The price of a home is $260,000. The bank requires a 20% down payment and one point at the time ofclosing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. Down payment?Monthly payment? end of 30years total amount paid, total interest over 30 years?

Explanation:Step 1: Calculate the down payment.The home price is $260,000, and the bank requires a…

Answered: The price of a home is $260,000. The…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
The price of a home is $210,000. The bank requires a 15% down payment and one point at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 6.5%. ( Round to the nearst dollar) a. Find the required down payment. b. Find the amount of the mortgage. c. Find the monthly payment for the loan. d. Find the total cost of interest over 30 years.
Answer this question below... The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is financed with a 30-year fixed rate mortgage at 7.5%. Find the required down payment. Find the amount of the mortgage. Find the monthly payment (excluding escrowed taxes and insurance). Find the total interest paid over 30 years. Use this formula to find the monthly payments:
The price of a home is $220,000. The bank requires a 20% down payment and one point at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 6.5%. a. required down payment. b. amount of the mortgage. c. monthly payment for the loan. d. total cost of interest over 30 years.
The price of a condominium is $127,000. The bank requires a 5% down payment and one point at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at 6.5%. a. Find the required down payment. b. Find the amount of the mortgage. c. How much most be paid for the one point at closing? d. Find the monthly payment (excluding escrowed taxes and insurance).
You want to purchase a house valued at $200,000. After a downpayment, you can finance the house with a 20 year mortgage at 4.2% APR, compounded monthly. What percentage of the house will you need to finance in order to have monthly payments of $1,000? Round to two decimal places. What is the downpayment?

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The price of a home is $260,000. The bank requires a 20% down payment and one point at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. Down payment? Monthly payment? end of 30years total amount paid, total interest over 30 years?