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Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $74,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent.   Monthly payment Total cost of interest a. 25 Years, 4.75% $337.51 $42,053.00 b.25 Years, 5.25%     c. 25 Years, 5.50% $363.54 $49,862.00 d. 25 Years, 5.75%     e. What is the savings in interest cost between 4.75% and 5.75%? Note: Round your answer to the nearest dollar amount. Interest cost: f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest? Note: Use 360 days a year. Round your answer to the nearest dollar amount. Interest difference:   TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651 3.36714 2.750 0.22917 9.54110 6.78622 5.42166 4.61311 4.08241 3.43728 2.875 0.23958 9.59848 6.84586 5.48361 4.67735 4.14892 3.50818 3.000 0.25000 9.65607 6.90582 5.54598 4.74211 4.21604 3.57984 3.125 0.26042 9.71388 6.96609 5.60876 4.80738 4.28375 3.65226 3.250 0.27083 9.77190 7.02669 5.67196 4.87316 4.35206 3.72541 3.375 0.28125 9.83014 7.08760 5.73557 4.93945 4.42096 3.79930 3.500 0.29167 9.88859 7.14883 5.79960 5.00624 4.49045 3.87391 3.625 0.30208 9.94725 7.21037 5.86404 5.07352 4.56051 3.94923 3.750 0.31250 10.00612 7.27222 5.92888 5.14131 4.63116 4.02526 3.875 0.32292 10.06521 7.33440 5.99414 5.20959 4.70237 4.10198 4.000 0.33333 10.12451 7.39688 6.05980 5.27837 4.77415 4.17938 4.125 0.34375 10.18403 7.45968 6.12587 5.34763 4.84650 4.25746 4.250 0.35417 10.24375 7.52278 6.19234 5.41738 4.91940 4.33620 4.375 0.36458 10.30369 7.58620 6.25922 5.48761 4.99285 4.41559 4.500 0.37500 10.36384 7.64993 6.32649 5.55832 5.06685 4.49563 4.625 0.38542 10.42420 7.71397 6.39417 5.62951 5.14140 4.57629 4.750 0.39583 10.48477 7.77832 6.46224 5.70117 5.21647 4.65758 4.875 0.40625 10.54556 7.84297 6.53070 5.77330 5.29208 4.73947 5.000 0.41667 10.60655 7.90794 6.59956 5.84590 5.36822 4.82197 5.125 0.42708 10.66776 7.97320 6.66881 5.91896 5.44487 4.90505 5.250 0.43750 10.72917 8.03878 6.73844 5.99248 5.52204 4.98870 5.375 0.44792 10.79079 8.10465 6.80847 6.06645 5.59971 5.07293 5.500 0.45833 10.85263 8.17083 6.87887 6.14087 5.67789 5.15770 5.625 0.46875 10.91467 8.23732 6.94966 6.21575 5.75656 5.24302 5.750 0.47917 10.97692 8.30410 7.02084 6.29106 5.83573 5.32888 5.875 0.48958 11.03938 8.37118 7.09238 6.36682 5.91538 5.41525 6.000 0.50000 11.10205 8.43857 7.16431 6.44301 5.99551 5.50214 6.125 0.51042 11.16493 8.50625 7.23661 6.51964 6.07611 5.58952 6.250 0.52083 11.22801 8.57423 7.30928 6.59669 6.15717 5.67740 6.375 0.53125 11.29130 8.64250 7.38232 6.67417 6.23870 5.76575 6.500 0.54167 11.35480 8.71107 7.45573 6.75207 6.32068 5.85457 6.625 0.55208 11.41850 8.77994 7.52950 6.83039 6.40311 5.94385 6.750 0.56250 11.48241 8.84909 7.60364 6.90912 6.48598 6.03357 6.875 0.57292 11.54653 8.91854 7.67814 6.98825 6.56929 6.12373 7.000 0.58333 11.61085 8.98828 7.75299 7.06779 6.65302 6.21431 7.125 0.59375 11.67537 9.05831 7.82820 7.14773 6.73719 6.30531 7.250 0.60417 11.74010 9.12863 7.90376 7.22807 6.82176 6.39672 7.375 0.61458 11.80504 9.19923 7.97967 7.30880 6.90675 6.48852 7.500 0.06250 11.87017 9.27101 8.05593 7.38991 6.99215 6.58071 7.625 0.63542 11.93552 9.34130 8.13254 7.47141 7.07794 6.67327 7.750 0.64583 12.00106 9.41276 8.20949 7.55329 7.16412 6.76620 7.875 0.65625 12.06681 9.48450 8.28677 7.63554 7.25069 6.85948 8.000 0.66667 12.13276 9.55652 8.36440 7.71816 7.33765 6.95312

Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $74,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent.   Monthly payment Total cost of interest a. 25 Years, 4.75% $337.51 $42,053.00 b.25 Years, 5.25%     c. 25 Years, 5.50% $363.54 $49,862.00 d. 25 Years, 5.75%     e. What is the savings in interest cost between 4.75% and 5.75%? Note: Round your answer to the nearest dollar amount. Interest cost: f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest? Note: Use 360 days a year. Round your answer to the nearest dollar amount. Interest difference:   TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651 3.36714 2.750 0.22917 9.54110 6.78622 5.42166 4.61311 4.08241 3.43728 2.875 0.23958 9.59848 6.84586 5.48361 4.67735 4.14892 3.50818 3.000 0.25000 9.65607 6.90582 5.54598 4.74211 4.21604 3.57984 3.125 0.26042 9.71388 6.96609 5.60876 4.80738 4.28375 3.65226 3.250 0.27083 9.77190 7.02669 5.67196 4.87316 4.35206 3.72541 3.375 0.28125 9.83014 7.08760 5.73557 4.93945 4.42096 3.79930 3.500 0.29167 9.88859 7.14883 5.79960 5.00624 4.49045 3.87391 3.625 0.30208 9.94725 7.21037 5.86404 5.07352 4.56051 3.94923 3.750 0.31250 10.00612 7.27222 5.92888 5.14131 4.63116 4.02526 3.875 0.32292 10.06521 7.33440 5.99414 5.20959 4.70237 4.10198 4.000 0.33333 10.12451 7.39688 6.05980 5.27837 4.77415 4.17938 4.125 0.34375 10.18403 7.45968 6.12587 5.34763 4.84650 4.25746 4.250 0.35417 10.24375 7.52278 6.19234 5.41738 4.91940 4.33620 4.375 0.36458 10.30369 7.58620 6.25922 5.48761 4.99285 4.41559 4.500 0.37500 10.36384 7.64993 6.32649 5.55832 5.06685 4.49563 4.625 0.38542 10.42420 7.71397 6.39417 5.62951 5.14140 4.57629 4.750 0.39583 10.48477 7.77832 6.46224 5.70117 5.21647 4.65758 4.875 0.40625 10.54556 7.84297 6.53070 5.77330 5.29208 4.73947 5.000 0.41667 10.60655 7.90794 6.59956 5.84590 5.36822 4.82197 5.125 0.42708 10.66776 7.97320 6.66881 5.91896 5.44487 4.90505 5.250 0.43750 10.72917 8.03878 6.73844 5.99248 5.52204 4.98870 5.375 0.44792 10.79079 8.10465 6.80847 6.06645 5.59971 5.07293 5.500 0.45833 10.85263 8.17083 6.87887 6.14087 5.67789 5.15770 5.625 0.46875 10.91467 8.23732 6.94966 6.21575 5.75656 5.24302 5.750 0.47917 10.97692 8.30410 7.02084 6.29106 5.83573 5.32888 5.875 0.48958 11.03938 8.37118 7.09238 6.36682 5.91538 5.41525 6.000 0.50000 11.10205 8.43857 7.16431 6.44301 5.99551 5.50214 6.125 0.51042 11.16493 8.50625 7.23661 6.51964 6.07611 5.58952 6.250 0.52083 11.22801 8.57423 7.30928 6.59669 6.15717 5.67740 6.375 0.53125 11.29130 8.64250 7.38232 6.67417 6.23870 5.76575 6.500 0.54167 11.35480 8.71107 7.45573 6.75207 6.32068 5.85457 6.625 0.55208 11.41850 8.77994 7.52950 6.83039 6.40311 5.94385 6.750 0.56250 11.48241 8.84909 7.60364 6.90912 6.48598 6.03357 6.875 0.57292 11.54653 8.91854 7.67814 6.98825 6.56929 6.12373 7.000 0.58333 11.61085 8.98828 7.75299 7.06779 6.65302 6.21431 7.125 0.59375 11.67537 9.05831 7.82820 7.14773 6.73719 6.30531 7.250 0.60417 11.74010 9.12863 7.90376 7.22807 6.82176 6.39672 7.375 0.61458 11.80504 9.19923 7.97967 7.30880 6.90675 6.48852 7.500 0.06250 11.87017 9.27101 8.05593 7.38991 6.99215 6.58071 7.625 0.63542 11.93552 9.34130 8.13254 7.47141 7.07794 6.67327 7.750 0.64583 12.00106 9.41276 8.20949 7.55329 7.16412 6.76620 7.875 0.65625 12.06681 9.48450 8.28677 7.63554 7.25069 6.85948 8.000 0.66667 12.13276 9.55652 8.36440 7.71816 7.33765 6.95312

Essentials Of Investments
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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Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $74,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1)

Note: Do not round intermediate calculations. Round your answers to the nearest cent.

  Monthly payment Total cost of interest
a. 25 Years, 4.75% $337.51 $42,053.00
b.25 Years, 5.25%    
c. 25 Years, 5.50% $363.54 $49,862.00
d. 25 Years, 5.75%    

e. What is the savings in interest cost between 4.75% and 5.75%?

Note: Round your answer to the nearest dollar amount.

Interest cost:

f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest?

Note: Use 360 days a year. Round your answer to the nearest dollar amount.

Interest difference:

 

TABLE 15.1

Amortization table (mortgage principal and interest per $1,000)

Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year
2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826
2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444
2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142
2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921
2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778
2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651 3.36714
2.750 0.22917 9.54110 6.78622 5.42166 4.61311 4.08241 3.43728
2.875 0.23958 9.59848 6.84586 5.48361 4.67735 4.14892 3.50818
3.000 0.25000 9.65607 6.90582 5.54598 4.74211 4.21604 3.57984
3.125 0.26042 9.71388 6.96609 5.60876 4.80738 4.28375 3.65226
3.250 0.27083 9.77190 7.02669 5.67196 4.87316 4.35206 3.72541
3.375 0.28125 9.83014 7.08760 5.73557 4.93945 4.42096 3.79930
3.500 0.29167 9.88859 7.14883 5.79960 5.00624 4.49045 3.87391
3.625 0.30208 9.94725 7.21037 5.86404 5.07352 4.56051 3.94923
3.750 0.31250 10.00612 7.27222 5.92888 5.14131 4.63116 4.02526
3.875 0.32292 10.06521 7.33440 5.99414 5.20959 4.70237 4.10198
4.000 0.33333 10.12451 7.39688 6.05980 5.27837 4.77415 4.17938
4.125 0.34375 10.18403 7.45968 6.12587 5.34763 4.84650 4.25746
4.250 0.35417 10.24375 7.52278 6.19234 5.41738 4.91940 4.33620
4.375 0.36458 10.30369 7.58620 6.25922 5.48761 4.99285 4.41559
4.500 0.37500 10.36384 7.64993 6.32649 5.55832 5.06685 4.49563
4.625 0.38542 10.42420 7.71397 6.39417 5.62951 5.14140 4.57629
4.750 0.39583 10.48477 7.77832 6.46224 5.70117 5.21647 4.65758
4.875 0.40625 10.54556 7.84297 6.53070 5.77330 5.29208 4.73947
5.000 0.41667 10.60655 7.90794 6.59956 5.84590 5.36822 4.82197
5.125 0.42708 10.66776 7.97320 6.66881 5.91896 5.44487 4.90505
5.250 0.43750 10.72917 8.03878 6.73844 5.99248 5.52204 4.98870
5.375 0.44792 10.79079 8.10465 6.80847 6.06645 5.59971 5.07293
5.500 0.45833 10.85263 8.17083 6.87887 6.14087 5.67789 5.15770
5.625 0.46875 10.91467 8.23732 6.94966 6.21575 5.75656 5.24302
5.750 0.47917 10.97692 8.30410 7.02084 6.29106 5.83573 5.32888
5.875 0.48958 11.03938 8.37118 7.09238 6.36682 5.91538 5.41525
6.000 0.50000 11.10205 8.43857 7.16431 6.44301 5.99551 5.50214
6.125 0.51042 11.16493 8.50625 7.23661 6.51964 6.07611 5.58952
6.250 0.52083 11.22801 8.57423 7.30928 6.59669 6.15717 5.67740
6.375 0.53125 11.29130 8.64250 7.38232 6.67417 6.23870 5.76575
6.500 0.54167 11.35480 8.71107 7.45573 6.75207 6.32068 5.85457
6.625 0.55208 11.41850 8.77994 7.52950 6.83039 6.40311 5.94385
6.750 0.56250 11.48241 8.84909 7.60364 6.90912 6.48598 6.03357
6.875 0.57292 11.54653 8.91854 7.67814 6.98825 6.56929 6.12373
7.000 0.58333 11.61085 8.98828 7.75299 7.06779 6.65302 6.21431
7.125 0.59375 11.67537 9.05831 7.82820 7.14773 6.73719 6.30531
7.250 0.60417 11.74010 9.12863 7.90376 7.22807 6.82176 6.39672
7.375 0.61458 11.80504 9.19923 7.97967 7.30880 6.90675 6.48852
7.500 0.06250 11.87017 9.27101 8.05593 7.38991 6.99215 6.58071
7.625 0.63542 11.93552 9.34130 8.13254 7.47141 7.07794 6.67327
7.750 0.64583 12.00106 9.41276 8.20949 7.55329 7.16412 6.76620
7.875 0.65625 12.06681 9.48450 8.28677 7.63554 7.25069 6.85948
8.000 0.66667 12.13276 9.55652 8.36440 7.71816 7.33765 6.95312
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please answer question F. 

f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest?

Note: Use 360 days a year. Round your answer to the nearest dollar amount.

Interest difference:????

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