Jim and Ann bought a house with a down payment of $16,000 and a $158,000 loan. The loan was for 25 years at a 4.3% interest rate. Closing costs amounted to an additional 1.1%. Two years later they were transferred and sold the house for what they paid for it, $174,000. The real estate agent charged a 5% fee for selling the house. Find the average monthly cost of the house taking into consideration the monthly payments, the costs of buying and selling, and the equity built up over 2 years. (Round your answer to the nearest cent.) $

Jim and Ann bought a house with a down payment of $16,000 and a $158,000 loan. The loan was for 25 years at a 4.3% interest rate. Closing costs amounted to an additional 1.1%. Two years later they were transferred and sold the house for what they paid for it, $174,000. The real estate agent charged a 5% fee for selling the house. Find the average monthly cost of the house taking into consideration the monthly payments, the costs of buying and selling, and the equity built up over 2 years. (Round your answer to the nearest cent.) $

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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Patti and Jaime bought a house for $187,600. They put 20% down and obtains a simple interest amortized loan for the rest at 6 3/8 % interest for thirty years. a) Find their monthly payment.b) Find the total interest paid. c) Prepare an amortization schedule for the first two months of the loan
Chad purchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a mortgage for the rest of the amount at 6.25% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. a. Calculate the principal balance at the end of the 5-year term. b. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 6.00% compounded semi-annually?
Shirley Trembley bought a house for $185,300. She put 20% down and obtains a simple interest amortized loan for the rest at 6 3 8 % for thirty years. (Round your answers to the nearest cent.) (a) Find her monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $ (d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?$ per month
Michael Sanchez purchased a condominium for $83,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. PaymentNumber MonthlyPayment(in $) MonthlyInterest(in $) Portion Usedto ReducePrincipal(in $) LoanBalance(in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,610 and the hazard insurance premium is $760 per year, what is the total monthly PITI of Michael's loan (in $)? $ Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments(Necessary to amortize a loan of $1,000) InterestRate (%) 5Years 10Years 15Years 20Years 25Years 30Years 35Years 40Years…
Amy financed the purchase of her living room suite over two years. Her monthly payments are $231.02 and she is charged an interest rate of 19.6% compounded semiannually. What was the purchase price of Amy’s furniture? ____________ b. How much is the cost of financing? _____________
Suppose you inherit $100,000 at age 25 and immediately invested in a growth fund who’s annual rate of return average is 13%. Five years later, you transfer all proceeds from the scrubs fun into a long-term IRA that pays an average annual rate of 8%. Immediately you start making additional contributions of $7000 per year to the same IRA. Assuming continuous interest, steady interest rates, and a perfect record of making annualcontributions, how much is this IRA worth when you reach the age of 65? The formula that will need to be used is A = P e^r*t + D/r (e^r*t - 1). Hint: use the continuous interest formula to find the accumulated amount for the first five years, which is then the annual investment, P, into the IRA.
Frankie purchased a house for $185,000 . He put 20% of the purchase down as a down payment. He financed the house for 4.25% for 15 years. The annual taxes are $1250 and the annual insurance is $1056. What is his monthly principal, interest, tax and insurance (PITI) mortgage payment.
A couple found a house selling for $115,500.The taxes on the house are $1200 per year, and insurance is $360 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4850. They have more than 10 monthly payments remaining on a car, a boat, and furniture. The total monthly payments for these items is $420. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts a) through g) below. Part 1 a) Determine the required down payment. The required down payment is $?
The Simpsons are moving into their new home. They purchased it for $250,000 by putting a down payment of $120,000 towards the purchase and paying the balance with a $130,000 mortgage amortized over 20 years at 6.75% per annum ( for a 3-year term). At the end of the 3-year term, the interest rate increased by 0.5%. What is the approximate increase in their monthly payment?
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Michael Sanchez purchased a condominium for $73,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. PaymentNumber MonthlyPayment(in $) MonthlyInterest(in $) Portion Usedto ReducePrincipal(in $) LoanBalance(in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,640 and the hazard insurance premium is $730 per year, what is the total monthly PITI of Michael's loan (in $)? $
Tomas purchased a new heating and air-conditioning system for his home and financed $6,700 at an annual interest rate of 4.2% compounded monthly for 3 years. What are Tomas's monthly payments (in dollars)? Round your answer to the nearest cent.

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