If you took a home mortgage loan of$200.000 for 30 years at 9.2%. compoundedmonthly. Suppose after 5 years you had anadditional $10.000. Would you save more overthe life of the loan by paying an extra $10,000(one-time) with your 60th payment or bypaying $2,000 per month beginning with the61st payment? To help you answer thisquestion, complete the following.(a) Find monthly payments and find theunpaid balance after 60th payments with andwithout extra payment.(b) Determine how long it takes to pay off theloan with the regular payments you calculatedin (a) and the additional $10.000 payment.Then find the total interest paid.(c) Determine how long it takes to pay off theloan without the additional $10,000 payment,but with monthly payments of $2.000 fromthe 61st paymentThen find the total interest paid.(d) Which payment method costs less?

Loans and mortgages are paid by equal constant installments but payment for interest and payment for…

If you took a home mortgage loan of $200.000 for 30 years at 9.2%. compounde monthly. Suppose after 5 years you had an additional $10.000. Would you save more c the life of the loan by paying an extra $10,C (one-time) with your 60th payment or by paying $2,000 per month beginning with t 61st payment? To help you answer this

If you took a home mortgage loan of $200.000 for 30 years at 9.2%. compounde monthly. Suppose after 5 years you had an additional $10.000. Would you save more c the life of the loan by paying an extra $10,C (one-time) with your 60th payment or by paying $2,000 per month beginning with t 61st payment? To help you answer this

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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Similar questions

Suppose you want to buy a $159,000 home. You found a bank that offers a 30-year loan at 3.3% APR. What will be your monthly payment? (Round to the nearest cent.) How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) $ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) $ How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) $
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
You are offered an add-on loan for $4,500 at 18% for 5 years. What is the monthly payment? What is the amount of interest? What is the true interest rate cost of this loan? If you could pay the same loan above at a compound rate: What would the monthly payment be? What would the amount of interest be? Prepare a monthly payment schedule for each loan above using Excel, and submit it. Suppose that you are only allowed to make a balloon payment to the principal of the compound interest loan. You have $1,000 to put down at the beginning of year three. How many payments will you save?
If you are a mortgage lender, what is the most you are willing to lend a borrower today in the following situation: The borrower has promised to pay you $10,500 at the end of each year for 30 years and you want to earn a 5% annual rate of return. Amount the lender is willing to lend:
You have a 30-year mortgage loan for $250,000 with an interest rate of 6% which requires you to make the payments monthly. If you make a monthly payment of $1,300 how much money will be owed at maturity? Can you please show how to do this in excell, thank you!
Suppose you took out a 25 year mortgage at 2.32% to purchase a home, making monthly payments of $2100. After 5 years and 6 months you are able to refinance for 20 years at 2.15%, making monthly payments of $1950. How much do you save on interest by refinancing?
You take out a 30-year fixed rate mortgage for $160000 at 4.4% compounded monthly. a) Make a spreadsheet and calculate your monthly payment by experimentation. What is your monthly payment? $ b) You round your monthly payment up to the nearest hundred dollars. Adjust your spreadsheet. When do you pay off the loan?
(please finanas question correct answer) You want to buy a $243.000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. How much im the loan amount going to be? What will your monthly payments be if the interest rate is 5%? What will be your monthly payments if the interest rate is 6%?
Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this loan are $ 1193.54. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments? If you put $ 1193.54 per month into an annuity earning 7.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?
You take out a 5-year amortized loan to buy a new car. After making monthly payments of $246.50 for 3 years, you still owe $5,424 If you decided to pay the loan off, how much will you save in interest? A total of Swould be saved in interest. (Round to the nearest cent as needed)
You have accepted a loan in an amount of $15,000 for your new car. You have agreed to pay the loan back in four years. What is your monthly payment if you agree to pay an interest rate of 9% compounding monthly? Solve this problem for i = 6%, i = 7%, and i = 8% each compounding monthly.
You purchase a house for $250,000 by getting a mortgage for $200,000 and paying a $50,000 down payment (20%). You can get a 30-year mortgage with a 4.0% interest rate. What would be your monthly payment?

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