M purchased a small lot in a subdivision, paying $200,000 down and promising to every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly answer the next 3 questions: Q9: What was the cash price of the lot? B. $545,722 A. $546,722 C. $545,622 D. $546,522 A. $445,890 Q10: If M missed the first 12 payments, what must he pay at the time the 13th is due to bring himself up to date
M purchased a small lot in a subdivision, paying $200,000 down and promising to every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly answer the next 3 questions: Q9: What was the cash price of the lot? B. $545,722 A. $546,722 C. $545,622 D. $546,522 A. $445,890 Q10: If M missed the first 12 payments, what must he pay at the time the 13th is due to bring himself up to date
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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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Transcribed Image Text:M purchased a small lot in a subdivision, paying $200,000 down and promising to pay $15,000
every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly
answer the next 3 questions:
Q9: What was the cash price of the lot?
B. $545,722
A. $546,722
A) $300,000
C. $545,622
D. $546,522
Q10: If M missed the first 12 payments, what must he pay at the time the 13th is due to bring himself
up to date
B) $234,980
C) $235,271
D) $578,678
E) $356,789
A) $$234,271
Q11: After making 8 payments, M wished to discharge his remaining indebtedness by a single payment
at the time when the 9th regular payment was due, what must he pay in addition to the regular
payment then due?
B) $120,000
C) $480,000
A. $445,890
D) $390,000
E) Snone of
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