You are planning to borrow $500,000 on a 20-year fully amortized mortgage. The interest rate is 8% compounded semi-annually. You choose the monthly payment. a. What is the effective monthly rate for calculating the monthly payment?  b. What is your monthly payment? c. How much will you owe the bank in the end of the 5th year. d. What fraction of the payment made at the end of the 12th year will represent repayment of principal?

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A: Formulas:

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A: Solution: An amount invested somewhere, earns interest on it.  The amount initially deposited is…

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A: GIVEN, N=30 P=$100,000 R=9% PAYMENT=12

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A: Annual payments (P) on a loan (PV) of amount $15,644 with an interest rate ( r ) of 6.6% and with 5…

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A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

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A: Using excel PV function

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A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

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A: Step 1:Calculation of monthly payment @ initial interest rateThis is what the formula looks like for…

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A:

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A: Present value is the value of loan or future periodic payments at the present date.

Q: You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your…

A:

Q: 1. Consider a home mortgage of ​$150,000 at a fixed APR of 4.5​% for 25 years.   a. Calculate the…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

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A: Mortgage = $200,00Period = 20 yearsInterest rate = 5%

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A: To solve this problem, we can use the formula the present value of a growing annuity. The formula…

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A: Time value of money: Time value of money refers to the concept that the value of money available at…

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A: Time period = 20 years  Value of mortgage = $174,344 Annual interest rate = 5% Refinancing time…

Q: Consider a home mortgage of $200,000 at a fixed APR of 3% for 25 years. a. Calculate the monthly…

A: The series of payments discussed above is an annuity wherein an equal payment is made every month.

Q: You plan to borrow $47,800 at an 8.5% annual interest rate. The terms require you to amortize the…

A: Loan amount (PV) = $ 47800 Interest rate (r) = 8.5% Number of annual payments (n) = 7

Q: If you borrow $500,000 to buy a house today, what is the amount of your monthly mortgage payment…

A: Journal entry: It is the duty of the accountant to record business economic and non-economic…

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A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…