You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 4% with closing costs of $1300 and no points. Choice 2: 20-year fixed rate at 3.5% with closing costs of $1300 and 3 points. What is the monthly payment for choice 17 (Do not round until the final answer. Then round to the nearest cent as needed.) What is the monthly payment for choice 27 (Do not round until the final answer. Then round to the nearest cent as needed.) What is the total closing cost for choice 17 What is the total closing cost for choice 27 m

You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 4% with closing costs of $1300 and no points. Choice 2: 20-year fixed rate at 3.5% with closing costs of $1300 and 3 points. What is the monthly payment for choice 17 (Do not round until the final answer. Then round to the nearest cent as needed.) What is the monthly payment for choice 27 (Do not round until the final answer. Then round to the nearest cent as needed.) What is the total closing cost for choice 17 What is the total closing cost for choice 27 m

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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Please answer C and D.
A borrower is faced with choosing between two loans. Loan A is available for $89,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. Required: a. If the loan is repaid after 20 years, which loan would be the better choice? b. If the loan is repaid after five years, which loan is the better choice? (Analyze the decision with both rates at two decimal places.)
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $130,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) ...
You purchase a home costing $480,000 with a 20% down payment. After shopping around for a mortgage, you select a lender who offers you two options for 30-year mortgages with monthly payments: Option I: A rate of 2.75% (APR) and an upfront fee (due immediately) of $3,840 Option II: A rate of 2.65% (APR) and an upfront fee (due immediately) of $9,600. a. Compute the monthly loan payment for each option. b. Compute the outstanding loan balance after 10 years for each option. c. If you prefer a lower true interest rate, which one should you choose? d. If you anticipate staying in the house for 10 years, which option should you choose?
Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a monthly payment for the next 30 years, with an annual interest rate of 3%. What will be the amount of your monthly mortgage (i.e., home loan) payment? answer choices $1,890.37 $1,400.01 $1,475.61 $1,228.14
A new homeowner is purchasing a living room set for $2,590 and must decide between two financing offers.Offer 1: $200 down payment, 24.90% interest rate, compounded monthly, for 3 years, with no payments due for 6 months and then fixed payments of $121.96 for the remainder of the loan termOffer 2: $450 down payment, 22.90% interest rate, compounded monthly, for 3 years, with no payments due for 12 months and then fixed payments of $140.48 for the remainder of the loan termPart A: What is the total cost of offer 1?Part B: What is the total cost of offer 2? Part C: Which financing offer should the new homeowner choose?
You are trying to purchase a condo and are looking at various options to finance the purchase.Your two best options are Option I a loan at 13.25 % (APR) interest compounded semi-annually. Or a 11.75 % (APR) interest loan compunded daily. Evaluate each loan structure and determine the Effecte Annual Rate (EAR) of each loan to determine what is the better deal.
The purchase price of an item is $15,000. You decide to buy it using an installment plan. You put 20% down. You agree to pay $275 per month for 5 years. a.) what is the amount of your down payment? b.) how much are you borrowing? c.) how much will you pay in interest? d.)how much will this item cost you in total?
a purchaser makes a 20% down payment on a new home and obtains a loan for the balance. The lender charges two discount points which equals 1000. what was the sale price of the house? I would like a break down on how to obtain the answer
← You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 6% with closing costs of $2900 and no points. Choice 2: 20-year fixed rate at 5.5% with closing costs of $2900 and 4 points. What is the monthly payment for choice 1? A (Do not round until the final answer. Then round to the nearest cent as needed.)
Your uncle offers you a choice of $106,000 in 10 years or $43,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 9 percent, what is the present value of the $106,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value a-2. Which offer should you choose? $106,000 after 10 years O $43,000 today
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $80,000 loan. Option 1: a 30-year loan at an APR of 8.15%. Option 2: a 15-year loan at an APR of 7.75%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $ enter your response here. The monthly payment for option 2 is $ enter your response here.

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