House Mortgage Suppose you purchase a house for $592,978 and make a down payment of 14% of the purchase price. The balance is amortized over 22 years. The house mortgage agreement is subject to 3.3479% compounded semi-annually for the first four years and requires equal monthly payments. - What is the size of the equal monthly payments for the first four years? What is the house mortgage balance at the end of the four years? Perform this calculation using Excel, without an amortization schedule. After four years, the house mortgage is refinanced at a reduced nominal rate of 3.1469% compounded semi-annually and the house mortgage is amortized over the remainder of the term. What is the size of the new mortgage payments for the remainder of the term? What is the size of the final loan payment? Perform this calculation in Excel, without an amortization schedule. 1 Prepare one complete amortization schedule showing the mortgage amortized over the full 22-year period (reflecting the change in payment size). Cell reference values appropriately. ROUND all monetary values to the nearest cent Express only the totals as currency.
House Mortgage Suppose you purchase a house for $592,978 and make a down payment of 14% of the purchase price. The balance is amortized over 22 years. The house mortgage agreement is subject to 3.3479% compounded semi-annually for the first four years and requires equal monthly payments. - What is the size of the equal monthly payments for the first four years? What is the house mortgage balance at the end of the four years? Perform this calculation using Excel, without an amortization schedule. After four years, the house mortgage is refinanced at a reduced nominal rate of 3.1469% compounded semi-annually and the house mortgage is amortized over the remainder of the term. What is the size of the new mortgage payments for the remainder of the term? What is the size of the final loan payment? Perform this calculation in Excel, without an amortization schedule. 1 Prepare one complete amortization schedule showing the mortgage amortized over the full 22-year period (reflecting the change in payment size). Cell reference values appropriately. ROUND all monetary values to the nearest cent Express only the totals as currency.
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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Transcribed Image Text:House Mortgage
Suppose you purchase a house for $592,978 and make a down payment of 14% of the purchase
price. The balance is amortized over 22 years. The house mortgage agreement is subject to
3.3479% compounded semi-annually for the first four years and requires equal monthly payments.
What is the size of the equal monthly payments for the first four years?
What is the house mortgage balance at the end of the four years? Perform this calculation
using Excel, without an amortization schedule.
After four years, the house mortgage is refinanced at a reduced nominal rate of 3.1469%
compounded semi-annually and the house mortgage is amortized over the remainder of the term.
What is the size of the new mortgage payments for the remainder of the term?
What is the size of the final loan payment? Perform this calculation in Excel, without an
amortization schedule.
Prepare one complete amortization schedule showing the mortgage amortized over the full
22-year period (reflecting the change in payment size) Cell reference values appropriately.
ROUND all monetary values to the nearest cent Express only the totals as currency.
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