Homework Answers
Amount borrowed = $50000
interest rate r = 12%
time period t = 30 years
So it is an ordinary annuity, so annual payment A can be calculated using formula
A = PV*r/(1 - (1+r)^(-t)) = $6207.18
amount of annual payment = $6207.18
Add Answer to:
9. Jonathan Dotson wants to borrow $50,000 to buy a house. If he paid equal annual...
Ben Thenking wants to borrow $300,000 to buy a house. He plans to live there for...
Ben Thenking wants to borrow $300,000 to buy a house. He plans to live there for exactly 5 years before selling the house, repaying the lender the balance and moving. Ben is considering a 30 year fully amortizing fixed rate mortgage with monthly payments. The banker shows Ben three loan options: (1) A loan with a 5% annual interest rate which requires Ben to pay 2 points up front, (2) the same terms as (1), but the loan principal is...
You borrow money (take out a mortgage) to buy a house. You borrow $800,000 which you...
You borrow money (take out a mortgage) to buy a house. You borrow $800,000 which you will pay back with 10 equal payments made at the end of each of the next 10 years. The annual interest rate is 7 percent. Your first payment will be ____ principal payment, and _____ interest paid.
Q3: Mike decide to take the mortgage loan to buy a house with total price of...
Q3: Mike decide to take the mortgage loan to buy a house with total price of $200,000.He made 50,000 for down payment. He decided to pay back the money every quarter in the equal amount. What should be his equal quarterly payment be over the next 20 years if the annual interest rate is 7%? Q4: You want to buy a car, and a bank will lend you $30,000. The loan would be fully amortized over 3 years (36 months),...
You would like to buy a house that costs $350,000. You have $50,000 in cash that...
You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 8% per year. You can afford to pay only $25,580 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000....
(Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take...
(Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take out a $150,000, 20 year, 12 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 12 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $ (Round to the nearest cent.)
Q3: Mike decides to take the mortgage loan to buy a house with total price of...
Q3: Mike decides to take the mortgage loan to buy a house with total price of $200,000.He made 50,000 for down payment. He decided to pay back the money every quarter in the equal amount. What should be his equal quarterly payment be over the next 20 years if the annual interest rate is 7%?
3) Sean wants to buy a $180,000 house. He has $20,000 in cash to use as...
3) Sean wants to buy a $180,000 house. He has $20,000 in cash to use as a down payment. The bank offers to lend Sean the remainder at a 6% annual interest rate. The term of the loan is 30 years. Compute the monthly loan payment. 7) Sammy’s Inc. is considering establishing a new machine to automate a meatpacking process. The machine will save $50,000 in labor annually. The machine can be purchased for $200,000 today and will be used...
(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $60000. He paid $25000...
(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $60000. He paid $25000 upfront and agreed to pay the rest over the next 20 years in 20 equal annual payments that include principal payments plus 12 percent compound interest on the unpaid balance. What will these equal payments be? a. Mr. Bill S. Preston, Esq., purchased a new house for $60 000 and paid $25000 upfront. How much does he need to borrow to purchase the house?...
On August 1, you borrow $180,000 to buy a house. The mortgage rate is 7.0 percent....
On August 1, you borrow $180,000 to buy a house. The mortgage rate is 7.0 percent. The loan is to be repaid in equal monthly payments over 15 years. The first payment is due on September 1. How much of the tenth payment applies to the principle balance? (Assume that each month is equal to 1/12 of a year.) Group of answer choices $543.22 $566.24 $589.28 $598.41 $615.32
You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 8% per year. You can afford to pay only $25,580 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000....
(Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take out a $150,000, 20 year, 12 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 12 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $ (Round to the nearest cent.)
Most questions answered within 3 hours.
-
We
conduct A study to estimate the mean age of the population of women
at the...
asked 8 minutes ago -
.13 : Assume that we make an enhancement to a computer that
improves some mode of...
asked 10 minutes ago -
4)
Find the tension in an elevator cable if the 1000 kg elevator is
descending with...
asked 16 minutes ago -
A random sample of 51 newborn babies was taken at the Hospital.
The sample mean was...
asked 14 minutes ago -
Industry standards suggest that 16% of new vehicles require
warranty service within the first year. Jones...
asked 25 minutes ago -
1) Comment of this statement: “A compiler transforms high-level
language statements directly into object codes”.
asked 28 minutes ago -
Calculate the molality, mole-fraction and percent mass of 28.9M
HF at 25 degrees Celcius of the...
asked 37 minutes ago -
A developmental psychologist believes that children raised in
bilingual families will have higher verbal fluency at...
asked 44 minutes ago -
A fast food meal has 5660 kJ of energy. A person uses energy at
a rate...
asked 56 minutes ago -
The pKb for a generic amine(R-NH2)) in
aqueous solution is 6.30. What is its pKa?
asked 58 minutes ago -
The following reactions have the indicated equilibrium constants
at a particular temperature: N2(g) + O2(g) ⇌...
asked 1 hour ago -
Please Help ASAP.
1Consider the below code which iterates over a linked
list of n nodes...
asked 1 hour ago