Repay Principal and Interest on a $1000 mortgage. Annual Term of Mortgage (years) rate () (r) 10 15 20 25 30 40 3.0% 17.96869 9.65607 6.90582 5.54598 4.74211 4.21604 3.57984 3.5% 18.19174 9.88859 7.14883 5.79960 5.00624 4.49045 3.87391 4.0% 18.41652 10.12451 7.39688 6,05980 5.27837 4.77415 4.17938 4.5% 18.64302 10.36384 7.64993 6.32649 5.55832 5.06685 4.49563 5.0% 18.87123 10.60655 7.90794 6.59956 5.84590 5.36822 4.82197 5.5% 19.10116 10.85263 8.17083 6.87887 6.14087 5.67789 5.15770 6.0% 19.33280 11.10205 8,43857 7.16431 6.44301 5.99551 5.50214
Repay Principal and Interest on a $1000 mortgage. Annual Term of Mortgage (years) rate () (r) 10 15 20 25 30 40 3.0% 17.96869 9.65607 6.90582 5.54598 4.74211 4.21604 3.57984 3.5% 18.19174 9.88859 7.14883 5.79960 5.00624 4.49045 3.87391 4.0% 18.41652 10.12451 7.39688 6,05980 5.27837 4.77415 4.17938 4.5% 18.64302 10.36384 7.64993 6.32649 5.55832 5.06685 4.49563 5.0% 18.87123 10.60655 7.90794 6.59956 5.84590 5.36822 4.82197 5.5% 19.10116 10.85263 8.17083 6.87887 6.14087 5.67789 5.15770 6.0% 19.33280 11.10205 8,43857 7.16431 6.44301 5.99551 5.50214
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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Transcribed Image Text:Monthly payments to Repay Principal and Interest on a $1000 mortgage
Annual
Term of Mortgage (years)
rate
()
(r)
10
15
20
25
30
40
3.0%
17.96869
9.65607.
6.90582
5.54598
4.74211
4.21604
3.57984
3.5%
18.19174
9.88859
7.14883
5.79960
5.00624
4.49045
3,87391
4.0%
18.41652
10.12451
7.39688
6.05980
5.27837
4.77415
4.17938
4.5%
18.64302
10.36384
7.64993
6.32649
5.55832
5.06685
4,49563
5.0%
18.87123
10.60655
7.90794
6.59956
5.84590
5.36822
4.82197
5.5%
19.10116
10.85263
8.17083
6.87887
6.14087
5.67789
5.15770
6.0%
19.33280
11.10205
8.43857
7.16431
6.44301
5.99551
5.50214
6.5%
19.56615
11.35480
8.71107
745573
6.75207
6.32068
5.85457
7.0%
19.80120
1.61085
8.98828
7.75299
7.06779
6.65302
6.21431
7.5%
9.27012
7.38991
20.03795
11.87018
8.05593
6.99215
6.58071
8.0%
20.27639
12.13276
9.55652
8.36440
7.71816
7.33765
6.95312
8.5%
20.51653
12.39857
9.84740
8.67823
8.05227
7.68913
7.33094
20.51653
12.39857
9.84740
8.67823
8.05227
7.68913
7.33094
8.5%
12.66758
10.14267
8.99726
8.39196
8.04623
771361
9.0%
20.75836
10.44225
9.32131
8.73697
840854
8.10062
9.5%
21.00186
12.93976
13.21507
10.74605
965022
908701
8.77572
8.49146
10.0%
21.24704
11.05399
9.98380
944182
9.14739
8.88570
10.5%
21.49390
13.49350
11.36597
10.32188
9.80113
4.52323
9.28294
11.0%
21.74242
13.77500
Print
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Transcribed Image Text:Consider a situation where homebuyers find the home of their dreams priced at $330,000. They have saved a 20% down payment and are prequalified for a
20-year, $264,000 fixed-rate mortgage at 3.5%. Recaling that mortgage interest is income tax deductible, find the additional net monthly savings resulting
from changing the mortgage term from 20 yoars to 30 yoars.
Click the icon to view the Real Estate Amortization Table.
The net monthly savings is $
(Round to the nearest dollar as needed.)
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