Number of Years for the LoanAnnual Interest3102030Rate4%$29.53$22.58$10.12$6.06$4.775%29.9723.0310.616.605.376%30.4223.4911.107.166.008%31.3424.4112.138.367.3410%32.2725.3613.229.658.7812%33.2126.3314.3511.0110.29A borrower took out a mortgage loan for 20 years in the amount of $95,000 with an annual interest rate of 12%.a. Use the table of monthly payments on $1,000 loan, to find the monthly payment for this mortgage. $b. Find the total interest paid on the loan. $

Given:P = $95,000r = 12% or 0.12t = 20 yearsn = 12 Solution:a). - From the given table, the monthly…

Answered: Number of Years for the Loan Annual…

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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Winett Corporation is considering an investment in special-purpose equipment to enable the company to obtain a four-year municipal contract. The equipment costs $222,000 and would have no salvage value when the contract expires at the end of four years. Estimated annual operating results of the project are as follows. Revenue from contract sales. Expenses other than depreciation Depreciation (straight-line basis) Increase in net income from contract work $211,000 55,500 All revenue and all expenses other than depreciation will be received or paid in cash in the same period as recognized for accounting purposes. Compute the following for Winett's proposal to undertake this contract. a. Payback period b. C. a. Payback period. b. Return on average investment. (Round your percentage answer to 1 decimal place (i.e., 0.123 to be entered as 12.3).) c. Net present value of the proposal to undertake contract work, discounted at an annual rate of 10 percent. (Refer to the annuity table in…
Loan Amount Loan Term Fully Amortized Interest Rate Origination Fee Prepayment Penalty 7.5% 8.1% 9.6% Old Loan 4,000,000 30 years Yes 7% 3% 7% 10.1% New Loan What is the internal rate of return of refinancing the old loan at the end of Year 10? (choose the closest answer) 6.8% 20 years Yes 5.5% 4% 3%
Conchita has made a $210,400 loan for a home. Her 22-year fixed-rate loan has an interest rate of 6.00%. Create an amortization schedule for the first two payments. E Click the icon to view the table to find the monthly payment of principal and interest per $1,000 of the amount financed. Complete the table for the first month below. Monthly End-of-month Month payment Interest Principal principal 1 (Round to the nearest cent as needed.) Complete the table for the second month below. Monthly рayment End-of-month Month Interest Principal principal 2 (Round to the nearest cent as needed.)
ST Unit 8 Quest (11U) + pQLSf8ziezOsWz6j9T7OGVQSHI-6ls9bQrlQevfkKxle-RtQ3Rlg/formResponse Question 6: How much was the amount of the original loan? Regular Payment Rate of Compound Interest per Year Compounding Period semi-annual $1575 every 6 months 5.4% $8445.09 $17076.01 a. b. $14 444.94 $24 143.61 a b C. d. Time 6 years
Bank 3 Liabilities (millions) 9. 17 Assets (millions) Maturities 1 day +1 day-3mos +3 mos-6 mos +6 mos-12 mos +l year- 5 years 6. 11 10 43 15 52 90 11 Use the Repricing Model. If interest rates rise by 56 basis points for assets and 142 basis points for liabilities over the next year, then how will impact the interest income of Bank 3 over the next year? O Bank 3 will experience a loss of $1,483,000 O Bank 3 will experience a gain of $679,400 Bank 3 will experience a loss of $679,400 Bank 3 will experience a gain of $1,953,400
Jamie needs a new roof on her house. The cash cost is $5600. She decides to finance the project by paying 6.0% down, with the balance paid in 12 monthly payments of $463. a) What finance charge will Jamie pay? b) What is the APR to the nearest half percent? Click the icon to view the APR table. a) The finance charge is $ b) The APR is %.
Face value (principal) $ TABLE 7-1 50,400 Day of month 1 2 3 4 Rate of interest 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 31 Jan. 9% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Exact days-in-a-year calendar (excluding leap year)" Length of note 90 days 28 Feb. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 31 Mar. 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 30 Apr. Maturity value 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 31 May 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 30 31 31 30 June July Aug. Sept. 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 Date of note January 12 189 190 191…
Name Principal Interest rate Total Interest per year Term (in Total months) Interest to be paid Total loan amount to be paid I Peter $3500 5% 36 Rich 2700 4.5% 48 Julio 4200 7% 24 Mary 6800 6% 18 Robert 3000 5.5% 8. Nora 5500 8.75% 6. Jacky 4750 9.5% 11 Ted 7500 6.5% 36 Marvin 14000 7.5% 40 Oli 18000 5% 48
Stephen has just purchased a home for $162,000. A mortgage company has approved his loan application for a 30-year fixed-rate loan at 5.00%. Stephen has agreed to pay 30% of the purchase price as a down payment. How much would Stephen's monthly payment increase for a 20-year mortgage over a 30-year mortgage? E Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed. The monthly payment would increase by S. (Round to the nearest cent as needed.)
Stephen has just purchased a home for $146,000. A mortgage company has approved his loan application for a 30-year fixed-rate loan at 4.75%. Stephen has agreed to pay 30% of the purchase price as a down payment. Find the down payment, amount of mortgage, and monthly payment. Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed. The down payment is about S . (Round to the nearest cent as needed.)
Question 19 What is the effective semi-annual interest rate of a loan 8.45% quoted annual interest rate compounded monthly? %4.23 4.545% 6.25% 4.3%

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