Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compounding. Withthis mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank offers you thefollowing deal: Instead of making the monthly payment of $2,000 every month, you can make half the payment everytwo weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take to pay off themortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8decimal places.The number of payments will be(Round to two decimal places.)

Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compour this mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank following deal: Instead of making the monthly payment of $2,000 every month, you can make half the two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take t mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculation decimal places. The number of payments will be (Round to two decimal places.)

Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compour this mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank following deal: Instead of making the monthly payment of $2,000 every month, you can make half the two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take t mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculation decimal places. The number of payments will be (Round to two decimal places.)

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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Similar questions

How much will the monthly mortgage payment be if you purchase a new condominium for $150 000 with an interest rate of 4%/a compounded monthly? The mortgage amortization period is 25 years (there is a 5% down payment that should be paid upfront)?
Suppose your gross monthly income is $5,300 and your current monthly payments are $575. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)
to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a 5% down payment. The buyer is ffered two mortgage options: 20-year fixed at 7% or 30-year fixed at 7%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? se PMT= Find the monthly payment for the 20-year option, (Round to the nearest dollar as needed.)
Imagine you get a $450,000 closed floating rate mortgage (no CMHC needed) having a three-year term and amortized over 25 years. Although the interest rate on the mortgage would change, your monthly payments would remain fixed for the term. Monthly payments would be calculated based on APR of %4.8 compounded monthly and amortization period of 25 years. The actual amount of the interest accrued will be deducted from your fixed monthly payments and the rest would be used for principal repayment. Now, assume that the floating rate itself is 4.2% for the first 6 months, then suddenly jumps to 6% for the next 12 months, then drops to 3.6% for the next 6 months, and then declines to 3% for the final 12 months. Note that all rates are quoted as an APR and compounded monthly. Part A: How much money do you owe (i.e. what is the outstanding balance) after 18 months? Part B: How much interest did you pay over the term of the mortgage? How much was principal?
You have found your dream house. The selling price is 120,000. You will put $20,000 down and obtain a 25-year fixed-rate mortgage at 8.75% (APR compounded semiannually) for the rest. You plan to prepay the loan by making an additional payment each month along with your regular payment. How much extra must you pay each month if you wish to pay off the load in 20 years? (Assume there is no early payment penalty).
The price of a home is $180,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 10% or 30-year fixed at 10%. Calculate the amount of interest paid for pach option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount. PMT = intosh HD Find the monthly payment for the 15-year option. (Round to the nearest dollar as needed.) Find the monthly payment for the 30-year option. (Round to the nearest dollar as needed.) O Time Remaining: 01:15:52 Next 10 MacBook Air esc FS . FA F7 $ 4 % & 2 3 5 6 7 8 9 Q W E T Y %3D A S K C V
You want to buy a condo in that costs 914 700 and have accumulated a 25% down payment. The remainder is financed with a 20year mortgage over 4 a year term which you have negotiated with a local financial institution. As you are a high risk borrower the best rate you can get is an APR of 7.6% compounded semi- annually with month end payments. How much would you owe the mortgage after your 48 mortgage payment?
Suppose your gross monthly income is $5,300 and your current monthly payments are $625. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)
Vinay
Find the monthly payment for the 15- year option.
A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The loan will be $238,000 at 6 percent interest for 20 years. Required: a. hat would be the maturity period if payments are bi-weekly? How much will the borrower pay in total under each payment option? Which choice would be less costly to the borrower? Hint: Assume 26 total bi-weekly payments per year for the maturity period. b. Assume that the bi-weekly loan was available for 5.75%. What would be the maturity period if payments are bi-weekly? How much will the borrower pay in total under each payment option? Which choice would be less costly for the borrower? Complete this question by entering your answers in the tabs below. Required A Required B hat would be the maturity period if payments are bi-weekly? How much will the borrower pay in total option? Which choice would be less costly to the borrower? Hint: Assume 26 total bi-weekly payments maturity period. Note: (Do not round intermediate…
You take out a 30-year mortgage (360 months) with a face value of $200,000 and a stated annual rate of 6.0 percent. As you can calculate, your required monthly payment is $1.199.10. However, with each payment, you send your lender an extra $250.00, which directly reduces the mortgage balance each month. What is the mortgage balance after 42 months? Enter your answer to the nearest cent, with no punctuation other than a decimal. For example, if your answer is $28,542.19, enter "28542.19". Note that Canvas will delete trailing zeros, if entered.

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