11 ageLynn's monthly mortgage payment is $900 per month. Her mortgage meets all the criteria for an ordinary annuity.Which of the following statements is true regarding Lynn's monthly mortgage payments?Select one:O A. The interest expense portion of Lynn's monthly payment will stay the same over time.O B. The amount of cash that Lynn pays each month will decrease over time.O C. The interest expense portion of Lynn's monthly payment will decrease over time.O D. The interest expense portion of Lynn's monthly payment will increase over time.Ne

Mortgages are a sort of loan that can be utilized to buy or keep up a house, land, or another piece…

Answered: Lynn's monthly mortgage payment is $900…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 14MCQ

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Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments of $100.00 per month for a certain amount of time. If the interest rate on the loan is 0.66 percent per month, she makes her first $100.00 payment later today, and she makes her final monthly payment of $100.00 in 12 months, then what is X, the amount of the loan? A O An amount less than $1,153.00 or an anmount greater than $1,324.00 O An amount equal to or greater than $1,153.00 but less than $1,199.00 O An amount equal to or greater than $1,199.00 but less than $1,245.00 O An amount equal to or greater than $1,245.00 but less than $1,275.00 O An amount equal to or greater than $1,275.00 but less than $1,324.00
Sandra has a 30-year, P100,000 mortgage with a nominal interest rate of 10 percent and monthly compounding. Which of the following statements regarding his mortgage is most correct? * a.The monthly payments will decline over time. b.The proportion of the monthly payment that represents interest will be lower for the last payment than for the first payment on the loan. c.The total dollar amount of principal being paid off each month gets larger as the loan approaches maturity. d.None of the statements are correct. e.Statements b and c are correct.
5. Gabriela's monthly payments of $567.89 will pay off her mortgage loan in 7 years and 5 months. The interest rate on her mortgage is 6.6% compounded monthly. What is the current balance on the loan?
Janelle has a 30-year mortgage, but instead of making monthly payments, she is making rising payments every two years. As a result, she will end up repaying her loan in less than 30 years. Janelle’s loan is an example of a(n) A : growing equity mortgage. B : reverse annuity mortgage. C : adjustable rate mortgage. D : graduated payment mortgage.
Jane took out a loan from the bank today for X. She plans to repay this loan by making payments of $520.00 per month for a certain amount of time. If the interest rate on the loan is 1.12 percent per month, she makes her first $520.00 payment later today, and she makes her final monthly payment of $520.00 in 7 months, then what is X, the amount of the loan? O An amount less than $3,501.00 or an anmount greater than $4,238.00 O An amount equal to or greater than $3,501.00 but less than $3,739.00 O An amount equal to or greater than $3,739.00 but less than $3,980.00 O An amount equal to or greater than $3,980.00 but less than $4,081.00 O An amount equal to or greater than $4,081.00 but less than $4,238.00
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Alex has just obtained a 7-year fixed-rate mortgage to buy her first condo. The mortgage is amortized over 25 years. Which of the following statement is most correct? a. Alex's payrments will not change for the next 25 years. O b. Alex's payments will not change for the next 7 years. Oc. Alex's payments will increase as the term of the mortgage increases. O d. Alex's payments will increase as the amortization period of the mortgage increases. e. Alex's payments will decrease as the term of the mortgage increases.
When Sara Jean purchased her house 12 years ago, she took out a 30-year mortgage for $220,000. The mortgage has a fixed interest rate of 6% compounded monthly. (a) Compute Sara Jean’s monthly mortgage payments. (b) If Sarah Jean wants to pay off her mortgage today, for how much should she write a check? She made her most recent mortgage payment earlier today.
Abigail's calculations show that the total interest owed to Sanjeev on her 3, 700 loan is 177.60. If she paid simple interest at the rate of 0.4% per month, for how long did Abigail borrow the money? Note: Please make sure your final answer(s) are rounded up to the next whole month.
2. Assume Josephine purchases a home for $180,000 and has a 20% down payment. If she finances the purchase with a 30 year mortgage with a 4% interest rate……what is her monthly payment? If she pays the mortgage through the entire term with no early payment, how much interest will she pay over the life of the loan?
9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
Suppose you take a $268,188 30-year fixed-rate mortgage at 5.86%, 4 discount points, monthly payments. At the end of year 3 you inherit $15,193 from your now-favorite aunt. You decide to apply this $15,193 to the principal balance of your loan. What is your net interest savings over the life of the loan, assuming the loan is held to its maturity?

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