Homework Answers
| A) | Monthly payment (using formula for loan amortization) = 286819*(0.09/12)*(1+0.09/12)^348/((1+0.09/12)^348-1)) = | $ 2,323.69 |
| B) | Monthly payment (using formula for loan amortization) = 190372*(0.08/12)*(1+0.08/12)^360/((1+0.08/12)^360-1)) = | $ 1,396.88 |
| Interest on the first installment = 190372*0.08/12 = | $ 1,269.15 | |
| Portion of installment = 1269.15/1396.88 = | 90.86% | |
| C) | Monthly payment (using formula for loan amortization) = 495186*(0.09/12)*(1+0.09/12)^300/((1+0.09/12)^300-1)) = | $ 4,155.58 |
| Outstanding balance after 8 years is the PV of the remaining installments = 4155.58*((1+0.09/12)^204-1))/((0.09/12)*(1+0.09/12)^204)) = | $ 4,33,412.92 |
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A borrower takes out a 15-year mortgage loan for $250.000 with an interest rate of 6%. What would the monthly payment be? (A) $694 (B) $1,042 (C) $1,342 (D) $1,355 (E) $2,110 Regarding the above question, what portion of the first month's payment would be applied to interest? (A) $694 (B) $1,042 (C) $1,250
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000...
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show the work on a calculator A borrower takes-out a fully amortizing loan for $1,000,000. The...
show the work on a
calculator
A borrower takes-out a fully amortizing loan for $1,000,000. The term of the loan is 30 years. The initial interest is 6% APR, compounded monthly. After one year, the interest rises to 8% APR, compounded monthly. After two years, the interest falls back to 6% APR, compounded monthly. After three years, the interest further falls to 4% APR, and it remains at 4% APR for the rest of the loan term Part A What...
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2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 7%. What would the Year 3 monthly payment be? (15 points) Step I Step2 PV= -179084.11 PV = -200 000 I= 7412=10.58) I=47212= 10.33) N= 336 N=360 130x2)...
3, Jimmy takes out a $50,000 mortgage on a home at a 5.6% interest rate convertible monthly. He plans to pay off the mortgage with monthly payments for 20 years. Immediately following the 60h payment, he renegotiates the loan. He agrees to make a cash payment of $7500 and will pay the remaining balance with monthly payments over 10 years at a rate of 4.1% convertible monthly. Calculate his new monthly payment.
show the work on a
calculator
A borrower takes-out a fully amortizing loan for $1,000,000. The term of the loan is 30 years. The initial interest is 6% APR, compounded monthly. After one year, the interest rises to 8% APR, compounded monthly. After two years, the interest falls back to 6% APR, compounded monthly. After three years, the interest further falls to 4% APR, and it remains at 4% APR for the rest of the loan term Part A What...
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