Problem 7-3 (LG 7-4) You plan to purchase an $110,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 4.25 percent. You will make a down payment of 12 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 100th payment. c. Calculate the amount of interest and, separately, principal paid in the 115th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Monthly payment b. Amount of interest Amount of principal C. Amount of interest Amount of principal d. Amount of interest paid Amount

Problem 7-3 (LG 7-4) You plan to purchase an $110,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 4.25 percent. You will make a down payment of 12 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 100th payment. c. Calculate the amount of interest and, separately, principal paid in the 115th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Monthly payment b. Amount of interest Amount of principal C. Amount of interest Amount of principal d. Amount of interest paid Amount

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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QUESTION 1 Afamily planning to buy a house can afford a monthly payment of $1650.00. What is the maximum amount of 20 year-long mortgage they can afford taking, given that the bank charges 3.75% per year compounded monthly? Attach File Browse Local Files
Question 1 A family has a 30-year $880, 000 mortgage at 8% compounded monthly. (1) Find the monthly payment and the total interest paid (2) After 10 years, suppose the family decides to add an extra $150 to its mortgage payment each month. How long will it take the family to pay off the remain mortgage? (3) How much interest will the family save?
OLA#9.1: A 30-year, $450,000 mortgage at 3.30% compounded annually is repaid with monthly payments. a. What is the size of the monthly payments? b. Find the balance of the mortgage at the end of 7 years? c. By how much did the amortization period shorten by if the monthly payments are increased by $125 at the end of year seven?
Level 2 Chapter 14 - Section I - Exercise 15 Ben and Mal Scott plan to buy a home for $272,900. They will make a 10% down payment and qualify for a 25-year, 7% mortgage loan. a. What is the amount of their monthly payment? Home price = Percent down = Amount financed = Number of 1000s financed = 7%, 25-year table factor = Monthly payment = b. How much interest will they pay over the life of the loan? Number of payments = Total interest =
Date Name Section 8.7 - Worksheet The Cost of Home Ownership Comparing Mortgage Interest for 30-year rate vs 15-year rate. In the lesson notes example, the $175,500 mortgage was financed with a 30-year fixed rate at 7.5%. The total interest paid over 30 years was approximately $266,220. a) Use the loan payment formula for installment loans to find the monthly payment if the time of the mortgage is reduced to 15 years. Round to the nearest dollar. b) Find the total interest paid over 15 years. c) How much interest is saved by reducing the mortgage from 30 to 15 years?
Question 2 Assuming you only make the required monthly payments, how much will you still owe on 30 year mortgage at the end of 139 months. Assume an initial principal amount of 525,587 and an APR of 3% with monthly compounding.
Question Help 5.5.15 A $244,500 mortgage for 15 years for a new home is obtained at the rate of 8.9% compounded monthly. Find (a) the monthly payment, (b) the interest in the first payment, (c) the principal repaid in the first payment, and (d) the finance charge. (a) The monthly payment on the mortgage is $ (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
V4. A $200,000 30 year mortgage with a contract rate of 8.94%, $3000 closing costs (lawyer, appraisal, and transfer tax) and $1,000 in discount points (i.e mortgage setup fee). The monthly mortgage payment is determined to be $1600. what will be the effective borrowing rate if the borrower decides to pay off the loan at the end of year 8? Assume that the mortgage is based on monthly compounding.
please use ba II when able A homeowner has five years of monthly payments of $1,100 before she has paid off her house. If the interest rate is 5% APR, what is the remaining balance on her loan? A. $46,632 B. $69,948 C. $58,290 D. 81, 606
Suppose you take out a $185,500 mortgage for 30 years at 5.15% interest. (a) Find the monthly payment on this mortgage. S (b) Fill out the first two rows of the amortization schedule below. Round your answers to the nearest dollar. Payment Number Interest Payment Principal Payment Balance of Loan 1 2 Question Help: D Video M Message instructor D Post to forum
Narrative 14-1For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, whennecessary. Refer to Narrative 14-1. You purchase a home for $69,750 at 6.75% for 30 years. The property taxes are $2,450per year, and the hazard insurance premium is $256 semiannually. Find the monthly PITI payment. Group of answer choices 699.51 $594.73 $1,059.40 $246.83
effective rates of interest find the interest rate earned on each of the following : a. You borrow $700and promise to pay back $749 at the end of 1 year b. You lend $700 and borrower promises to pay you $749 at the end of 1 year c. You borrow $8,500 and promise to pay back $201,229 at the end of 10 years d. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each year for 5 years

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