If you can spare $1,098 at moşt as monthly payment, how much mortgage can you afford (30 year at 3% annual interest)?

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
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Please help me this is one question only 2 parts please help fast sir
If you can spare $1,098 at moșt as monthly payment, how
much mortgage can you afford (30 year at 3% annual
interest)?
Transcribed Image Text:If you can spare $1,098 at moșt as monthly payment, how much mortgage can you afford (30 year at 3% annual interest)?
Suppose you want to purchase a new house costs $500,000,
and you will borrow $410,939 from a bank with a 30-year
mortgage at 3% annual interest, how much will be your
monthly payment.
14%
n
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28
20
Single Payment
Compound Present Sinking
Amount
Worth
Fund
Factor
Factor
Factor
Find F
Given P
F/P
1.003
1.005
1.008
1.010
1.013
1.015
1.018
1.020
1.023
1.025
1.028
1.030
1.033
1.036
1.038
1.041
1.043
1.046
1.049
1.051
1.054
1.056
1.059
1,062
1,064
1.067
1.070
1.072
1075
Find P
Given F
P/F
9975
9950
9925
9901
9876
9851
9827
9802
9778
9753
9729
9705
9681
9656
9632
9608
9584
9561
9537
9513
9489
9465
9442
9418
9395
9371
9348
9325
0301
Find A
Given F
A/F
1.0000
4994
3325
2491
1990
1656
1418
1239
1100
0989
0898
0822
0758
0703
0655
0613
0577
0544
0515
0488
0464
0443
0423
0405
0388
0373
0358
0345
6***
Compound Interest Factors
Uniform Payment Series
Capital Compound
Recovery Amount
Factor
Factor
Find A
Find F
Given
Given A
A/P
F/A
1.0025
5019
3350
2516
2015
1681
1443
1264
1125
1014
0923
0847
0783
0728
0680
0638
0602
0569
0540
0513
0489
0468
0448
0430
0413
0398
0383
0370
1.000
2.003
3.008
4.015
5.025
6.038
7,053
8.070
9.091
10.113
11.139
12.167
13.197
14.230
15.266
16.304
17.344
18.388
19.434
20.482
21.534
22:587
23.644
24.703
25.765
26.829
27.896
28.966
Present Gradient
Worth
Factor
Find P
Given A
P/A
0.998
1.993
2.985
3.975
4.963
5.948
6.931
7.911
8.889
9.864
10.837
11.807
12.775
13.741
14.704
15.665
16.624
17.580
18.533
19.485
20.434
21.380
22.324
23.266
24 206
Arithmetic Gradient
Gradient
Present
Worth
Find P
Given G
P/G
25.143
26.078
27.010
Uniform
Series
Find A
Given G
A/G
0.000
0.499
0.998
1.497
1.995
2.493
2.990
3.487
3.983
4.479
4.975
5.470
5.965
6.459
6.953
7.447
7.944
8.433
8.925
9.417
9.908
10.400
10.890
11.380
11.870
12.360
12.849
13.337
0.000
0.995
2.980
5.950
9.901
14.826
20.722
27.584
35.406
44.184
53.913
64.589
76.205
88.759
102 244
116.657
131.992
148.245
165.411
183.485
202.463
222.341
243.113
264.775
287.323
310.752
335.057
360 231
14%
n
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2
3
4
5
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7
8
9
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11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
78
Transcribed Image Text:Suppose you want to purchase a new house costs $500,000, and you will borrow $410,939 from a bank with a 30-year mortgage at 3% annual interest, how much will be your monthly payment. 14% n 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 Single Payment Compound Present Sinking Amount Worth Fund Factor Factor Factor Find F Given P F/P 1.003 1.005 1.008 1.010 1.013 1.015 1.018 1.020 1.023 1.025 1.028 1.030 1.033 1.036 1.038 1.041 1.043 1.046 1.049 1.051 1.054 1.056 1.059 1,062 1,064 1.067 1.070 1.072 1075 Find P Given F P/F 9975 9950 9925 9901 9876 9851 9827 9802 9778 9753 9729 9705 9681 9656 9632 9608 9584 9561 9537 9513 9489 9465 9442 9418 9395 9371 9348 9325 0301 Find A Given F A/F 1.0000 4994 3325 2491 1990 1656 1418 1239 1100 0989 0898 0822 0758 0703 0655 0613 0577 0544 0515 0488 0464 0443 0423 0405 0388 0373 0358 0345 6*** Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given Given A A/P F/A 1.0025 5019 3350 2516 2015 1681 1443 1264 1125 1014 0923 0847 0783 0728 0680 0638 0602 0569 0540 0513 0489 0468 0448 0430 0413 0398 0383 0370 1.000 2.003 3.008 4.015 5.025 6.038 7,053 8.070 9.091 10.113 11.139 12.167 13.197 14.230 15.266 16.304 17.344 18.388 19.434 20.482 21.534 22:587 23.644 24.703 25.765 26.829 27.896 28.966 Present Gradient Worth Factor Find P Given A P/A 0.998 1.993 2.985 3.975 4.963 5.948 6.931 7.911 8.889 9.864 10.837 11.807 12.775 13.741 14.704 15.665 16.624 17.580 18.533 19.485 20.434 21.380 22.324 23.266 24 206 Arithmetic Gradient Gradient Present Worth Find P Given G P/G 25.143 26.078 27.010 Uniform Series Find A Given G A/G 0.000 0.499 0.998 1.497 1.995 2.493 2.990 3.487 3.983 4.479 4.975 5.470 5.965 6.459 6.953 7.447 7.944 8.433 8.925 9.417 9.908 10.400 10.890 11.380 11.870 12.360 12.849 13.337 0.000 0.995 2.980 5.950 9.901 14.826 20.722 27.584 35.406 44.184 53.913 64.589 76.205 88.759 102 244 116.657 131.992 148.245 165.411 183.485 202.463 222.341 243.113 264.775 287.323 310.752 335.057 360 231 14% n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 78
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