Use the formulas presented in the lectures to CALCULATE the answers to the following items. Round the annuity factor to 4 decimal places and the mortgage payment to the penny. Suppose the current price of a home is $320,000. The amount of the loan is $ if the down payment is 10%. The annuity factor for a 30-year mortgage is if the mortgage rate is 7.2%. The mortgage payment is $ when a 10% down payment is made to purchase a $320,000 given

Use the formulas presented in the lectures to CALCULATE the answers to the following items. Round the annuity factor to 4 decimal places and the mortgage payment to the penny. Suppose the current price of a home is $320,000. The amount of the loan is $ if the down payment is 10%. The annuity factor for a 30-year mortgage is if the mortgage rate is 7.2%. The mortgage payment is $ when a 10% down payment is made to purchase a $320,000 given

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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Suppose Mary Grace needs to borrow $8,900 for the purchase of a car and is considering two loan options. Loan A is a four-year loan at 7.6% interest while loan B is a seven-year loan at 7.9% interest.Determine the monthly payment required to repay Loan A and the total interest paid over the life of Loan A. Round solutions to the nearest cent, if necessary.The monthly payment for Loan A is $ .The total interest paid for Loan A is $ .Determine the monthly payment required to repay Loan B and the total interest paid over the life of Loan B. Round solutions to the nearest cent, if necessary.The monthly payment for Loan B is $ .The total interest paid for Loan B is $ .Determine the lower-cost option of the two loans. Loan A is the lower-cost option. Loan B is the lower cost option. Determine the amount of savings Mary Grace will experience if she chooses the lower-cost loan option.Savings = $ Hint: Related FormulaThe loan payment formula for fixed installment loans is given by the…
Use PMT = to detemine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $200,000 20-year - nt 1+ fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $E (Do not round until the final answer, Then round to the nearest cent as ccess aUbra Success Resou More
You are looking at a one-year loan of $15,000. The interest rate is quoted as 10 percent plus 3 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 3 points to the lender up front and repay the loan later with 10 percent interest. What rate would you actually be paying here? Multiple Choice 6.70% 10.00% 13.40% 12.06% 14.74%
Consider a home mortgage of $225,000 at a fixed APR of 6% for 30 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The total amount paid over the term of the loan is $ (Round to the nearest cent as needed.) c. Of the total amount paid,% is paid toward the principal, and % is paid for interest. (Round to one decimal place as needed.)
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage loan for 75 percent of the $3,000,000 purchase price. The monthly payment on this loan will be $17,100. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The price of a condominium is $187,000. 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%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PMT = a. Find the required down payment. $9350 b. Find the amount of the mortgage. $177650 c. How much must be paid for the one point at closing? $1776 (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). More Enter your answer in each of the answer boxes. 11:12 PM O Type here to search 81°F Mostly cloudy 22 99+ 6/30/2021 DELL F3 F4 FS F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete కలnn Home Num $4 %24 & Backspace 8. R T K Enter (凸)
Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $230,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year foxed-rate mortgage at 6.5%. Complete parts (a) through (e) below. a. Find the required down payment. $ 46,000 b. Find the amount of the mortgage.
Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $700 and promise to pay back $777 at the end of 1 year. % b. You lend $700 and the borrower promises to pay you $777 at the end of 1 year. % c. You borrow $88,000 and promise to pay back $550,376 at the end of 15 years. % d. You borrow $20,000 and promise to make payments of $6,687.60 at the end of each year for 5 years. %
Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $17,900 with an annual interest rate of 09.00%. The loan will be repaid over 22 years with monthly payments. 1. What is the Loan Payment? 2. What portion of this payment is Interest? 3. What portion of this payment is Principal? 4. What is the Loan balance after first monthly payment?
1. Assuming the cost of mortgage is $400,000, and the owner of the house makes a down payment of $40,000, with 8% interest rate and 10 years repayment plan. a. calculate the total amount of loan, monthly rate, number of payment periods, monthly payment, total interest paid, and amount borrowed. b. With the aid of what PMT function in a one variable condition, calculate monthly payment, total amount payable, total interest payable for: 12 yrs, 16 yrs, 20 yrs ,25 yrs, 30 yrs, 35 yrs mortgage.
You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 34-year mortgage loan for 80 percent of the $3,240,000 purchase price. The monthly payment on this loan will be $15,700. What is the APR on this loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the EAR on this loan? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

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