of a mortgage reduces both the size of the monthly payments and the Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount s amount saved on interest over the life of the loan. Assume the mortgage is for 10 years and use the find the monthly payments. Increase in Down Payment Down payment $62,000 $22,000 Click the icon to view a table of monthly payments on a $1,000 loan. Amount of Loan Interest Rate $253,000 5% a. The monthly payment will be reduced by $ 233.42 when the down payment is increased by $22,0 (Round to the nearest cent as needed.) b. Increasing the down payment by $22,000 saved $on interest over the life of the loan. (Round to the nearest cent as needed.)
of a mortgage reduces both the size of the monthly payments and the Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount s amount saved on interest over the life of the loan. Assume the mortgage is for 10 years and use the find the monthly payments. Increase in Down Payment Down payment $62,000 $22,000 Click the icon to view a table of monthly payments on a $1,000 loan. Amount of Loan Interest Rate $253,000 5% a. The monthly payment will be reduced by $ 233.42 when the down payment is increased by $22,0 (Round to the nearest cent as needed.) b. Increasing the down payment by $22,000 saved $on interest over the life of the loan. (Round to the nearest cent as needed.)
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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Please do not give solution in image format ?
Transcribed Image Text:Monthly Payment on a $1,000 loan
Annual Interest Rate
4%
5%
6%
8%
10%
12%
Number of Years for the Loan
10
20
$10.12 $6.06
10.61
6.60
11.10
7.16
12.13
8.36
9.65
11.01
3
$29.53
$22.58
29.97
23.03
30.42
23.49
31.34
24.41
32.27
25.36
13.22
33.21 26.33 14.35
Print
Done
30
$4.77
5.37
6.00
7.34
8.78
10.29
X
and
ed
an.
Transcribed Image Text:1)
Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid.
Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) the
amount saved on interest over the life of the loan. Assume the mortgage is for 10 years and use the amortization table to
find the monthly payments.
1)
Increase in
Amount of Loan Interest Rate Down Payment
Down payment
$22,000
$253,000
5%
$62,000
Click the icon to view a table of monthly payments on a $1,000 loan.
a. The monthly payment will be reduced by $ 233.42 when the down payment is increased by $22,000.
(Round to the nearest cent as needed.)
b. Increasing the down payment by $22,000 saved $on interest over the life of the loan.
(Round to the nearest cent as needed.)
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