The Grewals agreed to monthly payments on a mortgage of $366,000.00 amortizedover 25 years. Interest for the first five years was 4.7% compounded semi-annually.a. Determine the Grewals' monthly payments.b. Determine the balance owing after the 5-year term.c. Before renewing for another term of 5 years at 5.4% compounded semiannually, theGrewals make an additional payment of $20,000. If they keep the same monthlypayments, by how much will the amortization period be shortened?

The mortgage payment is the method by which an individual repays their house loan. his is usually a…

Answered: The Grewals agreed to monthly payments…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

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Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
The Grewals agreed to monthly payments on a mortgage of $336,000.00 amortized over 20 years. Interest for the first five years was 4.5% compounded semi-annually.(using calculator) a. Determine the Grewals’ monthly payments. b. Determine the balance owing after the 5-year term. c. Before renewing for another term of 5 years at 4.3% compounded semiannually, the Grewals make an additional payment of $12,000. If they keep the same monthly payments, by how much will the amortization period be shortened?
The Sahota's agreed to monthly payments on a mortgage of $633,000.00 amortized over 25 years. They negotiate an interest rate of 4.25% compounded semi-annually for the first 5 year term of the mortgage. a. Determine the Sahota's monthly payments. b. Determine the balance owing after the 5-year term. C. Upon renewing for another term of 5 years at 4.3% compounded semiannually, the Sahota's increase the payments by 10%. By how much will the amortization period be shortened?
The Bautistas sign a mortgage for $50,000 to be amortized over 20 years with a term of 5 years at 11% c.m. with equal monthly payments. On the date of the 19th payment, they make an additional payment of $25,000 subject to a penalty clause requiring a penalty of three times one month's interest on the prepaid principal. Find the balance at the end of the 5 year term.
9) The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a mortgage of $136 000.00 amortized over 15 years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage agreement, the Taylors increased the rounded monthly payment by 10%. a) Determine the mortgage balance at the end of the five-year term. b) If the interest rate remains unchanged over the remaining term, how many more of the increased payments will amortize the mortgage balance? c) How much did the Taylors save by exercising the increase-in-payment option?
The Taylors agreed to make monthly payments on a mortgage of $130,000 amortized over 15 years. Interest for the first 3 years was 7.5 percent compounded semi-annually. Determine the mortgage balance at the end of the 3-year term OA. $141,121.64 OB. $141.948.91 OC. $114,600.42 OD. $114,072.53 EXE
Gregory purchased a house for $350,000. He made a down payment of 30.00% of the value of the house and received a mortgage for the rest of the amount at 4.72% compounded semi-annually amortized over 25 years. The interest rate was fixed for a 4 year period. a. Calculate the monthly payment amount. b. calculate the principal balance at the end of 4 year term c. calculate the montly payment if the mortgage was renewed for anotther 4 years at 4.12% compunded semiannually
A mortgage of $169,900 was taken out when the 5-year mortgage interest rate was 3.2% compounded semi-annually. 50 months later, the 5-year mortgage interest rate has decreased to 2.5%. What would be the new blend-and-extend mortgage rate if this mortgage is refinanced for a new 5-year term? Select one: a. 6.80% b. 3.08% c. 6.18% d. 7.20% e. 2.61%
Zara amortizes a loan of $210,000 for a new home by obtaining a 40-year mortgage at the rate of 7.5% compounded monthly. Find (a) the monthly payment (b) the total interest charges
ABC purchased a piece of property for $3,000,000. The loan terms require monthly payments at the beginning of each month for 15 years at an annual percentage rate of 9 percent. What is the amount of each mortgage payment?
Caleb purchased a house for $300,000. He made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.82% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 6 year period. a. Calculate the monthly payment amount. Round to the nearest cent b. Calculate the principal balance at the end of the 6 year term. Round to the nearest cent c. Calculate the monthly payment amount if the mortgage was renewed for another 6 years at 3.72% compounded semi-annually? Round to the nearest cent Give typing answer with explanation and conclusion

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