Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $152,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years. Required: a. What should SMPC pay if it wants an 11 percent return? b. What is the balance of the original loan after five additional years (10 years from origination)? Complete this question by entering your answers in the tabs below. Required A Required B What should SMPC pay if it wants an 11 percent return? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places..
Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance of your mortgage was $152,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years. Required: a. What should SMPC pay if it wants an 11 percent return? b. What is the balance of the original loan after five additional years (10 years from origination)? Complete this question by entering your answers in the tabs below. Required A Required B What should SMPC pay if it wants an 11 percent return? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places..
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
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Transcribed Image Text:Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and loan. The original balance
of your mortgage was $152,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be
fully amortized over 30 years.
Required:
a. What should SMPC pay if it wants an 11 percent return?
b. What is the balance of the original loan after five additional years (10 years from origination)?
Complete this question by entering your answers in the tabs below.
Required A Required B
What should SMPC pay if it wants an 11 percent return?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Payment
< Required A
Required B >
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