Xander takes out a loan for $260000 at an interest rate of 4.8%p.a. compounded monthly. The minimum monthly repayments over 25 years are currently $1489.8. a. Calculate the outstanding debt after 7 year(s) of minimum payments. Calculator input: n = i = PV = РMT — FV = PİY = C/Y = Outstanding debt = b. After 7 year(s), Xander transfers the remainder of her loan to a bank charging a home loan interest of 4.4%p.a. compounded monthly. (i) Calculate the new monthly repayment monthly payment = $ How much interest will Xander save? Calculate the balance (ii) remaining using your answer from b(i) and the final PMT. Total interest saved =

Xander takes out a loan for $260000 at an interest rate of 4.8%p.a. compounded monthly. The minimum monthly repayments over 25 years are currently $1489.8. a. Calculate the outstanding debt after 7 year(s) of minimum payments. Calculator input: n = i = PV = РMT — FV = PİY = C/Y = Outstanding debt = b. After 7 year(s), Xander transfers the remainder of her loan to a bank charging a home loan interest of 4.4%p.a. compounded monthly. (i) Calculate the new monthly repayment monthly payment = $ How much interest will Xander save? Calculate the balance (ii) remaining using your answer from b(i) and the final PMT. Total interest saved =

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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Mr. Herymann bought a house for Rp. 500 million on credit for 5 years. Bank BNI offers mortgages with an interest rate of 7% per year. If Mr. Hery is required to pay a down payment of 20%, then: a. How many installments will Mr. Hery pay from KPR BNI every month? b. With an annuity interest scheme, show the payment schedule (principal, interest, monthly total) in the table)! c. To get a total payment (principal plus interest) equal to #b above, how much flat interest should be charged if the loan period and value are the same? Make a table/schedule of payments with the flat interest! (hint: you can use excel solver to find the flat interest).
Find the monthly payment for each loan below. Remember to assume monthly compounding. 11. Sean and Sam purchase a house with a $20,000 down payment. The purchase price of the house was $475,000 and they financed the rest for 3.75% for 30 years. Their annual taxes will be $2856, and their annual insurance will be $1984. What will their monthly principal, interest, tax, and insurance (PITI) mortgage payment be?
Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was 3.70% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3? Round to the nearest cent c. By how much will the amortization period shorten if Cassandra makes an extra payment of $30,000 at the end of year 3? years and monthsm
You borrow $300,000 to buy a house; if the annual interest rate is 4% and the term of the loan is 20 years, what is the annual payment required to retire the mortgage loan? Complete the loan amortization schedule for the first payment: Payment Interest Portion Principal Portion Ending Balance #1
Jonathan wishes to buy a used chevy malibu for $12,500. He only has $1,000 for a down payment so th ebest deal he can get on a loan is 9% for 48 months a.) what will his payments be? b.)What is the total interest over the life of the loan?
Theodore D. Kat is applying to his credit union for a mortgage of $200,000. The bank has quoted 8% an interest rate. He would pay off the mortgage over 25- years (amortization period) and make a payment at the end of each month. A. Calculate EAR (1/100 of one percent, no %, e.g. 9.35) B. How much are Theodore's monthly payments?
i
A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5% APR compounded monthly with level monthly payments. There is also a 2% Origination Fee so at the very beginning, she receives 250,000*98% = 245,000. Assume she will pay the loan for 30 years following the original loan schedule. What would be the Effective Annual Rate (EAR)? Hints: 1. Monthly Payment is based on $250,000; 2. with Excel Rate function, calculate the Effective Monthly Rate (EMR), here PV is what the borrower actually receives (after deduction of 2%) 3. then EAR (1+EMR)^12-1 O 5.30% O 5% = O 4.70% O Not enough information
The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys a house for $350,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 5 years. The interest rate on the debt is 10%, compounded semiannually. (a) Find the size of each payment. $ (b) Find the total amount paid for the purchase. $ (c) Find the total interest paid over the life of the loan. $
The Taylors have purchased a $310,000 house. They made an initial down payment of $40,000 and secured a mortgage with interest charged at the rate of 10%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 yr, what monthly payment will the Taylor's be required to make? (Round your answers to the nearest cent.) monthly payment $ What is their equity (disregarding appreciation) after 5 yr? After 10 yr? After 20 yr? equity after 5 yr $ equity after 10 yr $ equity after 20 yr $
Nancy takes out a $500,000 loan for 25 years at 4% monthly. a) What is the monthly payment?b) What is the final payment? TVM FORMULA
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