Daniel and Jan agreed to pay $544,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $70,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.
a. How much is their monthly payment? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
Monthly payment
$
b. After the first payment, what would be the
balance of the principal? (Do not round intermediate
calculations. Round your answers to the nearest dollar
amount.)
| Payment number | Portion to— | Balance of loan outstanding | |
| Interest | Principal | ||
| 1 | $ | $ | $ |
Homework Answers
Loan amount = Present value of future monthly payments = monthly payment * [1-(1+i)^-n]/i
i = interest rate per period
n = number of periods
=>
loan amount = 544000 - 70000 = 474000
=>
monthly payment * [1-(1+0.06/12)^-360]/(0.06/12) = 474000
=>
monthly payment = 2841.87
b)
interest = 474000 * 6%/12 = 2370
principal = 2841.87 - 2370 = 471.87
| Payment number | Portion to— | Balance of loan outstanding | |
| Interest | Principal | ||
| 1 | $2370 | $ 471.87 | $473528.13 |
Add Answer to:
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Edit question Joe Levi bought a home in Arlington, Texas, for $135,000. He put down 30%...
Edit question
Joe Levi bought a home in Arlington, Texas, for $135,000. He put
down 30% and obtained a mortgage for 30 years at 5.00%. (Use Table
15.1.)
. What is Joe’s monthly payment?
(Round your intermediate values and final
answer to the nearest cent.)
Monthly payment
$
b. What is the total interest cost of the loan?
(Use 360 days a year. Round your
intermediate values and final answer to the nearest
cent.)
Total interest cost
$
TABLE 15.1...
Joe Levi bought a home in Arlington, Texas, for $126,000. He put down 30% and obtained a mortgage for 30 years at 7.00%....
Joe Levi bought a home in Arlington, Texas, for $126,000. He put
down 30% and obtained a mortgage for 30 years at 7.00%. What is the
difference in interest cost if he had obtained a mortgage rate of
5.00%? (Use Table 15.1.) (Use 360 days a
year. Round your intermediate values and final answer to the
nearest cent.)
Difference
$
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calculations. Round your final answers to the nearest
cent.)
Portion to—
Payment number
Interest
Principal
Balance of loan
outstanding
1
$
$
$
2
$
$
$
3
$
$
$
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Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $272,000. Her bank requires a...
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Monthly gross income
$
3,450
Down payment to be made (percent of purchase price)
20
Percent
Other debt (monthly payment)
$
220
Monthly estimate for property taxes and insurance
$
280
30-year loan
7.0
Percent
Affordable...
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9)
(Round time value factor to 2 decimal places, intermediate
and final answers to the nearest whole dollar.)
Monthly gross income
$
4,700
Down payment to be made (percent of purchase
price)
20
percent
Other debt (monthly payment)
$
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Monthly estimate for property taxes and
insurance
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490
30-year loan
8.5...
Joe Levi bought a home in Arlington, Texas, for $126,000. He put
down 30% and obtained a mortgage for 30 years at 7.00%. What is the
difference in interest cost if he had obtained a mortgage rate of
5.00%? (Use Table 15.1.) (Use 360 days a
year. Round your intermediate values and final answer to the
nearest cent.)
Difference
$
TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) INTEREST Term in years 34% 5% 5% 6% 6% 7%...
Edit question
Joe Levi bought a home in Arlington, Texas, for $135,000. He put
down 30% and obtained a mortgage for 30 years at 5.00%. (Use Table
15.1.)
. What is Joe’s monthly payment?
(Round your intermediate values and final
answer to the nearest cent.)
Monthly payment
$
b. What is the total interest cost of the loan?
(Use 360 days a year. Round your
intermediate values and final answer to the nearest
cent.)
Total interest cost
$
TABLE 15.1...
Joe Levi bought a home in Arlington, Texas, for $126,000. He put
down 30% and obtained a mortgage for 30 years at 7.00%. What is the
difference in interest cost if he had obtained a mortgage rate of
5.00%? (Use Table 15.1.) (Use 360 days a
year. Round your intermediate values and final answer to the
nearest cent.)
Difference
$
15.1 TABLE Amortization table (mortgage principal and interest per $1,000) INTEREST Term 8/% 31% s% 61% 7% 92% 102% 10%...
Bob Jones bought a new log cabin for $81,000 at 10% interest for
30 years. Prepare an amortization schedule for the first three
periods. (Use Table 15.1.) (Do not round intermediate
calculations. Round your final answers to the nearest
cent.)
Portion to—
Payment number
Interest
Principal
Balance of loan
outstanding
1
$
$
$
2
$
$
$
3
$
$
$
TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) INTEREST Term 31% 9.89 10.6 10.86 11.11 1136...
Sharon Fox decided to buy a
home in Marblehead, Massachusetts, for $272,000. Her bank requires
a 20% down payment. Sue Willis, an attorney, has notified Sharon
that besides the 20% down payment there will be the following
additional costs: (Use Table 15.1.). Recording of the deed $27.00 A
credit and appraisal report 152.00 Preparation of appropriate
documents 45.00 Other closing expenses include a transfer tax of
2.0% of the purchase price and a loan origination fee of 2.0% of
the...
3 You have a mortgage of $73,000 at 9.75% for 30 years. Find the
monthly payment and the total interest. Use Table 14-1 and enter
the total interest as your answer.
TABLE 14-1 Monthly Payments to Amortize Principal and Interest per $1,000 Financed Interest Rate(%) 3.50 3.75 4.18 4.50 4.00 4.25 4.50 4.75 5.00 5.25 5.50 8.04 6.00 5.53 5.75 6.00 6.25 6.50 6.75 7.00 7.07 7.25 SO Monthly Payments (Necessary to amortize a loan of $1,000) 5 10 15...
TILip Submits Check my work 15 Daniel and Jan agreed to pay $556,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $70,000 down payment They have a 30-year mortgage at a fixed rate of 6.00 % 1 a. How much is their monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.) points Monthly payment 2,913.82 eBook Print References b. After the first payment, what would be the balance of the principal? (Do not...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round
time value factor to 2 decimal places, intermediate and final
answers to the nearest whole number.)
Monthly gross income
$
3,450
Down payment to be made (percent of purchase price)
20
Percent
Other debt (monthly payment)
$
220
Monthly estimate for property taxes and insurance
$
280
30-year loan
7.0
Percent
Affordable...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9)
(Round time value factor to 2 decimal places, intermediate
and final answers to the nearest whole dollar.)
Monthly gross income
$
4,700
Down payment to be made (percent of purchase
price)
20
percent
Other debt (monthly payment)
$
260
Monthly estimate for property taxes and
insurance
$
490
30-year loan
8.5...
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