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A borrower takes out a 15-year mortgage loan for $250.000 with an interest rate of 6%....
A B C A borrower takes out a 29-year mortgage loan for $286,819 with an interest...
A
B
C
A borrower takes out a 29-year mortgage loan for $286,819 with an interest rate of 9%. What would the monthly payment be? A borrower takes out a 30-year mortgage loan for $190,372 with an interest rate of 8% and monthly payments. What portion of the first month's payment would be applied to interest? A borrower has a 25-year mortgage loan for $495,186 with an interest rate of 9% and monthly payments. If she wants to pay off...
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The...
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a “teaser” rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 5%. What would the Year 3 monthly payment be? a. $955 b. $1,071 c. $1,067 d. $1,186 e. Because of the rate cap, the payment would not change.
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000...
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 7%. What would the Year 3 monthly payment be? (15 points) Step I Step2 PV= -179084.11 PV = -200 000 I= 7412=10.58) I=47212= 10.33) N= 336 N=360 130x2)...
show the work on a calculator A borrower takes-out a fully amortizing loan for $1,000,000. The...
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A borrower takes-out a fully amortizing loan for $1,000,000. The term of the loan is 30 years. The initial interest is 6% APR, compounded monthly. After one year, the interest rises to 8% APR, compounded monthly. After two years, the interest falls back to 6% APR, compounded monthly. After three years, the interest further falls to 4% APR, and it remains at 4% APR for the rest of the loan term Part A What...
AP10-1A (Journal entries for a loan) A company takes out a five-year, $1-million mortgage on October...
AP10-1A (Journal entries for a loan) A company takes out a five-year, $1-million mortgage on October 1. The interest rate on the loan is 6% per year, and blended payments of $19,333 (including both interest and principal) are to be made at the end of each month. The following is an extract from the loan amortization table the bank provided the company: Beginning Loan Balance Ending Loan Balance Payment Interest Principal Payment 1 $19,333 $5,000 $1,000,000 985,667 $14,333 14,405 $985,667...
Greg takes out a $22,000 loan to buy new motorcycle. The interest rate is 3.9% per...
Greg takes out a $22,000 loan to buy new motorcycle. The interest rate is 3.9% per year and the term is 84 months. This works out to be a monthly payment of $300. (a) The first payment includes $71.50 of interest. How much principal is in the first payment? (b) What is the new loan balance after Greg makes the first payment? (c) Explain why it is incorrect to say that Greg will pay $71,50x84 = $6006 in total interest....
A borrower takes out a 10-year loan of 1000 at 8% compounded quarterly. The borrower makes...
A borrower takes out a 10-year loan of 1000 at 8% compounded quarterly. The borrower makes quarterly payments. Calculate the amount of principal paid in the ninth payment.
3, Jimmy takes out a $50,000 mortgage on a home at a 5.6% interest rate convertible...
3, Jimmy takes out a $50,000 mortgage on a home at a 5.6% interest rate convertible monthly. He plans to pay off the mortgage with monthly payments for 20 years. Immediately following the 60h payment, he renegotiates the loan. He agrees to make a cash payment of $7500 and will pay the remaining balance with monthly payments over 10 years at a rate of 4.1% convertible monthly. Calculate his new monthly payment.
Mortgage loan commercials and bank banners can be a little confusing due to the fact they...
Mortgage loan commercials and bank banners can be a little confusing due to the fact they report two rates: 1) the stated nominal annual rate that we usually think of as APR which is compounded monthly and is the rate that is used on the actual loan amount to determine the monthly payment, and 2) the “APR” which is somewhat higher and in some ads significantly higher than the first rate. This second “APR” is a stated nominal annual rate...
On January 1, 2020 a company takes out a 5-year mortgage on a new property in...
On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $503,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,724.40. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interest $ Principal $
A
B
C
A borrower takes out a 29-year mortgage loan for $286,819 with an interest rate of 9%. What would the monthly payment be? A borrower takes out a 30-year mortgage loan for $190,372 with an interest rate of 8% and monthly payments. What portion of the first month's payment would be applied to interest? A borrower has a 25-year mortgage loan for $495,186 with an interest rate of 9% and monthly payments. If she wants to pay off...
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 7%. What would the Year 3 monthly payment be? (15 points) Step I Step2 PV= -179084.11 PV = -200 000 I= 7412=10.58) I=47212= 10.33) N= 336 N=360 130x2)...
show the work on a
calculator
A borrower takes-out a fully amortizing loan for $1,000,000. The term of the loan is 30 years. The initial interest is 6% APR, compounded monthly. After one year, the interest rises to 8% APR, compounded monthly. After two years, the interest falls back to 6% APR, compounded monthly. After three years, the interest further falls to 4% APR, and it remains at 4% APR for the rest of the loan term Part A What...
AP10-1A (Journal entries for a loan) A company takes out a five-year, $1-million mortgage on October 1. The interest rate on the loan is 6% per year, and blended payments of $19,333 (including both interest and principal) are to be made at the end of each month. The following is an extract from the loan amortization table the bank provided the company: Beginning Loan Balance Ending Loan Balance Payment Interest Principal Payment 1 $19,333 $5,000 $1,000,000 985,667 $14,333 14,405 $985,667...
Greg takes out a $22,000 loan to buy new motorcycle. The interest rate is 3.9% per year and the term is 84 months. This works out to be a monthly payment of $300. (a) The first payment includes $71.50 of interest. How much principal is in the first payment? (b) What is the new loan balance after Greg makes the first payment? (c) Explain why it is incorrect to say that Greg will pay $71,50x84 = $6006 in total interest....
3, Jimmy takes out a $50,000 mortgage on a home at a 5.6% interest rate convertible monthly. He plans to pay off the mortgage with monthly payments for 20 years. Immediately following the 60h payment, he renegotiates the loan. He agrees to make a cash payment of $7500 and will pay the remaining balance with monthly payments over 10 years at a rate of 4.1% convertible monthly. Calculate his new monthly payment.
On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $503,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,724.40. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interest $ Principal $
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