Joe purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6.5% for a 25-year mortgage. The principal after the first payment had abalance outstanding of:Multiple ChoiceO$207,270.95None of these$207,720.95$207,270.59$207,722.24

Here's how to calculate the principal balance after the first mortgage payment: Step 1: Calculate…

Answered: Joe purchased a new colonial home for…

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

See similar textbooks

Similar questions

Mike Jones bought a new split-level home for$150,000 with 20% down. He decided to use Victory Bank for his mortgage. They were offering 13 3/4% for 25-year mortgages (11.85%). Provide Mike with an amortization schedule for two periods. 1. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ?? 2. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ??
Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage, Craig's monthly payment is (use the table in the handbook): Multiple Choice None of these $1,431.30 $1,505.40 $1,505.04 ) $1,413.30 acer
Mike Jones bought a new split-level home for $150,000 with 20% down. He decided to use Quicken Loans for his mortgage. Quicken was offering 3 3/4% for 25-year mortgages. Provide Mike with an amortization schedule for three periods. (Use Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Payment number Portion to interest Portion to principal Balance of loan outstanding 1 241.96 $119,758.04 2 3 243.47 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651…
Dick Hercher bought a home in Homewood, Illinois, for $230,00O. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is: Multiple Choice $327,372.80 None of these $184,000.00 $242,144.00 $242,411.00 acer
Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is: Multiple Choice $368,000 $327,372.80 $302,554 $242,042
Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage, Craig's monthly payment is: Multiple Choice $1,650.97 $1,430.84 $1,505.04 $1,736.59
Mike Jones bought a new split-level home for $150,000 with 20% down. He decided to use Quicken Loans for his mortgage. Quicken was offering 33% for 25-year mortgages. Provide Mike with an amortization schedule for three periods. (Use Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Payment number 1 2 3 Portion to- Interest Principal Balance of loan outstanding
Sally purchased a home in Georgia for $167,500. She took out a mortgage for 80% of the purchase price at a 7.75% interest rate and put up a 20% down payment. The sale closed on March 16. What is the total dollar amount of the prepaid interest? Select one: a. $452.08 b. $461.55 C. $455.23 d. $576.94
Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using the formula or calculator, his monthly payment is: Multiple Choice $1,422.15 $1,319.40 $1,216.80 $1,137.72
Joe Levi bought a home in Arlington, Texas, for $160,000. He put down 30% and obtained a mortgage for 30 years at 6 1/8 %. What is the difference in interest cost if he had obtained a mortgage rate of 5 1/2 %? (Use Table 15.1.) TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 5.5 0.45833 10.85263 8.17083 6.87887 6.14087 5.67789 5.1577 5.625 0.46875 10.91467 8.23732 6.94966 6.21575 5.75656 5.24302 5.75 0.47917 10.97692 8.3041 7.02084 6.29106 5.83573 5.32888 5.875 0.48958 11.03938 8.37118 7.09238 6.36682 5.91538 5.41525 6 0.5 11.10205 8.43857 7.16431 6.44301 5.99551 5.50214
Stu Reese has a $150,000 7 ½% mortgage. His monthly payment is $1,010.10. His first payment will reduce the principal to an outstanding balance of: Multiple Choice $148,989.90 $149,927.40 $72.60 $937.50
Visno

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS