years ago, you acquired a 25-year loan of $190,200, charging 6.3% annual interest, compounded monthly, and requiring monthly payments. At this time, interest rates on 15-year loans have dropped to 2.5% APR, compounded monthly, and you wish to refinance Five what you still owe with a new loan at this new rate. a. How much will you be refinancing? Round your answer to the nearest dollar. Amount Refinancing: $ b. How much will your new monthly payment be after refinancing? Round your answer to the nearest cent. New Monthly Payment: $||

years ago, you acquired a 25-year loan of $190,200, charging 6.3% annual interest, compounded monthly, and requiring monthly payments. At this time, interest rates on 15-year loans have dropped to 2.5% APR, compounded monthly, and you wish to refinance Five what you still owe with a new loan at this new rate. a. How much will you be refinancing? Round your answer to the nearest dollar. Amount Refinancing: $ b. How much will your new monthly payment be after refinancing? Round your answer to the nearest cent. New Monthly Payment: $||

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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Similar questions

You are offered an add-on loan for $4,500 at 18% for 5 years. What is the monthly payment? What is the amount of interest? What is the true interest rate cost of this loan? If you could pay the same loan above at a compound rate: What would the monthly payment be? What would the amount of interest be? Prepare a monthly payment schedule for each loan above using Excel, and submit it. Suppose that you are only allowed to make a balloon payment to the principal of the compound interest loan. You have $1,000 to put down at the beginning of year three. How many payments will you save?
You borrowed $90,000. You will pay back the loan over 10 years with monthly payments. The interest rate is 15% APR. In the amortization schedule for this loan, what is the amount of interest in the third payment?
You have just taken out a $24,000car loan with a 4%APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest?(Note: Be careful not to round any intermediate steps less than six decimal places.) When you make your first payment,$.... will go toward the principal of the loan and $......will go toward the interest. (Round to the nearest cent.)
Ten years ago you took out $200,000, 30-year mortgage with an annual interest rate of 9 percent and monthly payments of $1,609.25. But since you took out that loan, interest rates have dropped. i. Determine the outstanding balance on your current loan for the remaining 240 payments. ii. If you refinance your loan at an annual rate of 7 percent, calculate the new monthly payment for another 20 years.
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.)
Suppose you want to buy a $148,000 home. You found a bank that offers a 30-year loan at 3.1% APR.What will be your monthly payment? (Round to the nearest cent.)$How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.)Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.)How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.)How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
A bank makes a loan with the following characteristics: monthly payments for 10 years, with an APR of 6%. The amount loaned is $200,000. What is the duration of the loan? What is the expected change in loan value if the interest rate decreases by 1 percentage point immediately after approving the loan. Choose the closest answer below. 5.32 years; -$10,037 3.21 years; $6,056 4.55 years; -$8,577 6.74 years; $12,716
Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $987 per month, and the total finance charge is $9,432. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $). (Round your answer to the nearest cent.) $ 8938.537
you are analyzing a GPM. the terms are $60,000 loan amount, 9% note rate, 30 years, monthly payments, OFV, payments in year one based based upon 7%, and payment in year two based on 8%. how much will you owe on this loan at the end of the second year? Please assist, using HP 10bII+.
You've just taken out a student loan with a quoted interest rate of 4.1%. You will have to pay back $1,600 in 19 years, with no intermediate payments necessary. A. How much did you borrow if interest is compounded monthly? B. How much did you borrow if interest is compounded daily?
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.
You want to borrow $300000 to start a business. The loan initial balance is increased by 2% of the loans face value(for loan originations fees, mortgage insurance,credit check,title searches etc) Your annual payments are calculated using an initial balance of $306000, an interest rate of 9% and a 20 year term. The bank requires you to refinance the loan in 5 years by paying it off with a balloon payment. what interest rate are you paying?

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