You take out a 30-year fixed rate mortgage for $160000 at 4.4% compounded monthly. a) Make a spreadsheet and calculate your monthly payment by experimentation. What is your monthly payment? $ b) You round your monthly payment up to the nearest hundred dollars. Adjust your spreadsheet. When do you pay off the loan? $

You take out a 30-year fixed rate mortgage for $160000 at 4.4% compounded monthly. a) Make a spreadsheet and calculate your monthly payment by experimentation. What is your monthly payment? $ b) You round your monthly payment up to the nearest hundred dollars. Adjust your spreadsheet. When do you pay off the loan? $

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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You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.25 percent, or a 15-year mortgage with a rate of 6.50 percent. You will make a down payment of 20 percent of the purchase price.a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid?b. Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?
You want to buy a $215,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if the interest rate is 6%? c) What will your monthly payments be if the interest rate is 7% ?
Please use the TVM solver application on the calculator
You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.25 percent, or a 15-year mortgage with a rate of 6.50 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid? b. Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?
You find a house that you would really like to purchase that is listed for $337000. The bank offers you a loan at 5% APR for 30 years. Calculate your monthly payment. Round your answer to the nearest cent.
You can afford a $950 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How much of that money is interest?
You take out a 14-year personal loan for $13000 at rate of 8.1% which compounds 4 times per year. After 1 years, you refinance the loan and get a 13-year loan at a rate of 6.48%. a) When you first get the loan, how much is your payment? $ 390.24 Correct b) Make a spreadsheet for your loan balance, interest, and payments. After 1 years of paying, how much do you owe? $ c) Adjust your spreadsheet for the new interest rate starting when you refinance in year 1. What is your new payment? $
You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan at 6.55% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?
Suppose you are buying your first condo for $190,000, and you will make a $10,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $808.28 $853.18 $527.78
You buy a rental property, taking out a 15 year loan with monthly payments and a mortgage rate of 4.7%. Your plan is to pay down the remaining balance after 7 years. How much will that balance be if the value of the loan is $250,000? (Answer to nearest dollar. HINT: you must find the payment before you can find the balance.)
You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 7.9% interest.a) How big of a loan can you afford? (Round to the nearest cent, as needed.)$b) How much total money will you pay the loan company? (Round to the nearest cent, as needed.)$c) How much of that money is interest? (Round to the nearest cent, as needed.)$
You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $ EAR: %

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