Hector and Maria purchase their first home for $138,000. They make a 10% down payment and finance the remaining balance for 30 years at 6.5% annual interest. Calculate the amount of principal they will owe after their first two payments of principal and interest. (Use a formula for MMP)
Hector and Maria purchase their first home for $138,000. They make a 10% down payment and finance the remaining balance for 30 years at 6.5% annual interest. Calculate the amount of principal they will owe after their first two payments of principal and interest. (Use a formula for MMP)
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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![Hector and Maria purchase their first home for $138,000. They make a 10% down
payment and finance the remaining balance for 30 years at 6.5% annual interest.
Calculate the amount of principal they will owe after their first two payments of
principal and interest. (Use a formula for MMP)
Find the loan-to-value ratio for a home appraised at $640,000 that the buyer will
purchase for $655,000. The buyer plans to make a down payment of $160,000.
Find Cameron's housing ratio if his PITI is $1,831.31 and his gross monthly income
if $6,521.
Find Selina's debt to income ratio if her fixed monthly expenses are $1,625 and
her gross monthly income is $4,811.
1.
2.
3.
4.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00e55659-19ce-40be-9698-8e59815f8655%2F6533d72e-7bae-4176-a4d8-490586b5e10e%2Ff8aoier_processed.png&w=3840&q=75)
Transcribed Image Text:Hector and Maria purchase their first home for $138,000. They make a 10% down
payment and finance the remaining balance for 30 years at 6.5% annual interest.
Calculate the amount of principal they will owe after their first two payments of
principal and interest. (Use a formula for MMP)
Find the loan-to-value ratio for a home appraised at $640,000 that the buyer will
purchase for $655,000. The buyer plans to make a down payment of $160,000.
Find Cameron's housing ratio if his PITI is $1,831.31 and his gross monthly income
if $6,521.
Find Selina's debt to income ratio if her fixed monthly expenses are $1,625 and
her gross monthly income is $4,811.
1.
2.
3.
4.
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