George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500. He takes a 30 year fixed rate mortgage with 7.00% interest rate and no fees. Assuming George repays the mortgage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65)

George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500. He takes a 30 year fixed rate mortgage with 7.00% interest rate and no fees. Assuming George repays the mortgage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65)

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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Todd Foley is applying for a $290,000 mortgage. He can get a $2,030 monthly payment for principal and interest and no points, or a $1,827 monthly payment with 4 points? How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?
George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4, 500. He takes a 30 year fixed rate mortgage with 2. 13% interest rate and no fees. Assuming George repays the mortoage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65).
Phil Pittman is interested in a fixed-rate mortgage for $400,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.)
If Bobby takes out a mortgage for 30 years at an interest rate of 4% and his monthly repayments are $835.48, what is the loan principal (that is, the balance of the loan at drawdown)? Give your answer to the nearest ten dollars. Do not include commas or the dollar sign in your answer.
Justin and Hayley are interested in a fixed-rate mortgage for $450,000. They are undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 3.5% for the 15-year mortgage, and 3.85% for the 30-year mortgage (a) What are the monthly principal and interest payments for EACH loan? (b) What is the total amount of interest paid on EACH loan? (c) Overall, how much more interest is paid by choosing the 30-year mortgage?
Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 8% for the 15-year mortgage and 8.5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage $ 1,911.304 30-year mortgage $ 1,537.827 (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage $ 30-year mortgage $ (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage?
Phil Pittman is interested in a fixed-rate mortgage for $300,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage $________ 30-year mortgage $________ (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage$ _______ 30-year mortgage$ _______ (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $
Aziza is taking out a $1475 mortgage with a 30-year, fixed rate, fully amortizing loan and with 7.0% interest. What will be Aziza's monthly payments? Round your answer to the nearest cent (e.g. if your answer is $1,000.567, enter 1000.57),

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