Question

5) Al obtained a mortgage of $195,000 at 5.25 percent for 15 years. How much of second monthly payment is applied to interest
0 0
Add a comment Improve this question Transcribed image text
Answer #1

5) First, let's find the monthly payment

I/Y = Monthly interest rate = 5.25/12 = 0.4375

N = 180

PV = 195,000

FV = 0

Compute PMT

PMT = -1,567.561545

With this payment now let's find the principal amount at the end of first payment

N = 179

I/Y = 0.4375

PMT = -1,567.561545

FV = 0

CPT PV

PV = 194,285.563455

Interest amount = 194,285.563455 * 0.4375/100 = $849.9993401156 ~ $850 (Option A)

Please do not downvote for not answering the remaining questions. As per HOMEWORKLIB RULES, when there are multiple questions, we are encouraged to provide a solution to at least the first question.

Can you please upvote? Thank You :-)

Add a comment
Know the answer?
Add Answer to:
5) Al obtained a mortgage of $195,000 at 5.25 percent for 15 years. How much of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value,...

    19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is 6.97 percent? A. $799.32 B. $848 16 C. $917.92 D. $1,005.46 E. None of the above.l 19. A bond has 8 years to maturity, a 7 percent coupon, a $1,000 face value, and pays interest semi-annually. What is the bond's current price if the yield to maturity is...

  • You borrow $350,000 to buy a house. The mortgage rate is 4.2 percent and the loan...

    You borrow $350,000 to buy a house. The mortgage rate is 4.2 percent and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay? A. $277,086.67 B. $313,727.06 C. $382,512.65 D. $266,161.60

  • You plan to purchase a $300,000 house using a mortgage obtained from your bank. The Mortgage...

    You plan to purchase a $300,000 house using a mortgage obtained from your bank. The Mortgage rate offered to you is 4.50 percent for a 15 year Mortgage. You will make a down payment of 20 percent of the purchase price. Either using formula or Excel, calculate: A. Calculate your monthly payments on this mortgage? B. What is your loan balance at the end of 4 years (48 payment)? C. What is your loan balance at the end of 10...

  • -What is the future value of $1,200 a year for 40 years at 8 percent interest?...

    -What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.   A. $301,115 B. $306,492 C. $310,868 D. $342,908 E. $347,267 -Karen is borrowing $17,800 to buy a car. The terms of the loan call for monthly payments for 5 years at 8.6 percent interest. What is the amount of each payment?   A. $287.71 B. $291.40 C. $301.12 D. $342.76 E. $366.05 -Jonathan Corp. is evaluating a project with an initial cash...

  • 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...

  • Real Estate Finance answer all please . John Corbitt takes a fully amortizing mortgage for $80,000 at 10 pe...

    Real Estate Finance answer all please . John Corbitt takes a fully amortizing mortgage for $80,000 at 10 percent interest for 30 years, monthly payments. What will be his monthly payment? 2. Dave Burns wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Dave can afford a monthly payment of $600, principal and interest. If the current interest rate on 30-yearm fixed-rate mortgage is 9.50 percent, what is the maximum...

  • You plan to purchase an $50,000 house using a 15-year mortgage obtained from your local bank....

    You plan to purchase an $50,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 7.5 percent. You will make a down payment of 10 percent of the purchase price. 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 payment. d. Calculate the amount of interest...

  • A $150,000 mortgage is amortized over 25 years. If interest on the mortgage is 3.5 percent...

    A $150,000 mortgage is amortized over 25 years. If interest on the mortgage is 3.5 percent compounded semi-annually, calculate the size of monthly payments made at the end of each month. A. $784.91 B. $748.91 C. $734.91 D. $743.91

  • glancing A home mortgage with monthly payments for 30 years is available at 6% interest. The...

    glancing A home mortgage with monthly payments for 30 years is available at 6% interest. The home you are buying costs $120,000, and you have saved $12.000 to meet the requirement for a 10% down payment. The lender charges "points" of 2% of the loan value as a loan origination and processing fee. This fee is added to the initial balance of the loan (a) What is your monthly payment? (b) If you keep the mortgage until it is paid...

  • 15. Redesigned Computers has 7 percent coupon bonds outstanding with a current market price of $687.00....

    15. Redesigned Computers has 7 percent coupon bonds outstanding with a current market price of $687.00. Interest is paid annually. The yield to maturity is 12 percent and the face value is $1,000. How many years is it until these bonds mature? A. 6.64 years B. 7.35 years C. 12.28 years D. 18.14 years E. 23.87 years 16. Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 5 years. How...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT