You wish to buy a house for $170,000. You want to put down a down payment first, then mortgage the rest. How much would the down payment be and how much would the mortgage be for the following percentages? Answer to nearest whole dollar. a) 15% down payment b) mortgage loan amount after 15% down payment c) 20% down payment d) mortgage loan amount after 20% down payment

You wish to buy a house for $170,000. You want to put down a down payment first, then mortgage the rest. How much would the down payment be and how much would the mortgage be for the following percentages? Answer to nearest whole dollar. a) 15% down payment b) mortgage loan amount after 15% down payment c) 20% down payment d) mortgage loan amount after 20% down payment

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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Loan Basics Inputs Present value 325,000 Interest rate/year Number of years 4.00% 30 Present Value using a Time Line Year 10 15 20 25 30 Beginning Principal Balance Payment Interest component Principal component
You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the loan's EFF%? Do not round intermediate calculations. Round your answer to two decimal places. %
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 plan to purchase a house for $295000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. Your bank offers you the following two options for payment. Option 1: Mortgage rate of 5.35 percent and 1 point. Option 2: Mortgage rate of 5.25 percent and 2 points. Which option should you choose?
The formula below finds the monthly payment for a loan (car, mortgage, student): P=I (r/1-(1+r)-n ) 7. If you want to buy a car that costs $16,000 with a loan at 3% APR how many years should you finance the car if you want your payment to be below $230? Do this problem any way you want, but clearly communicate your thinking.
You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price and monthly payments. You will not pay off the mortgage early. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 3.75 percent and zero points. Option 2: Mortgage rate of 3.50 percent and 2 points. Which of the following is correct? Round your calculations/answers to two decimals. I. In exchange for $4,000 up front, Option 2 reduces your monthly mortgage payments by $28.14. II. The present value of the monthly savings is less than the points paid up front. III. Option 1 is the better choice. Formulas and Equations M = where P is principal, M is periodic payment, y interest rate, PVIFAny% = In period j, principal repayment is AMj = M Interest payment is is Ij = M[ ]=M - AMj Group of answer choices I only II only I and II only II and III only I, II, and III
You purchase a home for $400,000 and make a down payment of $125,000. The balance is borrowed and financed as follows: 4 year mortgage, 5% interest, paid as an ordinary annuity. How much total interest is paid on the loan?
Please build an excel spreadsheet and show the formulas to answer a. through g. using the information below You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000. a. What is your loan amount? b. What is your monthly payment? c. What will be the loan balance at the end of nine years? d. What is the effective borrowing cost if the loan will be prepaid at the end of nine years? e. In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month? f. What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)? g. What is your annual percentage rate (APR)?
You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 4.65% interest for the rest. The bank will charge 1.5 points on the amount financed. year loan at a) What is the amount of the down payment? b) How much is the loan amount going be? c) What will be the amount charged for 1.5 points? 1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here
You want to buy a $216,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 3.25% interest for the rest.a) What is the amount of the down payment?b) What will the amount of the mortgage?c) The bank charges 2 points on the loan. What is the amount charged for points?
The Becker family is getting a home loan to finance a $260,000 mortgage. While looking for a mortgage, they found two alternatives: Mortgage A 30-year loan with an interest rate of 3.611% and a monthly payment of $1,184. Mortgage B 15-year loan with an interest rate of 2.7% Recall: Loan Payment Formula.png| A. Calculate the total amount paid for Mortgage A. B. Calculate the total interest paid for Mortgage A. C. Calculate the monthly payment for Mortgage B. D. Calculate the total amount paid for Mortgage B. E. Calculate the total interest paid for Mortgage B. F. Write a two or more sentences giving the Becker family some advice about which mortgage to choose. G. Why might the Becker family not take your advice from part c)? Answer in one or two sentences.
Please provide answer to part b of the question. Please answer by using formula, not excel.

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