Question 5 of 6 Leah received a 25 year loan of $285,000 to purchase a house. The interest rate on the loan was 3.30% compounded semi-annually. a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent b. What is the balance of the loan at the end of year 2? $0.00 Round to the nearest cent 0 years c. By how much will the amortization period shorten if Leah makes an extra payment of $30,000 at the end of year 2? 0 months

Question 5 of 6 Leah received a 25 year loan of $285,000 to purchase a house. The interest rate on the loan was 3.30% compounded semi-annually. a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent b. What is the balance of the loan at the end of year 2? $0.00 Round to the nearest cent 0 years c. By how much will the amortization period shorten if Leah makes an extra payment of $30,000 at the end of year 2? 0 months

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 11 You plan to deposit $300 at the end of every year for 12 years starting at the end of year 1. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays 8% interest annually? Question 3 Part C: Provide the value that can be withdrawn. Enter your answer in the form: 12345.67
Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a $17,000 loan given that the lender requires her to make annual end-of-year installment payments of $2,745. a. If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully? b. How long will it take if the interest rate is 9%? c. How long will it take if she has to pay 15% annual interest? d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.
House Mortgage Suppose you purchase a house for $592,978 and make a down payment of 14% of the purchase price. The balance is amortized over 22 years. The house mortgage agreement is subject to 3.3479% compounded semi-annually for the first four years and requires equal monthly payments. What is the size of the equal monthly payments for the first four years? What is the house mortgage balance at the end of the four years? Perform this calculation using Excel, without an amortization schedule. After four years, the house mortgage is refinanced at a reduced nominal rate of 3.1469% compounded semi-annually and the house mortgage is amortized over the remainder of the term. What is the size of the new mortgage payments for the remainder of the term? What is the size of the final loan payment? Perform this calculation in Excel, without an amortization schedule. Prepare one complete amortization schedule showing the mortgage amortized over the full 22-year period (reflecting the change in…
Bhupatbhai
12.1 pg. 219-220 Find the monthly payment for each loan below. Remember to assume monthly compounding. 5. Jerry signs a $16,000 loan for the purchase of anew car. The term is for 48 months, at an interest rate of 4.8%. What is Jerry’s monthly payments?
F3
Question 6 You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded semiannually. Monthly payments will be made until all the principal and interest have been paid. What is your monthly payment? Use the editor to format your answer
QUESTION 10 Ann gets a 30 year 3/1 Fully Amortizing ARM for $1,000,000, with monthly payments and monthly compounding. Ann pays $10,000 in closing costs. The initial rate is 2.50%. In the future, the rate will reset to 250 basis points above the LIBOR. There are no rate caps or floors. Suppose at origination and at the rate reset the LIBOR was 1%. Part 1: What is the loan balance when the rate resets (round to nearest whole number and enter without commas, e.g. 123,456 enter as 123456)? Part 2: What is the annualized true APR for the loan (round two decimal places and enter without % sign, e.g. 4.95% enter as 4.95)?
Richard Miyashiro purchas a condominium and obtained a 20-year loan of $197,000 at an annual interest rate of 8.15%. Find the amount of interest paid on the mortgage loan over the 20 years.
aa.2 Joe purchases a $100,000 home. Mortgage payments are to be made monthly for 30 years, with the first payment to be made one month from now. The annual effective rate of interest is 5%. After 10 years, the amount of each monthly payment is increased by $325.40 in order to repay the mortgage more quickly. Calculate the amount of interest paid over the duration of the loan.
None
1 Borrow $178,000 at 5.25% for 30 years 2 Borrow $178,000 at 4.00% for 15 years What are the 2 payments? How much interest is paid out under each loan? How much is saved with the 15 year note? And, where does the saved interest end up?

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