 5b, you aim for a $200,000 mortgage. Assuming you getan interest rate of 5.75%, plan on taking about a 30-year mortgage, and themortgage is $200,000, how much will you pay over the life of the mortgage?(hint: find the PMT first)d. How much of that was interest if the loan was $200,000? (hint: use the PMTand PV)e. How much money could you have saved if you did a 15-year mortgageinstead? (hint: rerun the TVM)

Price of home=$375000Down payment=$8000Interest rate=5.75%Period=30 years(Note=in this first three…

fter 5 years, you decide not to use the money for a car. Instead, you'll take $10,000 to buy a house. You find a home you love for $375,000. a. Assuming that you get an interest rate of 5.75%, plan on taking about a 30- year mortgage, and you will put a down payment of $8,000, what will your monthly payment be? (hint: find PMT, and don't forget to take out the down payment!) b. Yikes! That payment is way too much! You want to have a mortgage payment of $1200. Assuming that you get an interest rate of 5.75%, plan on taking about a 20-year mortgage and a payment of $1200 each month how big of a mortgage

fter 5 years, you decide not to use the money for a car. Instead, you'll take $10,000 to buy a house. You find a home you love for $375,000. a. Assuming that you get an interest rate of 5.75%, plan on taking about a 30- year mortgage, and you will put a down payment of $8,000, what will your monthly payment be? (hint: find PMT, and don't forget to take out the down payment!) b. Yikes! That payment is way too much! You want to have a mortgage payment of $1200. Assuming that you get an interest rate of 5.75%, plan on taking about a 20-year mortgage and a payment of $1200 each month how big of a mortgage

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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Similar questions

You want to buy a $188,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 3.4% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years?
Suppose you want to purchase a home for $375,000 with a 30-year mortgage at 5.14% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.) $
You want to buy a $205,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan at 4.15% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
Not sure where to start this one Suppose that you purchase a new home that costs $180,000. A local bank offers you a 3% fixed rate mortgage loan for 30 years. Also, you are required to make a 20% down payment immediately. a) Find your monthly payment. b) Find the interest amount and the principal amount in your first monthly payment. c) Find the total interest paid for 30 years.
You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.95% interest for the rest. How much is the loan amount going to be? What will your monthly payments be?
Suppose you want to buy a $148,000 home. You found a bank that offers a 30-year loan at 3.1% APR.What will be your monthly payment? (Round to the nearest cent.)$How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.)Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.)How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.)How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
You apply for a mortgage loan on a $120,000 condo using 80% loan-to-value. Going interest rates are 4.00%, but after thoroughly surfing the net, you find a lender to grant you a loan at 3.25%. and jump on it. It’s a 30-year loan paid monthly. How much interest would you save during the first 10 years of the loan now that you’ve found the lower interest rate?
You need a 30-year, fixed-rate mortgage to buy a new home for $400,000. Your mortgage bank will lend you the money at a 6 percent APR for a 360 month loan. You can only afford a monthly payment of $1000. How much downpayment should you put at the time of purchase? Please show your work using excel formulas.
Quantitative Problem: You need $14,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 4 years, with the first payment to be made one year from today. He requires a 9% annual return. a. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. b. How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent. Interest: $ Principal repayment: $
You want to buy a $162,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.1% interest for the rest.a) How much is the loan amount going to be?b) What will your monthly payments be?c) How much of the first payment is interest?
You want to buy a $153,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 5.25% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years? $

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