Quantitative Problem: You need $18,000 to purchase a useel car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you... to make annual payments for 4 years. with the first payment to be made ane year from today. He requires on 8% annual return. a) What will be your amual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. b) How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent. Interest Punapal repayment

Quantitative Problem: You need $18,000 to purchase a useel car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you... to make annual payments for 4 years. with the first payment to be made ane year from today. He requires on 8% annual return. a) What will be your amual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. b) How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent. Interest Punapal repayment

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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have tried this and keep getting the answer wrong i can’t figure it out
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)$
Suppose you want to buy a $141,000 home. You found a bank that offers a 30-year loan at 3.7% APR. What will be your monthly payment? (Round to the nearest cent.) 2$ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) 2$ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $4 How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) $ How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
C. ich total money will you pull out of the account? account at the beginning How much of that money is interest? 19. You can afford a $700 per month mortgage payment. You've found a 30 year loan at 5% interest. a. How big of a loan can you afford? b. How much total money will you pay the loan company? How much of that money is interest? C. down payn
Vijay
Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $74,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 4.75% $337.51 $42,053.00 b.25 Years, 5.25% c. 25 Years, 5.50% $363.54 $49,862.00 d. 25 Years, 5.75% e. What is the savings in interest cost between 4.75% and 5.75%? Note: Round your answer to the nearest dollar amount. Interest cost: f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest? Note: Use 360 days a year. Round your answer to the nearest dollar amount. Interest difference: TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year…
Please provide answer to part b of the question. Please answer by using formula, not excel.
A few years down the road you move out, buying your own home. You decide to take another look at your finances. Your outstanding loan of $250 per month only has 10 payments left on it (out of the original 60) with an interest rate of 12.75%. What is the finance charge “f” what is the unearned intrest how much would it cost to pay it off on payment 51
Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.84% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
The math: One point on a mortgage loan is 1% of the principal. (The principal is the amount to be financed.) Example: On a $380,000 mortgage, one point is . You are buying a house, taking out a 30-year mortgage. After making a down payment on this house, you still need to finance $205,000 plus $5000 closing costs. (This is called rolling the closing costs into the loan). So your mortgage will be $210,000 on a loan term of 30 years. Two loans are offered: Loan A: no points & an interest rate (APR) of 4.5% Loan B: 1 points & an interest (APR) rate of 4.2% As you can see, option B has a lower APR leading to lower payments, but an up-front cost. For both loans, the down payment has already been subtracted/applied. You do have the extra money saved up to pay the point if you choose Loan B, so the amount to be financed is THE SAME for Loan A and Loan B, $210,000 for loan A: Use the loan formula to calculate the monthly payment on the financed amount.…
A borrower can obtain an 80% loan with an 8% interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90% loan at an 8.5% rate with the same loan term. The borrower plans to own the property for the entire loan term. solve with finanical calucltor What is the incremental cost of borrowing the additional funds? How would your answer change if 2 points were charged on the 90% loan? Would your answer to part (b) change if the borrower planned to own the property for only 5 years?
(Q) You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio, he determines that your maximum monthly payment can be no more than $3, 200. You would like to have a 30 year fully amortizing loan and the interest rate offered on such a loan is currently 8.5%. Given these constraints, what is the largest loan you can obtain?

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