The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal interest rate of 8 percent. Payments are made at the end of each month. How much will be paid to principal in month 37? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.
Q: You invested $7,000 at the end of each quarter for 8 years in an investment fund. If t balance in…
A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…
Q: The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf)…
A: Solution:- Capital Asset Pricing Model (CAPM) is the equity model, which computes required return of…
Q: 1.Determine the missing values represented by K, L, M, and N in Table 5. A K = 0.8929; L = R196 438;…
A: Present value discount factor With discount or interest rate (r) and period (n), the present value…
Q: Prisha received a loan of $8,100 at 5.25% compounded monthly. He settled the loan making periodic…
A: Loans are paid by the periodic payments these are paid by equal periodic payments that carry payment…
Q: Find the nominal value and the time to redemption of 10 (the same) zero-coupon bonds, if they can be…
A: Bond Prices, Interest rates and time to maturity: Bond prices are sensitive to changes in interest…
Q: Under this new and more debt-oriented arrangement, the after-tax cost of debt is 8.8%; the cost of…
A: The question is related to cost of capital. The Weighted Average Cost of Capital WACC is calculated…
Q: An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000…
A: The present value analysis is carried out for finding the actual value of a project. It considers…
Q: Question 2 a. Why municipal bonds are the priority of some investors? Why sometimes do investors…
A: Municipal bonds are the significant bonds, which is defined as the debt obligations that are issued…
Q: m currently pays a dividend of 4 EURO per share. That dividend is expected to grow a a 5% rate…
A: Value of stock can be found based on the constant dividend growth model based on required rate of…
Q: Problem 3. Larga Industries has outstanding $1,000 par value bond with an 8% coupon interest rate.…
A: Bonds are debt instruments issued by companies. Bonds pay periodic coupons and value of a bond is…
Q: 13 ________ is related to the impact of adverse information about bank* A. Operational risk…
A: Risks of banks: Credit risk, market risk, and operational risk are the three main risks that banks…
Q: How much must Queenie deposit in the bank that pays 10% compounded monthly, so she will have…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: 1. The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the…
A: Put options are those future contracts in which agreement is made for selling of stock or security…
Q: Use the information below to answer the following questions. Polish Zloty Euro Mexican Peso Swiss…
A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three as per…
Q: Jam invested P500,000 in BPI Philippine Equity Index Fund on Aug 6, 2019 at a NAVPU of P104.75. On…
A:
Q: Carnes Cosmetics Co.'s stock price is $37, and it recently paid a $1.25 dividend. This dividend is…
A: Price of stock is the present value of future dividends and value received in the future discounted…
Q: With the growing popularity of casual surf print clothing, two recent MBA graduates decided to…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: b-1. What was the arithmetic average risk premium over this period? (A negative answer should be…
A: Standard Deviation: It is a statistical measure used to measure the dispersion of a set of data…
Q: Mark borrowed an amount of 10,865 from Brian and after 3 years, he borrowed again an amount of…
A: Equation of value : A sum of money has different values at different times. formula : value of debt…
Q: 14 Risk related to counterparty failure to meet their obligation based on the initially agreed terms…
A: Counterparty risk is the possibility or likelihood that one of the parties to a transaction could…
Q: Calculate the Payback Period of Project A (expressed in years, months and days). 2. Calculate the…
A: The payback period is used for project evaluation as it calculates the time required by the cash…
Q: Verizon spent $350 to acquire Victoria and expected a $500 annual contribution margin from her so…
A: Given: Annual contribution = $500 Churn rate = 10% Discount rate = 20% Acquisition cost = $350
Q: A project has an initial cash outflow followed by three annual positive cash inflows and has a…
A: NPV is a Capital budgeting techniques which help in decision making on the basis of future cash…
Q: You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.…
A: Given, Amount saved every year is $800 Rate is 9% Number of years is 25.
Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…
A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…
Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…
A: A mortgage is a secured loan for the purchase or maintenance of a property. The collateral for a…
Q: Employees at JPGR Inc have been busy evaluating a potential new $9 million investment for their firm…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: Assume you purchased 200 shares of GE common stock on margin at $100/share using 40% margin. How…
A: Solution:- In equity market, margin means the amount of money borrowed from the broker in order to…
Q: If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money…
A: The importance of future value: Future value is a crucial estimate since it informs investors and…
Q: Mark wants to invest his 1,000,000 pesos in an investment so that his money would grow overtime. He…
A: Here,
Q: You see a bond with the following characteristics: bond matures in 10 years coupon rate = 7% APR…
A: Time period of bond maturity i 10 years Coupon rate is 7% APR compounded semi-annually Coupon…
Q: What are the roles of venture capitalists and business angel in entreprenurial finance?
A: A venture capitalist (VC) is an investor who lends funding to new firms in return for stock.New…
Q: Your RRSP savings of $35,000 are converted to a RRIF at 3.25% compounded monthly that pays $5,100 at…
A: The amount in retirement fund will be depleted after some period of time due to payment and interest…
Q: A trader buys a European call for $1. The strike price is $30. Draw a diagram that shows the…
A: Strike Price = $30 European call price = $1
Q: Mrs. Lang Chua purchased a Bike at $845,000. She paid a down payment of $50,000 and promised to pay…
A: Present Value: The present value is the present sum of a series of fixed payments. The series of…
Q: The value of Maria's investments increased by 20% in the first year and by a further 10% in the…
A: Given: Maria's Interest rates given = 20% or 10% Amount invested = $10,000 Laura's interest rate…
Q: Suppose you are given the following information about 2 stocks, what is the return standard…
A: The degree of data dispersion from the mean is indicated by the standard deviation. Standard…
Q: Think about whether a risk-free asset should earn a risk-premium beyond the risk-free rate.…
A: The risk free asset will reflect an asset which has eliminated all the risk and which does not have…
Q: You shorted a call option on Intuit stock with a strike price of $34. When you sold (wrote) the…
A: Strike Price of $34 Premium received is $6 Time to expiry is 3 months To Find: Payoff profits
Q: how do i get the p.v.f @11%
A: The present value factor: The present value factor (p.v.f) is the present value of $1 at a given…
Q: Assume that you borrow 50,000 JPY under the system of 5% yearly compound interest. (1) If you repay…
A: Equal Loan installment is that under which we will pay the equal installment every year which…
Q: The internal rate of return is: discount rate that makes the profitability index (PI) greater than…
A: IRR and PI are important tools of capital budgeting along with NPV. IRR refers to the internal rate…
Q: Junior has bought a four-wheel-drive Suzuki Vitara SUV for his confectionery business. The price of…
A: Price of Veichle is $6,500,000 Down payment of $2,500,000 Interest rate is 12% Time period is 5…
Q: Following the Systematic Risk Principle, which of the following stocks has the smallest risk…
A: Risk of an investment refers to the variability of returns from the investment. In other words, risk…
Q: 15 Mudarabah and Musharakah fall under profit and loss sharing transactions and have other risks…
A: Mudarabah and Musharakah fall under profit and loss sharing transactions and have other risks…
Q: You own a call option on Intuit stock with a strike price of $39. When you purchased the option, it…
A: Data given: Strike price = $39 Cost of option( premium paid) = $7…
Q: What rate of interest (in %) compounded quarterly will yield an effective interest rate of 8.6%?…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: Ami has decided to be cryogenically frozen at the time of her death so that she can be resurrected…
A: Accumulated value: The amount initially invested plus any profit on an investment made at a…
Q: uestion 11 Find the monthly house payment necessary to amortize the following loan. In order to…
A: As per the given information: Amount borrowed - $70,000 Rate of interest - 12% Time - 15 years To…
Q: An analyst for JPGR Bank & Trust is considering the value of ZBX stock. ZBX isn't currently paying…
A: First Quarterly Dividend of $1.40 per share First Dividend paid in 1.25 years Required rate is 16%…
The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal interest rate of 8 percent. Payments are made at the end of each month. How much will be paid to principal in month 37? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.
Step by step
Solved in 5 steps
- The Brown family recently bought a house. The house has a 30 year, $156,000 mortgage with a nominal interest rate of 8 percent. Payments are made at the end of each month. What is the balance on the loan offer the first three years of payments have been made? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal interest rate of 8 percent. Payments are made at the end of each month. What is the total dollar amount of interest the family will pay during the first four years their mortgage? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.Please show all steps and formulas in an excel spreadsheet to answer a. through g. using the information below! You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000. a. What is your loan amount? b. What is your monthly payment? c. What will be the loan balance at the end of nine years? d. What is the effective borrowing cost if the loan will be prepaid at the end of nine years? e. In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month? f. What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)? g. What is your annual percentage rate (APR)?
- You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?Answer the following questions and show all working using a financial calculator. Do NOT use excel: 1. You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What is the monthly payments you must make on this loan? 2. Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume herinvestment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways?a. Annually b. Quarterly c. MonthlyYou are considering buying a new home and are planning to take out a 30-year, $300,000 mortgage. You are told that the interest rate on your loan will be 3%. You want to figure out how much you will have to pay on the mortgage each month. To analyze your potential loan, you have decided to use Microsoft Excel to calculate the monthly payments. To earn full credit your spreadsheet must contain the following elements: Calculate the required monthly payment using a built-in Excel function. Reference the interest rate via a cell name rather than a cell location Build a 360-month amortization table including the outstanding loan balance at the end of each month. Suppose instead of paying the required monthly payment, you decide to pay an extra $250 per month. How much sooner will you be able to pay off your loan?
- You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $6,200. You plan to put down $1,400 and borrow $4,800. You will need to make annual payments of $1,100 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) O A. Year 1 2 3 4 Cash Flow $4,800 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100 O B. Year 1 2 3 4 Cash Flow - $1,400 $1,100 $1,100 $1,100 $1,100 $1,100 O C. Year 1 2 3 4 Cash Flow - $4,800 $1,100 $1,100 $1,100 $1,100 $1,100 O D. Year 1 2 3 4 Cash Flow $6,200 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100In the Excel Payment Function file that follows, you are looking to see what your basic mortgage payment will be if you buy a home for $250,000. It will be a 30-year mortgage. The interest your bank will charge will be 7.5%. In cell C5, use the PMT function to determine what your monthly payment will be. Submit the spreadsheet in Canvas.In the Excel Payment Function file that follows, you are looking to see what your basic mortgage payment will be if you buy a home for $250,000. It will be a 30-year mortgage. The interest your bank will charge will be 7.5%. In cell C5, create a function that determines what your monthly payment will be.
- Diane is deciding between two personal loans. For each loan, the loan amount is $7500. Use the ALEKS loan calculator for the following. Also use the regular ALEKS calculator, as necessary. Write your answers to the nearest cent. ALEKS Loan Calculator Loan amount: $ Loan term: Interest rate: Calculate years % Monthly payment: (a) For Loan A, the interest rate is 6.15% per year and the loan term is 7 years. Find the total amount to repay Loan A. S (b) For Loan B, the interest rate is 6.15% per year and the loan term is 5 years. Find the total amount to repay Loan B. (c) For which loan would she pay less, and by how much? Loan A The total amount paid is $ less. Loan B The total amount paid is $less. X ĽPlease build an excel spreadsheet and show the formulas to answer a. through g. using the information below You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000. a. What is your loan amount? b. What is your monthly payment? c. What will be the loan balance at the end of nine years? d. What is the effective borrowing cost if the loan will be prepaid at the end of nine years? e. In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month? f. What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)? g. What is your annual percentage rate (APR)?The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal interest rate of 10 percent. Payments are made at the end of each month. What is the total amount that will be repaid to the bank over the life of the loan?