10A) and 10B)
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10.A (7 points) You just bought a house for 500,000 dollars. You put 100,000 + 100.000...
You bought a house for $500,000 with a 10% down. The mortgage is 30 year and you make monthly payments. Your interest rate is 12% APR. At the end of 10th year, you found that you are able to borrow at 6% APR. How much can you save through refinancing (at the end of 10th year)? Give me the specific explanation plz
Use the following information for questions 3 -6 You borrow $100,000 using a 30-year fixed rate mortgage with monthly payments. The stated annual interest rate is 10% with monthly compounding. The first payment is due in one year (i.e., t-1; today is 0) Question 3 Calclate the monthly payments. Question 4 Calculate the interest for the second payment. Question 5 Calculate the outstanding balance after making the second payment. Question 6 Now suppose that the mortgage loan requires an upfront...
Intro You just took out a 15-year traditional fixed-rate mortgage for $500,000 to buy a house. The interest rate is 2.4% (APR) and you have to make payments monthly. Attempt 1/10 for 10 pts. Part 1 What is your monthly payment? No decima Submit Part 2 Attempt 1/10 for 10 pts. How much of your first monthly payment goes towards paying down the outstanding balance (in $)? No decima Submit Part 3 Attempt 1/10 for 10 pts. What is the...
Your have just sold your house for $1,050,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 7.75% (APR with semi-annual compounding), how much cash will you have from the sale once you pay off the mortgage? a) The discount rate for the mortgage is___? b) Mortgage payments...
6–32. (Calculating the components of an annuity payment) You have just bought a house inom do for €270,000 by taking a 20-year mortgage for the same amount at 8 percent per an- num payable in monthly installments. What will your monthly payments be? Use a spreadsheet to calculate your answer. Now calculate the amounts in the 50th monthly payment that goes toward interest and principal, respectively.
I know the answer is E, just would like it explained better 10. Frank Lewis has a 30-year, $100.000 mortgage with a nominal interest rate of 10 percent and monthly compounding. Which of the following statements regarding his mortgage is most correct? a. The monthly payments will decline over time. b. The proportion of the monthly payment that represents interest will be lower for the last payment than for the first payment on the loan. c. The total dollar amount...
Problem 7-3 (LG 7-4) 10 You plan to purchase an $140,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 5 percent. You will make a down payment of 10 percent of the purchase price. points Skipped a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 120th payment. c. Calculate the amount of interest and, separately, principal paid in the 150th...
Consider two ways of getting a mortgage on a house worth $750,000. You plan to make a down payment of $300,000 at closing. You need to borrow the rest of the $450,000. The first option is a 15 year fixed-rate mortgage at a 5.25% effective annual interest rate (assume monthly compounding with 12 payments per year to get a monthly interest rate). In the second option, you can “buy” a lower effective annual interest rate of 4.5% by paying the...
You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.)
1. You have just purchased a new house and taken a mortgage for $100,000. The interest rate is 12% compounded monthly and you will make payments for 25 years. a) Find the size of the monthly payment. b) The bank has a policy of rounding the payments up to the next cent. Find the new monthly payment and compute a new n. c) What was the balance of the loan after three periods? d) How much of your third payment was Principal? Interest? e) How much did...