Roman paid $68,800 as a down payment towards an apartment purchase and received amortgage from a bank for the remaining amount; he is to pay $6,560 at the end of everymonth for 21 years at an interest rate of 3.34% compounded monthly to repay the mortgage.a) What was the purchase price of the apartment? $b) What was the total amount Roman paid over the 21-year period to repay the mortgage? $c) How much interest was charged on the mortgage? $TVM Solver

Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…

Answered: Roman paid $68,800 as a down payment…

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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Similar questions

Marcel Thiessen purchased a home for $205,600 and obtained a 15-year, fixed-rate mortgage at 7% after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answer to the nearest cent.)
Rally bought a brand new car for P 600,000. He pays a down payment of P 150,000, balance to be amortized for the next 4 years at an interest rate of P 12% compounded monthly. a. Determine his periodic payment b. OP after 2 years c. Construct an amortization schedule.
Sanvij has bought a house in Chilliwack for $20,000. He makes a 5% down payment and will be making quarterly payments of $388. 63 to Scotia Bank for 15 years. What nominal rate of interest compounded semiannually was applied to the purchase?
Patti and Jaime bought a house for $187,600. They put 20% down and obtains a simple interest amortized loan for the rest at 6 3/8 % interest for thirty years. a) Find their monthly payment.b) Find the total interest paid. c) Prepare an amortization schedule for the first two months of the loan
Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was 3.70% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3? Round to the nearest cent c. By how much will the amortization period shorten if Cassandra makes an extra payment of $30,000 at the end of year 3? years and monthsm
Fritz Benjamin buys a car costing $7900. He agrees to make payments at the end of each monthly period for 5 years. He pays 9.6% interest, compounded monthly. (a) What is the amount of each payment? (b) Find the total amount of interest Fritz will pay. (a) Fritz's monthly payment is $ (Round to the nearest cent as needed.) (b) Fritz will pay a total of $ in interest. (Round to the nearest cent as needed.)
Chad purchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a mortgage for the rest of the amount at 6.25% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. a. Calculate the principal balance at the end of the 5-year term. b. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 6.00% compounded semi-annually?
Chen bought a vacation property for $18 900.00 down and semiannually mortgage payments of $1342 at the end of each semiannual period for eight years. Interest is 10.4% compounded semiannually. a) What was the purchase price of the property? b) How much interest will Annette pay?
K Bill and Kim Johnson are purchasing a house for $309,000. Their bank requires them to pay a 10% down payment. The current mortgage rate is 8%, and they are required to pay one point at the time of closing. Determine the total amount Bill and Kim will pay for their house, including principal, interest, down payment, and points (do not include taxes and homeowners' insurance) for the following lengths of their mortgage. a) 10 years b) 20 years c) 30 years CAT
Jerome borrowed 5200 at 8 1/2% for six years compounded semi annually. What is the future value of the loan and how much interest will he pay on the loan
Noel purchases a house and gets a 15-year mortgage for $155,000 at 4.75% APR. In addition to the monthly payment, the lender requires him to pay into an escrow account for the homeowners insurance and property tax. His homeowners insurance is $1100 per year and the property tax is $1500 per year. Determine the monthly payment to the lender that includes the insurance and property tax. Round your answer to the nearest cent.
Tomas purchased a new heating and air-conditioning system for his home and financed $9,100 at an annual interest rate of 2.2% compounded monthly for 3 years. How much interest (in dollars) will Tomasz pay over the term of the loan? (Round your answer to the nearest cent.)

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