Problem 2: Judy gets financing for a home loan on a $900,000 single bedroom, one bath 500 sq ft. home in a great part of Santa Cruz (near the Boardwalk). She can amortize the $900,000 at 7.5% for 30 years. What are the monthly payments of the loan? Be sure to circle answer. Round answer to nearest whole dollar.

Problem 2: Judy gets financing for a home loan on a $900,000 single bedroom, one bath 500 sq ft. home in a great part of Santa Cruz (near the Boardwalk). She can amortize the $900,000 at 7.5% for 30 years. What are the monthly payments of the loan? Be sure to circle answer. Round answer to nearest whole dollar.

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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Not sure where to start this one Suppose that you purchase a new home that costs $180,000. A local bank offers you a 3% fixed rate mortgage loan for 30 years. Also, you are required to make a 20% down payment immediately. a) Find your monthly payment. b) Find the interest amount and the principal amount in your first monthly payment. c) Find the total interest paid for 30 years.
Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
Mr. and Mrs. Williams are buying a new house for $350,000. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment Monthly Payment Total 10% down payment, 5.5% APR for 30 years 15% down payment, 4.5% APR for 25 years
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You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.66% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? $ (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? (c) How much equity (in dollars) do you have in the garden after 4 years? $
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