how to solve this problem in detailsHomework Answers
a.
Value for each monthly payment will be calculated as follows
PMT = [P X R X (1+R)^N] / [(1 + R)^N - 1] = $ 4,114.45
where P =400,000
R = 12%/12
N = 30 X 12 = 360
b.
| Payment | Opening balance | Interest | EMI | Prinicpal part | Ending Balance |
| 130 | $ 370,133 | $ 3,701 | $ 4,114 | $ 413 | $ 369,720 |
c.
| 131 | $ 369,720 | $ 3,697 | $ 4,114 | $ 417 | $ 369,303 |
| 132 | $ 369,303 | $ 3,693 | $ 4,114 | $ 421 | $ 368,881 |
| 133 | $ 368,881 | $ 3,689 | $ 4,114 | $ 426 | $ 368,456 |
| 134 | $ 368,456 | $ 3,685 | $ 4,114 | $ 430 | $ 368,026 |
| 135 | $ 368,026 | $ 3,680 | $ 4,114 | $ 434 | $ 367,592 |
| 136 | $ 367,592 | $ 3,676 | $ 4,114 | $ 439 | $ 367,153 |
| 137 | $ 367,153 | $ 3,672 | $ 4,114 | $ 443 | $ 366,710 |
| 138 | $ 366,710 | $ 3,667 | $ 4,114 | $ 447 | $ 366,263 |
| 139 | $ 366,263 | $ 3,663 | $ 4,114 | $ 452 | $ 365,811 |
| 140 | $ 365,811 | $ 3,658 | $ 4,114 | $ 456 | $ 365,355 |
| 141 | $ 365,355 | $ 3,654 | $ 4,114 | $ 461 | $ 364,894 |
| 142 | $ 364,894 | $ 3,649 | $ 4,114 | $ 466 | $ 364,428 |
| 143 | $ 364,428 | $ 3,644 | $ 4,114 | $ 470 | $ 363,958 |
| 144 | $ 363,958 | $ 3,640 | $ 4,114 | $ 475 | $ 363,483 |
| 145 | $ 363,483 | $ 3,635 | $ 4,114 | $ 480 | $ 363,004 |
| 146 | $ 363,004 | $ 3,630 | $ 4,114 | $ 484 | $ 362,519 |
| 147 | $ 362,519 | $ 3,625 | $ 4,114 | $ 489 | $ 362,030 |
| 148 | $ 362,030 | $ 3,620 | $ 4,114 | $ 494 | $ 361,536 |
| 149 | $ 361,536 | $ 3,615 | $ 4,114 | $ 499 | $ 361,037 |
| 150 | $ 361,037 | $ 3,610 | $ 4,114 | $ 504 | $ 360,533 |
| 151 | $ 360,533 | $ 3,605 | $ 4,114 | $ 509 | $ 360,024 |
| 152 | $ 360,024 | $ 3,600 | $ 4,114 | $ 514 | $ 359,509 |
| 153 | $ 359,509 | $ 3,595 | $ 4,114 | $ 519 | $ 358,990 |
| 154 | $ 358,990 | $ 3,590 | $ 4,114 | $ 525 | $ 358,465 |
| 155 | $ 358,465 | $ 3,585 | $ 4,114 | $ 530 | $ 357,936 |
| 156 | $ 357,936 | $ 3,579 | $ 4,114 | $ 535 | $ 357,401 |
| 157 | $ 357,401 | $ 3,574 | $ 4,114 | $ 540 | $ 356,860 |
| 158 | $ 356,860 | $ 3,569 | $ 4,114 | $ 546 | $ 356,314 |
| 159 | $ 356,314 | $ 3,563 | $ 4,114 | $ 551 | $ 355,763 |
| 160 | $ 355,763 | $ 3,558 | $ 4,114 | $ 557 | $ 355,206 |
| 161 | $ 355,206 | $ 3,552 | $ 4,114 | $ 562 | $ 354,644 |
| 162 | $ 354,644 | $ 3,546 | $ 4,114 | $ 568 | $ 354,076 |
| 163 | $ 354,076 | $ 3,541 | $ 4,114 | $ 574 | $ 353,502 |
| 164 | $ 353,502 | $ 3,535 | $ 4,114 | $ 579 | $ 352,923 |
| 165 | $ 352,923 | $ 3,529 | $ 4,114 | $ 585 | $ 352,337 |
| 166 | $ 352,337 | $ 3,523 | $ 4,114 | $ 591 | $ 351,746 |
| 167 | $ 351,746 | $ 3,517 | $ 4,114 | $ 597 | $ 351,149 |
| 168 | $ 351,149 | $ 3,511 | $ 4,114 | $ 603 | $ 350,546 |
| 169 | $ 350,546 | $ 3,505 | $ 4,114 | $ 609 | $ 349,937 |
| 170 | $ 349,937 | $ 3,499 | $ 4,114 | $ 615 | $ 349,322 |
| 171 | $ 349,322 | $ 3,493 | $ 4,114 | $ 621 | $ 348,701 |
| 172 | $ 348,701 | $ 3,487 | $ 4,114 | $ 627 | $ 348,074 |
| 173 | $ 348,074 | $ 3,481 | $ 4,114 | $ 634 | $ 347,440 |
| 174 | $ 347,440 | $ 3,474 | $ 4,114 | $ 640 | $ 346,800 |
| 175 | $ 346,800 | $ 3,468 | $ 4,114 | $ 646 | $ 346,153 |
| 176 | $ 346,153 | $ 3,462 | $ 4,114 | $ 653 | $ 345,500 |
| 177 | $ 345,500 | $ 3,455 | $ 4,114 | $ 659 | $ 344,841 |
| 178 | $ 344,841 | $ 3,448 | $ 4,114 | $ 666 | $ 344,175 |
| 179 | $ 344,175 | $ 3,442 | $ 4,114 | $ 673 | $ 343,502 |
| 180 | $ 343,502 | $ 3,435 | $ 4,114 | $ 679 | $ 342,823 |
New loan amount will be 342,823 X 1.03 = $ 353,108
Total under old = 740,601
Total under new = 536,350
Yes it will be beneficial.
Add Answer to:
how to solve this problem in details
(20 points) You applied at Byblos Bank for a...
Bob Pearson borrowed $20000 from a bank at an interest rate of 11% compounded monthly. The...
Bob Pearson borrowed $20000 from a bank at an interest rate of 11% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $
Bob Pearson borrowed $24000 from a bank at an interest rate of 9% compounded monthly. The...
Bob Pearson borrowed $24000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $ Last saved at 10:20:17
A borrower has a $90000 loan with the "Easy-Credit" Finance Company. The loan is to be...
A borrower has a $90000 loan with the "Easy-Credit" Finance Company. The loan is to be repaid over 12 years via monthly payments at 7.4%/year compounded monthly. Just after the 36th payment, the borrower learns that his local bank would lend him money at 5.4%/year compounded monthly. Assuming that the contract stipulates an early repayment penalty equal to 3 months' interest on the outstanding balance at the time of refinancing, what would be the new monthly payment?
13. [-/0.1 Points] DETAILS TANAPMATHS 4.3.036. MY NOTES PRACTICE ANOTHER Darla purchased a new car during...
13. [-/0.1 Points] DETAILS TANAPMATHS 4.3.036. MY NOTES PRACTICE ANOTHER Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $18,000 at a rate of 6%/year compounded monthly. Her bank is now charging 11.7%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3...
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment include...
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3000 payment at the end of four years. The interest is accrued at an annual nominal rate of discount equal to 5% compounded semiannually. The second loan is repaid by a 4000 payment at the end of five years. The interest is accrued at an annual...
Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of...
Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of 3% APR compounded monthly. The mortgage is a standard fixed rate mortgage with equal monthly payments over the life of the loan. What are the monthly fixed mortgage payments on this mortgage (i.e., the minimum required monthly payments to pay down the mortgage in 30 years)? What is the remaining loan balance immediately after making the 120th monthly payment (i.e., 10 years after initially...
5. Bank loans Short-term financing through bank loans Consider this case: Central Corp. needs to take...
5. Bank loans Short-term financing through bank loans Consider this case: Central Corp. needs to take out a one-year bank loan of $500,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 9% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 6% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day year,...
You want to borrow $10,000 from a local bank, which is to be repaid in 2...
You want to borrow $10,000 from a local bank, which is to be repaid in 2 equal semiannual installments. The loan officer initially offered an interest rate of 12% compounded monthly. However, you were able to negotiate that interest be compounded semiannually instead of monthly. With this negotiation, how much do you save in total interest payments over the loan life?
Please explain in details on how to calculate (b) and (c). Thank you. You wish to...
Please explain in details on how to calculate (b) and (c).
Thank you.
You wish to buy a house five years from now, which will expectantly cost $550,000 after five years. You will pay parts of this price from your personal deposit. You will cover the rest of the purchase price by taking two types of loans at the time of purchase: a 4-year fixed-interest personal loan of $20,000 - a 25-year fixed-interest house loan for the rest of the...
You borrow $500,000 to purchase a home. The bank charges an interest rate of 5.75 percent...
You borrow $500,000 to purchase a home. The bank charges an interest rate of 5.75 percent (APR) and the loan will be paid in equal monthly installments over 30 years. What is your monthly payment? What is the total interest paid over 30 years? How much interest is paid in the first payment? What is the effective interest rate (EAR) on the loan?
Bob Pearson borrowed $20000 from a bank at an interest rate of 11% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $
Bob Pearson borrowed $24000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $ Last saved at 10:20:17
13. [-/0.1 Points] DETAILS TANAPMATHS 4.3.036. MY NOTES PRACTICE ANOTHER Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $18,000 at a rate of 6%/year compounded monthly. Her bank is now charging 11.7%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3...
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3000 payment at the end of four years. The interest is accrued at an annual nominal rate of discount equal to 5% compounded semiannually. The second loan is repaid by a 4000 payment at the end of five years. The interest is accrued at an annual...
5. Bank loans Short-term financing through bank loans Consider this case: Central Corp. needs to take out a one-year bank loan of $500,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 9% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 6% add-on interest to be repaid in 12 equal monthly installments. Based on a 360-day year,...
Please explain in details on how to calculate (b) and (c).
Thank you.
You wish to buy a house five years from now, which will expectantly cost $550,000 after five years. You will pay parts of this price from your personal deposit. You will cover the rest of the purchase price by taking two types of loans at the time of purchase: a 4-year fixed-interest personal loan of $20,000 - a 25-year fixed-interest house loan for the rest of the...
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 14 minutes ago -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 19 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 34 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 28 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 41 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 50 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 49 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 51 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 52 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 56 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 1 hour ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 1 hour ago