In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at anannual interest rate of 6%. After 10 years, they refinanced the unpaid balance of $142,125 at anannual rate of 4%. Use the table to find the monthly payments on the original loan; the monthlypayments on the new loan; and the total amount saved on interest by refinancing.Click the icon to view a table of monthly payments on a $1,000 loan.The monthly payments on the original loan are $(Type an integer or a decimal.) Number of Years for the LoanAnnual Interest Rate341020304%$29.53$22.58$10.12$6.06$4.775%29.9723.0310.616.605.376%304223.4911.107.166.008%31.3424.4112.138.367.3410%32.2725.3613.229.658.7812%33.2126.3314.3511.0110.29PrintDone

Installment amount is the amount of periodic payments a borrower has to make to its lender in order…

Answered: In order to buy a vacation home, Neal…

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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Question 27?
annuity payment years interest rate2400 7 5%1400 9 40/612580 17 6%32150 23 8% calcularte the cash flow
Amount financed $8300 number of payments 36 apr 11% whats the finance charge and monthly payment amount
Use this table to find the monthly mortgage payments, when necessary. Tanyarita has a mortgage of $52,500 at 7% for 20 years. The property taxes are $2,600 semiannually, and the hazard insurance 2 premium is $130 quarterly. Find the monthly taxes and insurance payment. $227.50 $476.67 $661.94 $899.82
Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.). (Use 13% for table lookup.). (Use the loan amortization table) Note: Round your answers to the nearest cent. Purchase price of a used car $5,633 By table By formula Down payment $1,203 Monthly Payment Number of monthly payments 48 Amount financed $4,430 Total of monthly payments $5,689.76 Total finance charge $1,259.76 APR 13%
Ef 253.
Use this table to estimate the monthly payment for the loan described. (Round your answer to the nearest cent.) $68,200; 30 years; 61⁄2% tA
The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $987,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? $4 (b) If Darrell chooses the 4-point 9% loan, what…
Tait is entering high school and is determined to save money for college. Tait feels he can save $2,500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) E (Click the icon to view Future Value of Ordinary Annuity of $1 table.) - X Reference (Round your answer to the nearest dollar.) Reference When Tait starts college he will have Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Future Value of $1 0.990 0.980 0.971 0.962 0.952 0.943 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.840 0.961 0.924 0.888 0.855 0.823 0.792 0.951 0.906 0.863 0.822 0.784 0.747 0.917 0.909 0.893 | 0.877 0.870 0.862 0.847 0.833 0.826 0.797 0.769 0.756 0.743…
Loan Amount Loan Term Fully Amortized Interest Rate Origination Fee Prepayment Penalty 7.5% 8.1% 9.6% Old Loan 4,000,000 30 years Yes 7% 3% 7% 10.1% New Loan What is the internal rate of return of refinancing the old loan at the end of Year 10? (choose the closest answer) 6.8% 20 years Yes 5.5% 4% 3%
Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000, which she uses as a down payment. She finances the balance at 4.5% APR over 48 months. Before making her 12th Number of 4.0% Payments (Financ 30 5.25 payment, she decides to pay off the loan. Answer parts a) through d) below. 36 6.29 48 8.38 a) Use the given table to determine the total interest Nina would pay if all 48 payments were made. Nina would pay S in interest (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were S (Round to the nearest cent as needed) c) How much interest will Nina save by paying off the loan early? Nina will save S. (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is S- (Round to the nearest cent as needed.)
Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $14,150. He put $1,500 down and financed the rest with a 48-month, 8.5% loan. What is his monthly car payment by table lookup? (Use Table 14.2) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Monthly payment

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