LoanBasicsInputsPresent value325,000Interest rate/yearNumber of years4.00%30Present Value using a Time LineYear1015202530Beginning Principal BalancePaymentInterest componentPrincipal component 1. To purchase a house, you take out a 30 year mortgage. The present value (loan amount) of the mortgage is $325,000.The mortgage charges an interest rate/year of 4.00%. What is the annual payment required by this mortgage? Howmuch of each year's payment goes to paying interest and how much goes to reducing the principal balance? Useworksheet "Loan".

Answered: Loan Basics nputs Present value nterest…

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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annuity payment years interest rate2400 7 5%1400 9 40/612580 17 6%32150 23 8% calcularte the cash flow
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%
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After graduation, you plan to work for Asia Corporation for 12 years and then start your own business. You expect to save and deposit Php7,500 a year for the first 6 years (n = 1 through n = 6) and Php15,000 annually for the following 6 years (n = 7 through n = 12). The first deposit will be made a year from today. In addition, your grandfather just gave you a Php25,000 graduation gift which you will deposit immediately (n = 0). If the account earns 8% compounded annually, how much will you have when you start your business 12 years from now? A.Php228,145 B. Php250,712 C. Php260,302 D. Php263,907 E. Php277,797
Select all that are true with respect to historical data on risk and return in the U.S. financial markets since about 1926, Group of answer choices A portfolio of small stocks has earned higher returns than large stocks, with less risk A portfolio of small stocks has earned higher returns that large stocks, with higher risk Stocks have outperformed government bonds, albeit with higher risk With respect to a diversified stock portfolio, the longer the holding period, the higher the risk. With respect to a diversified stock portfolio, the longer the holding period, the lower the risk.
fx D. Amount of loan: %24 50,000 Annual payment: %24 10,000 Interest rate: 8% 6. How many years will it take to pay off the loan?
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…
How do I get the beginning book value for the second year, third year and the fourth year??
Fill in the missing values A through D in the table for a loan of $10,000, if the interest rate is compounded at 10% per year.
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…

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Loan Basics nputs Present value nterest rate/year Number of years 325,000 4.00% 30 Present Value using a Time Line Year 10 15 25 30 Beginning Principal Balance Payment nterest component Principal component 20