Make sure that the loan is set to $200,000 with the interest rate to 3.5% and also make this a variable rate with 7 years fixed interest, term 30 years. Variable rate ARM loans usually have lower interest rates, but after 7 years - assume the interest rate goes up by .25% 3)Task 3 - If you pay an extra $300 a month and pay $20,000 additional payment on the 85th month (or right after 7 years) .. a) how much interest will you save, b) what date will the entire loan get paid , c) how much taxes will you save, d) what is the loan balance on year 12 ? e) how much was the total payment of the entire loan, f) how much was the total interest payment
Make sure that the loan is set to $200,000 with the interest rate to 3.5% and also make this a variable rate with 7 years fixed interest, term 30 years. Variable rate ARM loans usually have lower interest rates, but after 7 years - assume the interest rate goes up by .25% 3)Task 3 - If you pay an extra $300 a month and pay $20,000 additional payment on the 85th month (or right after 7 years) .. a) how much interest will you save, b) what date will the entire loan get paid , c) how much taxes will you save, d) what is the loan balance on year 12 ? e) how much was the total payment of the entire loan, f) how much was the total interest payment
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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Make sure that the loan is set to $200,000 with the interest rate to 3.5% and also make this a variable rate with 7 years fixed interest, term 30 years. Variable rate ARM loans usually have lower interest rates, but after 7 years - assume the interest rate goes up by .25% 3)Task 3 - If you pay an extra $300 a month and pay $20,000 additional payment on the 85th month (or right after 7 years) .. a) how much interest will you save, b) what date will the entire loan get paid , c) how much taxes will you save, d) what is the loan balance on year 12 ? e) how much was the total payment of the entire loan, f) how much was the total interest payment
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Step 1: Brief the given details
VIEWStep 2: Prepare a loan amortization table
VIEWStep 3: Using the snips from the amortization above answer the following parts
VIEWStep 4: Compute tax savings & indicate the loan balance at the end of 12 years
VIEWStep 5: Compute the total interest payment & total amount paid for the loan
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