uiz grades are automatically generated after completion of the quiz.D Question 1You want to take out a fully-amortizing 30-year mortgage. You can afford monthly payments of $800each. The interest rate is 6%. How much money can you borrow?O $11,012O $134.100O $133,433O $288,000

Mortgage: Mortgage is a kind of loan taken for a certain period and interest is paid over the amount…

Answered: Question 1 You want to take out a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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12. Amortized loans Mortgages and other amortized loans (meaning equal or blended payments) involve regular payments at fixed intervals. These are sometimes called reverse annuities, because you get a lump-sum amount as a loan in the beginning, and then you make the periodic payments (usually monthly or more frequently, depending on the agreement) to the lender. You've decided to buy a house that is valued at $1 million. You have $400,000 to use as a down payment on the house, and you take out a mortgage for the rest. Your bank has approved your mortgage for the balance amount of $600,000 and is offering you a 25-year mortgage with 12% fixed nominal interest rate (called the APR, or Annual Percentage Rate) compounded semiannually. According to this proposal, what will be your monthly mortgage payment? OOO $7,740 $6,192 $8,359 $9,598 Your friends suggest that you take a 15-year mortgage, because a 25-year mortgage is too long and you will lose a lot of money on interest. If your bank…
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Question 1 You are buying a $300,000 house. You will make the standard 20% down payment, and will finance the rest for 30 years. Your interest rate is 6%. What percentage of your first 10 payments will go just to pay interest on the loan? a) 17% b) 69% c) 83% d) 31% e) 6%
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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?
son.3
Intro You take out a 360-month fixed-rate mortgage for $100,000 with a monthly interest rate of 0.4%. Part 1 What is the monthly payment? 0+ decimals Submit
QUESTION 15 You have found your dream house for your family. The house is listed at $500,000. You are planning to take out a mortgage of a principal of $350,000 to finance the purchase. The mortgage market is competitive and the current market rate for 30-year fixed rate mortgage is 6%. Of the first payment, the interest payment is , while the amount of principal is . a. $2,042; $287 b. $1,750; $348 c. $1,164; $1,164 d. $1,049; 1,049
What interest rate would it take for a 30 year mortgage to buy a $415,000 house with a $2,000 monthly payment? 3. A) 3.636% 4. B) 4.078% 5. C) 4.276% 6. D) 4.897% N= 360
Mortgage, part 1 (The Loan)5 years ago you purchased a home for $215,000. You made a 10% down payment and paid for the rest with a 30 year mortgage with a rate of 4.65%. How much was the down payment? How much of the purchase price did you finance with the loan? What is your monthly payment? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much of the loan is left to pay after the first 5 years? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much did you pay to the lender (total) over the first 5 years? How much of what you paid to the lender in the first 5 years was interest? If you paid this loan for all 30 years, how much interest would you pay?

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Question 1 You want to take out a fully-amortizing 30-year mortgage. You can afford monthly payments of $800 each. The interest rate is 6%. How much money can you borrow? O $11.012 O $134.100 O $133,433 O $288.000