You want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year loan at 3.5% interest for the rest. a) What is the amount of the payment? b) If the bank charges 3 points on the loan, what is the amount charged for points? c) If the bank charges 3 points on the loan, what is the true interest rate?

You want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year loan at 3.5% interest for the rest. a) What is the amount of the payment? b) If the bank charges 3 points on the loan, what is the amount charged for points? c) If the bank charges 3 points on the loan, what is the true interest rate?

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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4. You are purchasing a house for $310,000. You plan to take out a 25-year loan to pay for the house.a. What will your monthly payments be if the interest rate is 5%?b. What will your monthly payments be if the interest rate is 6%
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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?
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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.)$c) How much of that money is interest? (Round to the nearest cent, as needed.)$
K You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $5,500. You plan to put down $1,200 and borrow $4,300. You will need to make annual payments of $1,200 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) OA. Year Cash Flow $4,300 0 OB. Year 0 Cash Flow - $1,200 OC. Year Cash Flow $5,500 0 OD. Year 1 - $1,200 1 $1,200 2 Cash Flow - $4,300 $1,200 - $1,200 2 $1,200 - $1,200 - $1,200 2 $1,200 3 - $1,200 3 $1,200 3 - $1,200 3 $1,200 - $1,200 4 $1,200 4 - $1,200 4 $1,200 5 - $1,200 5 $1,200 5 - $1,200 5 $1,200
1. You deposited PHP1,500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit 2. You need to save up for P1,500 in 1 year. How much should you save now if the bank offers a rate of 5%? (Find the present value)
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