The Torres family wants to purchase a home that is valued at$275 000. They have a $35 000 down payment. The bank hasoffered them a 3.75% annual interest rate amortized over 25years. Enter the missing values in the table below.Month012Monthly Interest Principal Unpaid Balance Owner's EquityPaymentPayment

Purchase price of home = $275000 Down Payment =$35000 Rate of Interest = 3.75% Term of Amortization…

Answered: The Torres family wants to purchase a…

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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The Fritzes are buying a house that sells for $107,000.The bank is requiring a minimum down payment of 20%.To obtain a 40-year mortgage at 9.5% interest, they must pay 4 points at the time of closing. a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 20% down payment. c) Find the cost of 4 points on the mortgage. a) The required down payment is $ enter your response here.
Ivan is looking to purchase a home that costs $ 160,000. The interest rate is currently at 3.7%. Use the monthly payment formula below to find Ivan's monthly mortgage payment for the next 30 years. M = P)(1+)¹²t (1+)12t_1 Emilio's savings account had a balance of $621.96 at the end of July. During August, he made three savings account deposits of $83.11, $52.89, and $307.84 and one withdrawal of $129.00. At the end of August his account earned $11.50 in interest. Will Emilio meet his savings account goal of $1,000 by September 1st?
Fifteen years ago, the Budai family bought a home and financed $150,000 with a 30-year mortgage at 8.2%. (a) Find their monthly payment, the total amount of their payments, and the total amount of interest they will pay over the life of this loan. (b) The Budais made payments for 15 years. Estimate the unpaid balance using the formulay =R( 1-(1+i)n-x-1/i)
Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment. Assuming a rate of 8% on a 25-year mortgage, Craig's monthly payment is (use the table in the handbook): Multiple Choice None of these $1,431.30 $1,505.40 $1,505.04 ) $1,413.30 acer
Jennifer Kaufman bought a used Toyota Prius for $16,500. She made a $4,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)
A woman decides to purchase a $23000 car, and makes down payment of $3500. She arranges to borrow the remainder from a bank that will charge her 4.5% interest. She will make monthly payments for 4 years. a. Find her monthly payment amount b. determine the total amount she would pay for the car and the total amount of interest paid
Mike Jones bought a new split-level home for $150,000 with 20% down. He decided to use Quicken Loans for his mortgage. Quicken was offering 3 3/4% for 25-year mortgages. Provide Mike with an amortization schedule for three periods. (Use Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Payment number Portion to interest Portion to principal Balance of loan outstanding 1 241.96 $119,758.04 2 3 243.47 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651…
A young couple buying their first home borrow $90,000 for 30 years at 7.4%, compounded monthly, and make payments of $623.14. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. (Round your answer to the nearest cent.) (b) How many regular payments of $623.14 will amortize the unpaid balance from part (a)? Give the answer to one decimal point. (c) How much will the remaining debt be after the number of full payment periods in part (b) is made? (Round your answer to the nearest cent.) (d) How much will the couple pay over the life of the loan by paying the extra $2,000? (Round your answer to the nearest cent.) (e) How much will the couple save over the life of the loan by paying the extra $2,000? (Use your answer from part (b). Round your answer to the nearest cent.)
Question Help The Adeeva's gross monthly income is $6300. They have 18 remaining payments of $230 on a new car. They are applying for a 20-year, $172,000 mortgage at 6.5%. The taxes and insurance on the house are $360 per month. The bank will only approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Click here for table of Monthly Payments a) Determine 28% of the Adeeva's adjusted monthly income. (Round to the nearest cent.) TO b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance. et e cart 1 $6 (Round to the nearest cent.) c) Do they qualify for this mortgage? No O Yes

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