How would I find the outstanding principal in this problem? I don't have any idea on how to go about it. I've tried many different ways but none of them got me the answer the book has, which is $190,119.14
How would I find the outstanding principal in this problem? I don't have any idea on how to go about it. I've tried many different ways but none of them got me the answer the book has, which is $190,119.14
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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How would I find the outstanding principal in this problem? I don't have any idea on how to go about it. I've tried many different ways but none of them got me the answer the book has, which is $190,119.14
Thank you!
![ear conventional mortgage
calculated on
cae rate of 3%lyear compounded monthly. At the end of
payment?
lOME REFINANCING FOur years ago, Emily secured a bank
laan of $200,000 to help finance the purchase of an anart
ent in Boston. The term of the mortgage is 30
d the interest rate is 6.5%/year compounded monthly.
Because the interest rate for a conventional 30-year home
mortgage has now dropped to 4.75%/year compounded
monthly, Emily is thinking of refinancing her property.
a. What is Emily's current monthly mortgage payment?
b. What is Emily's current outstanding principal?
c. If Emily decides to refinance her property by securing
years,
a 30-year home mortgage loan in the amount of the
current outstanding principal at the prevailing interest
rate of 4.75%/year compounded monthly, what will be
her monthly mortgage payment?
d. How much less will Emily's monthly mortgage pay-
ment be if she refinances?
. HOME REFINANCING Five vears ago, Diane secured a bank
an of $300,000 to help finance the purchase of a loft in
e San Francisco Bay area. The term of the mortgage
30 years, and the interest rate was 6%lyear com-
pounded monthly
on the unpaid balance. Because the
1.30 vear home mortgage
interest rate for](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8cda31e-e083-492f-a4b9-9c9f1b8c2c13%2Fa7e9e699-6fcb-47b9-a350-cf8fcb8f5704%2F9afxta_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ear conventional mortgage
calculated on
cae rate of 3%lyear compounded monthly. At the end of
payment?
lOME REFINANCING FOur years ago, Emily secured a bank
laan of $200,000 to help finance the purchase of an anart
ent in Boston. The term of the mortgage is 30
d the interest rate is 6.5%/year compounded monthly.
Because the interest rate for a conventional 30-year home
mortgage has now dropped to 4.75%/year compounded
monthly, Emily is thinking of refinancing her property.
a. What is Emily's current monthly mortgage payment?
b. What is Emily's current outstanding principal?
c. If Emily decides to refinance her property by securing
years,
a 30-year home mortgage loan in the amount of the
current outstanding principal at the prevailing interest
rate of 4.75%/year compounded monthly, what will be
her monthly mortgage payment?
d. How much less will Emily's monthly mortgage pay-
ment be if she refinances?
. HOME REFINANCING Five vears ago, Diane secured a bank
an of $300,000 to help finance the purchase of a loft in
e San Francisco Bay area. The term of the mortgage
30 years, and the interest rate was 6%lyear com-
pounded monthly
on the unpaid balance. Because the
1.30 vear home mortgage
interest rate for
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