Three years ago the biggs purchased a house for So made a down payment mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. e) After making three years of payments, they made a lump-sum payment to reduce the balance owing to $460,000. How much was the lump-sum payment? Express your answer in 2 decimal places and do not enter "$" sign.

Three years ago the biggs purchased a house for So made a down payment mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. e) After making three years of payments, they made a lump-sum payment to reduce the balance owing to $460,000. How much was the lump-sum payment? Express your answer in 2 decimal places and do not enter "$" sign.

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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Madison initially borrowed $8,200 from TD Canada Trust at 3.45% compounded semi- annually. After 2 years she repaid $2,706, then 6 years after the $8,200 was initially borrowed she repaid $3,608. If she pays off the debt 11 years after the $8,200 was initially borrowed, how much should her final payment be to clear the debt completely? Round all answers to two decimal places if necessary. P/Y = C/Y = N = I/Y = %3D PV = $ PMT = $ FV = $ Amount owed after 2 years = $ (enter a positive value) Amount owed after the first payment of $2,706 (enter a positive value): $ * P/Y = C/Y = I/Y =
Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. $95,037.72$103,940.74 $112,256.00$113,556.00
Chad purchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a mortgage for the rest of the amount at 6.25% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. a. Calculate the principal balance at the end of the 5-year term. b. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 6.00% compounded semi-annually?
Trashia has a mortgage of $474,000 through her bank for property purchased. The loan is repaid by end of month payments of $2,839.48 with an interest rate of 4.8% compounded monthly over 23 years. What is the interest paid in the 7th year of the mortgage? Enter a POSITIVE VALUE for the answer, rounded to two decimal places. P1 = P2 = Interest paid in 7th year = $ (enter a positive value)
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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
Juni buys a new car. Her auto loan is $12,000 with an annual interest rate of 3% compounded monthly for 5 years. Her monthly payment is $287 The following table shows the first payment in the amortization schedule. Payment number Loan Amount Payment Interest Principal Remaining Balance 1 12,000 287 ? ? ? Interest: $30 Interest: $8.61 Principal: $278.39 Principal: $257 Remaining Balance: $11,743 Remaining Balance: $ 11,721.61
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Nikul
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