Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment and finance the rest at 2.9% payable monthly for 30 years. If she stays with this payment schedule for the entire 30 years, how much will she actually pay for the house including down payment and interest?

Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment and finance the rest at 2.9% payable monthly for 30 years. If she stays with this payment schedule for the entire 30 years, how much will she actually pay for the house including down payment and interest?

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

Mystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.
When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.2% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. How long will it take to pay off this new loan if they pay $1200 each month?
Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out a 30 year loan at 4.9% interest for the balance. a) How much is the loan going to be? b) What will the monthly payment be for Evan and Emmanuel? c) How much of the first payment is interest? d) What is the total of the payments? e) How much interest was paid?
Cheryl Wilcox is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,200 per month for twenty years. (Round your answers to the nearest cent.) (a) How large a monthly payment must Cheryl Wilcox make if she saves for her payout annuity with an ordinary annuity, which she sets up thirty years before her retirement? (The two annuities pay the same interest rate of 8% compounded monthly.) (b) Find the total amount that Cheryl will pay into her ordinary annuity. Compare it with the total amount that she will receive from her payout annuity. Cheryl receives $ _____ more than she paid.
Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken. Assuming that the couple has enough savings for the down payment, what is the cost of the house that they want to purchase? a. 494,068.50 b. 2,470,342.49 c. 750,000 Od. 617,585.62
Isabelle wants to save for retirement. She earns $5400 in income each month, and wishes to deposit 10% of her income into a savings acount each month. If the savings account has a nominal interest rate of 7%, compounded monthly, how much will be in the account if she retires in 35 years?
Bridgette can afford to make monthly payments of $800 towards a mortgage, and wants to fully own her home within 30 years. Given an interest rate of 10.5% on her mortgage, what's the highest value of a home she can afford?
Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the remainder for 15 years at the APR of 8.2%, compounded monthly. a) How large are the monthly payments? $ b) What will be their loan balance right after they have made their 156th payment? $ c) How much interest will they pay during the 13th year of the loan? $ d) If they were to increase their montly payments by $120, how long would it take to pay off the loan? Give your answer in whole months.
Elizabeth has $17000 to invest. She requires $34000 for a down payment for a house. If she is able to invest at 8%, how many years will it be before she will accumulate the desired balance? Select answer from the options below 7 years. 9 years. 8 years. 6 years.
Ms. Towne is buying a home for $250,000 and is putting down 20 percent cash on the purchase. She is financing the rest with a 30-year, fixed-rate mortgage with a rate of 5 percent but is considering an option that would allow her to make biweekly payments. How long would it take to pay off the loan if she chooses the biweekly payments option?
Margaret Foster wants to buy a new camper in 6 years. She estimates the camper will cost $6,400. Assume Margaret invests $3,800 now at 8% interest compounded semiannually. Will Margaret have enough to buy her camper at the end of 6 years? Calculate the amount she is short or over what is needed.
Tammie wants to buy a scooter that costs $3,500. Her mom will loan her the money at 5% annual interest as long as she makes monthly payments over the next 3 years. How much will Tammie's monthly payment be?

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