You have just sold your house for $950,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 6.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) 1. The monthly discount rate is %. (Round to five decimal places.) 2. The monthly payment for the original loan is $ ____. (Round to the nearest cent.) 3. The remaining balance on the original mortgage loan is $ (Round to the nearest cent.) 4. The cash that remains after payoff of the mortgage is $ _. (Round to the nearest cent.)
You have just sold your house for $950,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 6.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) 1. The monthly discount rate is %. (Round to five decimal places.) 2. The monthly payment for the original loan is $ ____. (Round to the nearest cent.) 3. The remaining balance on the original mortgage loan is $ (Round to the nearest cent.) 4. The cash that remains after payoff of the mortgage is $ _. (Round to the nearest cent.)
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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Transcribed Image Text:You have just sold your house for $950,000 in cash. Your mortgage was originally a 30-year mortgage with
monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18.5 years old, and you
have just made a payment. If the interest rate on the mortgage is 6.25% (APR), how much cash will you have
from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) 1. The monthly discount
rate is %. (Round to five decimal places.) 2. The monthly payment for the original loan is $ ____. (Round to
the nearest cent.) 3. The remaining balance on the original mortgage loan is $ (Round to the nearest
cent.) 4. The cash that remains after payoff of the mortgage is $ _. (Round to the nearest cent.)
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