Trinidad has a mortgage of $900,000 through the Scotiabank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 5.8% compounded monthly for a term of 5 years, amortized over 25 years. At the end of the 5-year term, Trinidad will renew the mortgage for another 5-year term at a new, lower interest rate of 4% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? P/Y = I/Y = P1 = % P/Y= 2) What is the balance when the mortgage is renewed? I/Y= C/Y = PV = $ % PMT = $ (enter the rounded value into the calculator) P2= 3) What will be the new end of month payments after the mortgage is renewed? C/Y = PV = $ N= PMT = $ FV = $ BAL = $ Enter a positive value. N= FV = $

Trinidad has a mortgage of $900,000 through the Scotiabank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 5.8% compounded monthly for a term of 5 years, amortized over 25 years. At the end of the 5-year term, Trinidad will renew the mortgage for another 5-year term at a new, lower interest rate of 4% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? P/Y = I/Y = P1 = % P/Y= 2) What is the balance when the mortgage is renewed? I/Y= C/Y = PV = $ % PMT = $ (enter the rounded value into the calculator) P2= 3) What will be the new end of month payments after the mortgage is renewed? C/Y = PV = $ N= PMT = $ FV = $ BAL = $ Enter a positive value. N= FV = $

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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Erin has a mortgage of $640,000 through the Tangerine Bank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 5.3% compounded monthly for a term of 5 years, amortized over 25 years. At the end of the 5-year term, Erin will renew the mortgage for another 5-year term at a new, lower interest rate of 4.4% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? P/Y = 12 I/Y = 0.4 P1 = 640,000 X x% P/Y = 12 2) What is the balance when the mortgage is renewed? I/Y = 0.03 C/Y = 12 PV = $ 640,000 x% PMT= $3,854.09 (enter the rounded value into the calculator) P2= 70,408.34 X 3) What will be the new end of month payments after the mortgage is renewed? C/Y = 12 PV = $5,69,591.66 X N = 300 PMT $3,572.84 FV = $0 BAL= $5,69,591.66 x Enter a positive value. N = 240 FV = $0
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?
Trashia has a mortgage of $474,000 through her bank for property purchased. The loan is repaid by end of month payments of $2,839.48 with an interest rate of 4.8% compounded monthly over 23 years. What is the interest paid in the 7th year of the mortgage? Enter a POSITIVE VALUE for the answer, rounded to two decimal places. P1 = P2 = Interest paid in 7th year = $ (enter a positive value)
Kylie has a mortgage of $563,000 through her bank for property purchased. The loan is repaid by end of month payments of $4,493.68 with an interest rate of 6.27% compounded monthly over 17 years. What is the interest paid in the 6th year of the mortgage? Interest paid in 6th year = $ (Enter in a positive amount for your answer.) Submit Question
Marcel Thiessen purchased a home for $205, 700 and obtained a 15-year, fixed - rate mortgage at 10% 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.)
Felix is purchasing a brownstone townhouse for $2,300,000. To obtain the mortgage, Felix is required to make a 16% down payment. Felix obtains a 25-year mortgage with an interest rate of 6.5%. a) Determine the amount of the required down payment. b) Determine the amount of the mortgage. c) Determine the monthly payment for principal and interest.
On September 1, the home mortgage balance was $262,000 for the home owned by Kim Thompson. The interest rate for the loan is 8 percent. Assuming that Kim makes the September monthly mortgage payment of $2620 , calculate the following: (a) The amount of interest included in the September payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Kim makes this monthly mortgage payment.
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.
Felix is purchasing a brownstone townhouse for $2,900,000. To obtain the mortgage, Felix is required to make a 19% down payment. Felix obtains a 30-year mortgage with an interest rate of 5.5%. Click the icon to view the table of monthly payments. a) Determine the amount of the required down payment. b) Determine the amount of the mortgage. c) Determine the monthly payment for principal and interest. a) Determine the amount of the required down payment. S b) Determine the amount of the mortgage. c) Determine the monthly payment for principal and interest. (Round to the nearest cent.) (...) 4
Anna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 10% down pa Anna obtains a 30-year mortgage with an interest rate of 4%. Click the icon to view the table of monthly payments. a) Determine the amount of the required down payment b) Determine the amount of the mortgage. c) Determine the monthly payment for principal and interest. a) Determine the amount of the required down payment. CO
A family has taken out a mortgage of £450,000 to purchase a house on 1.1.2022. The mortgage is repaid in monthly instalments at the beginning of each month over 20 years.(a) Determine the monthly payment amount assuming an effective interest rate of 1.6% per annum.(b) After having made 5 years of payments the family takes out a new mortgage with an effective interest rate of 6% per annum for the remaining 15 years. Payments are made monthly in arrears. Determine the new monthly payment amount.(c) If the family would have originally agreed to make monthly instalments of £2,000 paid at the beginning of each month starting on 1.1.2022, when would they have paid off the loan? Assume an effective interest rate of 1.6% per annum throughout.
Daniel and Jan agreed to pay $556,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $70,000 down payment. They have a 25-year mortgage at a fixed rate of 638638 %. (Use Table 15.1.) a. How much is their monthly payment? Note: Round your answer to the nearest cent. Monthly payment: b. After the first payment, what would be the balance of the principal? Note: Round your answers to the nearest cent. Payment number Portion to interest portion to principal Balance of loan outstanding 1 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625…

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