Peter wants to buy a house in Edmonds that costs $400,000. He plans to pay $100,000 as a downpayment. The mortgage company is willing to give him a 5-year contract plan at a 10% interest rate compounded monthly. The mortgage will be pay off over 10 years period. i. What are Peter's monthly payments? ii. What are the remaining payments after 5 years term of the mortgage plan?

Peter wants to buy a house in Edmonds that costs $400,000. He plans to pay $100,000 as a downpayment. The mortgage company is willing to give him a 5-year contract plan at a 10% interest rate compounded monthly. The mortgage will be pay off over 10 years period. i. What are Peter's monthly payments? ii. What are the remaining payments after 5 years term of the mortgage plan?

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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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).
You are buying a new house. You take out a 30-year mortgage for $200,000. The annual interest rate of the loan is 4.5%. Calculate the monthly payment. Please in text form so that i can copy
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Conor is comparing two potential housing options. Conor plans to stay in the home for 4 years, after which he plans to move again. Conor earns 12% annually on his other investments. He determines the following information about each option: OPTION 1: Purchase a home • Purchase a $270,000 home with a 30-year fixed mortgage • Loan amount = $270,000 (100% financing) • Annual mortgage interest rate = 6.00% Monthly mortgage payments = $1,618.79 • Additional monthly costs (insurance, taxes, maintenance) = $350.00 • Real estate growth rate = 5% annually .
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Marie and Danny Would like to buy a house for $220,000. The down payment for the mortgage is 30% of the price of the house. To earn the down payment, they invest $2500 a quarter at 6.2% compounded quarterly. They take a 30-year home mortgage for the rest of the price of the house at 7.3% compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $2000 per month. How much is the down payment? How long will it take Marie and Danny to earn the down payment if they invest $2500 a quarter at 6.2% compounded quarterly? How much is the loan for the mortgage? What is the regular monthly payment? What is the unpaid balance when they begin paying the $2000? How many payments of $2000 will it take to pay off the loan? Give the answer correct to wo decimal places. How much interest will they save by paying the loan this way? Use your answer from #6 to find.
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