Alexandra received a 30 year loan of $280,000 to purchase a house. The interest rateon the loan was 4.60% compounded semi-annually.a. What is the size of the monthly loan payment?Round to the nearest centhpSUBMIT QUESTIONSAVE PROGRESS12°C b. What is the balance of the loan at the end of year 3?Round to the nearest centc. By how much will the amortization period shorten if Alexandra makes an extrapayment of $30,000 at the end of year 3?yearsmonthshpSUBMIT QUESTIONSAVE PROGRESS12°C

Loans are paid by the equal monthly payments and these monthly payments carry the payment for…

Answered: xandra received a 30 year loan of…

xandra received a 30 year loan of $280,000 to purchase a he the loan was 4.60% compounded semi-annually. . What is the size of the monthly loan payment? rest rent

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

See similar textbooks

Related questions

Q: A couple borrows $180,000 at 5.4%, compounded monthly, ofr 30 years. After making 80 payments of…

A: Given information: Amount borrowed $180,000 Interest rate 5.4% compounded monthly Number of years 30…

Q: a. How many payments are required to repay the loan? Number of payments b. Use the given information…

A: Amortization is the process of gradually repaying the loan. In an amortizing loan, a portion of each…

Q: ill grant an 80 percent loan on a home with an appraised value of $328,400 at 4.75 percent annual…

A: Loans are paid by the equal monthly payments and these payments carry the payment of principal and…

Q: Jada and Izaak borrowed $40,000 at 5.53% compounded quarterly as a second mortgage loan against…

A: A loan refers to a contract between a lender and a borrower where a sum is exchanged on the promise…

Q: Sol Pine borrows $8,200 for one year at 12 percent interest. What is the effective rate of interest…

A: The effective rate of interest refers to the interest on a loan to be accumulated the compound…

Q: A home is purchased for $229,000 with an amortized loan over 30 years at an interest rate of 4.6%.…

A: Purchase price = 2,29,000 Loan Tenure = 30 years Interest rate =…

Q: How much would she pay per month if she is to repay the loan in two years

A: We can determine the monthly payment by using the formula below:In the formula above r = monthly…

Q: Safewell Co obtains a discount loan at a 12 percent interest rate. Safewell borrows $100,000 for…

A: Effective interest rate if the amount of interest rate which is charged on the principal amount…

Q: e the following amortization chart. (solve for principal and monthly mortgage payment) Selling…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: 5. Jenna received a 15 year loan of $375,000 to purchase a 5.10% compounded semi-annually. a. What…

A: Loans are paid by the fixed monthly payments and these payments carry the payment for interest and…

Q: Krisi took out a $500 discounted loan calculated using a simple interest rate of 5% for a period of…

A: Loans are the methods through which individuals or corporations borrow funds and money from lenders,…

Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much…

A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years

Q: Doreen Short was looking over the repayment schedule for a loan of $37,858 at 7% interest for 5…

A: The remaining balance after making payments for 15 months as the remaining payments will be 45 is…

Q: A borrower had a loan of $7800 at 5.6% compounded semiannually, with 20 semiannual payments. Suppose…

A: We have; The loan amount is $7800 The interest rate is 5.6% compounded semiannually Total m=number…

Q: Donald received a loan of $22,000 at 3.25% compounded monthly. She had to make payments at the end…

A: Using excel PMT to calculate the size of the payment

Q: ou have just signed for a car loan with 48 monthly payments of $500 (principal and interest) at an…

A: First we need to use loan amortization formula below to calculate loan amount.wherePV = loan…

Q: Dustin obtained a business loan of $220,000 at 5.21% compounded semi-annually.a. What was the size…

A: Sure, let's tackle these questions step by step.a. To find the size of the semi-annual payments to…

Q: Tom Bond borrowed $6,200 at 6-% for three years compounded annually. What is the compound amount of…

A: Compound amount = Principal(1 + Rate/100)t Interest = Compound amount - Principal

Q: Find the monthly payment for a 289,500.00 home with 20% down payment. The terms of the mortgage are…

A: The cost of home = 289,500 The down payment = 20% Interest rate on mortgage = 8.5% The time period…

Q: 2. Prepare a loan amortization schedule for the first 3 months of the mortgage loan shown in the…

A: Total loan is $250,000. Number of years is 20. Thus, number of total monthly payment is 240. Annual…

Q: Use the following information to calculate the monthly mortgage payment amount to purchase a…

A: The mortgage refers to the contract between the lender and the borrower for the amount of the…

Q: Marcela took out a $600 discounted loan with a 4% annual interest rate over a period of 8 months.…

A: Effective annual interest rate is referred as the interest rate which is adjusted for compounding…

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: A hair stylist obtains a home loan for $411,000 at an annual interest rate of 5.25% compounded…

A: To find the monthly mortgage payment, we can use the formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n –…

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Someone buys a car for 12,000$ and puts 25% down. They then get a simple interest amortized loan for…

A: APR: Annual percentage rate includes fees and additional costs related to the loan processing. It is…

Q: Theodore D. Kat is applying to his credit union for a mortgage of $200,000. The bank has quoted 8%…

A: Calculating Effective Annual Rate using Excel Effective annual rate functionEAR = 8.30%

Q: Jalen has a loan that requires a single payment of $4,800 at the end of 3 years. The loan's interest…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: 2. Prepare a loan amortization schedule for the first 3 months of the mortgage loan shown in the…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: Using the Add-On Method, calculate the monthly payment for a $ 8,500 loan that is borrowed for 3…

A: Under Add-on method, total interest will be calculated considering the simple interest formula and…

Q: Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 34-year loan with a…

A: Information Provided: Interest rate = 0.25% per month Period of loan = 34 years Monthly payment =…

Question

Alexandra received a 30 year loan of $280,000 to purchase a house. The interest rate
on the loan was 4.60% compounded semi-annually.
a. What is the size of the monthly loan payment?
Round to the nearest cent
hp
SUBMIT QUESTION
SAVE PROGRESS
12°C

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 Alexandra makes an extra
payment of $30,000 at the end of year 3?
years
months
hp
SUBMIT QUESTION
SAVE PROGRESS
12°C

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Corey received a 30 year loan of $345,000 to purchase a house. The interest rate on the loan was 5.00% compounded semi-annually. Question 5 of 6 a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent SUBMIT QUESTION SAVE PROGRESS
2. Sue borrows $600,000 at 3.85%. The mortgage is for 30 years. A. What is the monthly payment? B. How much interest will be paid over the life of the loan? C. Recalculate the total interest rate if the rate changes from 3.85% to 6.85 %. What is the total interest paid over the life of the 6.85% loan?
Angelica took out a 20-year loanfor $170,000 at 5.4% interest,compounded monthly. What isher monthly payment?
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
Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 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.)
On a $529,000 home, on a 30-year fixed mortgage, with an interest rate of 5.29, find: a. The down payment amount (15 % )b. Amount borrowed from bank (price of home - down payment) c. The monthly payment d. Total paid back to bank (principal + interest)
Subject: Finance
Vincent received a loan of $28,000 at 4.25% compounded monthly. She had to make payments at the end of every month for a period of 5 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Complete the partial amortization schedule, rounding the answers to the nearest cent. Payment Number Payment K 0 1 2 0 0.00 0 0 Total :: :: $0.00 $0.00 $0.00 $0.00 $0.00 Interest Portion Principal Portion $0.00 $0.00 :: :: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Principal Balance $28,000.00 $0.00 $0.00 :: $0.00 $0.00 0.00
Angus can obtain a residential mortgage loan from a bank at 7.00% compounded monthly. What is the effective annual rate of this loan? (round to two decimals and show all inputs in rough work)
If a student loan was repaid by monthly payments of $800.00 in 5.0 years at 7.00% compounded semi-annually, how much interest was paid?
Tom Bond borrowed $6,600 at 6-% for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan? Compound amount = $ (Round to the nearest cent as needed.) Compound interest = $ (Round to the nearest cent as needed.)
Catherine obtained a loan of $40,000 at 4.5% compounded monthly. How long (rounded up to the next payment period) would it take to settle the loan with payments of $2,810 at the end of every month?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS