Marisol took out a fully amortizing 30 year mortgage with the initial balance of $5086 and monthly payments. This mortgage has a fixed interest rate at 4%. What percentage of her first payment is attributable to interest? ( Write the answer as a percent. So if your answer is 2.5%, it should be written as 2.5, not as 0.025)

Marisol took out a fully amortizing 30 year mortgage with the initial balance of $5086 and monthly payments. This mortgage has a fixed interest rate at 4%. What percentage of her first payment is attributable to interest? ( Write the answer as a percent. So if your answer is 2.5%, it should be written as 2.5, not as 0.025)

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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A homeowner took out a 30-year fixed-rate mortgage of $120,000. The mortgage was taken out 15 years ago at a rate of 7.95 percent. If the homeowner refinances, the charges will be $2,000. What is the highest interest rate at which it would be beneficial to refinance the mortgage? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) APR %
Question # 3: David is buying a house for $256,000. To obtain the mortgage, David is required to make a 20% down payment. David obtains a 30-year mortgage with an interest rate of 6.15%. a.) Determine the amount of the required down payment. b.) Determine the amount of the mortgage (loan amount). c.) Determine the monthly payment. d.) Determine the total amount of interest paid on this mortgage.
Mohamad's friend has just purchased a house. He tells Mohamad that he has arranged "a closed mortgage with monthly payments at 6% per year compounded semi-annually with an amortization period of 30 years and a 5-year term." Mohamad does not understand the terminology his friend is using (this is before Mohamad learned this unit). Explain the details of the mortgage in everyday language.
Jamal and Leila have been approved for a $200,000 15-year mortgage with an APR of 5.5%. How much of their first monthly payment will go to interest? Round to the penny. Remember I=PRT
7.5 The following shows the information of a bond: Type of Bond Non-callable municipal bond Issue Date 20-Jun-11 Maturity Date 20-Jun-21 Face Value 100.00 Redemption Value 100.00 Coupon Rate 8% payable semi-annual 7.5a Assume that the coupon dates of the bond are June 20 and December 20 ofeach year. Isaac bought the bond on the issue date at a price of $89. Slightlyover 4 years on August 5, 2015 Simon purchased the bond from Isaac at apurchase (dirty) price of $93.70. Find (a) the yield to maturity of the bond upon issue;
George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4, 500. He takes a 30 year fixed rate mortgage with 2. 13% interest rate and no fees. Assuming George repays the mortoage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65).
A homeowner took out a 25-year fixed-rate mortgage of $205,000. The mortgage was taken out 7 years ago at a rate of 7.05 percent. If the homeowner refinances, the charges will be $3,350. What is the highest interest rate at which it would be beneficial to refinance the mortgage? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. APR %
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
If Bobby takes out a mortgage for 30 years at an interest rate of 4% and his monthly repayments are $835.48, what is the loan principal (that is, the balance of the loan at drawdown)? Give your answer to the nearest ten dollars. Do not include commas or the dollar sign in your answer.
A homeowner took out a 15-year fixed-rate mortgage of $140,000. The mortgage was taken out 7 years ago at a rate of 7.4 percent. If the homeowner refinances, the charges will be $1,000. What is the highest interest rate at which it would be beneficial to refinance the mortgage? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. APR %
6
A mortgage loan is made to Mr. Jones for $30,000 at 10 percent interest for 20 years. If Mr. Jones has a choice between either a fully amortizing CPM or a CAM, which one would result in his paying a greater amount of total interest over the life of the mortgage? Would one of these mortgages be likely to have a higher interest rate than the other? Explain your answer.

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