The bank offers you a 20 yearmortgage for $200,000 at aninterest rate of 8% . The term ofthe mortgage is 5 years. a) Whatare your monthly payments? b)How much of the 30th paymentis applied to interest? How muchto principal? c) Under themonthly payment schedule,what do you still owe after 5years? d) If you make paymentsevery 2 weeks instead, what areyour payments? e) Under thebiweekly payment schedule,how much do you owe after 5years?

Mortgage loan=$200000Interest rate=r=8%Period=20 yearsFind out monthly payment.As per company…

Answered: The bank offers you a 20 year mortgage…

The bank offers you a 20 year mortgage for $200,000 at an interest rate of 8%. The term of the mortgage is 5 years. a) What are your monthly payments? b)

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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You purchase a home and have a $200,000 mortgage for 20 years at 5%. Utilize an amortization schedule. What are the periodic annual payment required for the mortgage? What are the interest payment for the first year? What is the first year principal repayment What is the balance owed at the end of the first year? What are the interest paid on the principal repayment for the second year ? What is the balance owed at the end of the second year ? Why did the interest paid on the principal repayment change in the second year?
You plan to borrow $47,800 at an 8.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2?
If you borrow $500,000 to buy a house today, what is the amount of your monthly mortgage payment over next 30 years if the bank charges a 3.6% interest rate? Provide cash, interest expense, principal adjustment and pricipal balance for the first 6 months Journalize the third payment
Class, Assume you took a 30-year mortgage loan in the amount of $300,000. If the mortgage rate is 3.75%, what is the monthly payment?
You buy a house for $1,200,000 using a 30-year mortgage. The annual interest rate is 3%. Payments are made at the beginning of the time period. What is the total principal paid over the 30 year life of the mortgage?
Calculate the original loan size of a fixed-payment mortgage if the monthly payment is $1,146.78, the annual interest rate is 8.0%, and the original loan term is 15 years.
You can afford a $800 per month mortgage payment. You've found a 30 year loan at 8%6 interest a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How much of that money is interest?
You just received a 20-year, $500,000 mortgage with a 12% annual interest rate (APR). What portion of the first payment (approximately) goes towards paying the principal? Hint: find the total monthly payment first, and the first month interest payment next.
Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual payments of $15,000 for 8 years.
You plan to purchase an $80,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 8.00 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage.b. Calculate the amount of interest and, separately, principal paid in the 127th payment.c. Calculate the amount of interest and, separately, principal paid in the 159th payment.d. Calculate the amount of interest paid over the life of this mortgage.
You plan to purchase a $160,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 6.5 percent. You will make a down payment of 15 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 25th payment. c. Calculate the amount of interest and, separately, principal paid in the 80th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Monthly payment b. Amount of interest Amount of principal Amount of interest Amount of principal d. Amount of interest paid C. Amount
2. Sue borrows $600,000 at 3.85%. The mortgage is for 30 years. A. What is the monthly payment? B. How much interest will be paid over the life of the loan? C. Recalculate the total interest rate if the rate changes from 3.85% to 6.85 %. What is the total interest paid over the life of the 6.85% loan?

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