Homework Answers
| Total Interest to be paid = Total Amount To Be Paid - (house price- down payment) | ||||||||||
| = (25 years *12 m *$1353.03 per m) - ($250000-40000) | ||||||||||
| =$405909 -$210000 | ||||||||||
| =$195909 | ||||||||||
| Equity After 10 years | ||||||||||
| = Price of house - outstanding loan after 10 years i.e. pv of future loan payment | ||||||||||
| = $250000 - P [1-(1+r)^-n]/r | ||||||||||
| Where, | ||||||||||
| p = Monthly payment | ||||||||||
| r= monthly interest rate i.e.0.06/12=0.005 | ||||||||||
| n= number of installment i.e. 15*12 =180 | ||||||||||
| =$250000 -[$1353.03[1-(1+0.005^-180]/0.005 | ||||||||||
| =$250000-160338.8 | ||||||||||
| $ 89,661.20 | ||||||||||
Add Answer to:
5. A couple has decided to purchase a $250,000 house welded to purchase a $250,000 house...
(1 point) A couple has decided to purchase a $100000 house using a down payment of $13000. They c...
(1 point) A couple has decided to purchase a $100000 house using a down payment of $13000. They can amortize the balance at 5% over 20 years. a) What is their monthly payment? Answer $ b) What is the total interest paid? Answer $ c) What is the equity after 5 years? Answer $ d) What is the equity after 15 years? Answer $
(1 point) A couple has decided to purchase a $100000 house using a down payment of...
Problem 2 - To offset the cost of buying a $75,000 house, a couple borrowed $12,500...
Problem 2 - To offset the cost of buying a $75,000 house, a couple borrowed $12,500 from their parents at 6% nominal interest, compounded monthly. The loan from their parents is to be paid off in five years in equal monthly payments. The couple has saved $11,250. Their total down payment is therefore $12,500 + 11,250 = $23,750. The balance will be mortgaged at 9% nominal interest, compounded monthly for 30 years. Find the combined monthly payment (monthly payments to...
Question 5 (5 points) Ahmad has decided to purchase a house instead of renting an apartment....
Question 5 (5 points) Ahmad has decided to purchase a house instead of renting an apartment. He has $6000 to use as a present down payment for the house and agreed with the bank to pay monthly payments of $2000 starting one month from now. If the nominalDinterest rate of the loan is 12% peryear compounded monthly and the loan will be paid in 7 years, how much will Ahmad pay for this house in total at the end of...
You want to buy a house and take out a mortgage for $250,000. The only mortgage...
You want to buy a house and take out a mortgage for $250,000. The only mortgage that you can afford is a 30 year ARM that has a fixed rate of 3% annual compounded monthly for the first 3 years and then can adjust every year after that. Against the advice of a wise EMIS professor that you once had, you decided to take the mortgage. a) What is the monthly payment for his home mortgage for the first 3...
Problem 4 and 5-7 House Appreciation and Mortgage Payments Say that you purchase a house for...
Problem 4 and 5-7 House Appreciation and Mortgage Payments Say that you purchase a house for $320,000 by getting a mortgage for $280,000 and paying a $40.000 down payment you get a 30 year mortgage with an interest rate of 8 percent, what are the monthly payments (Do not round Intermediate calculations and round your final answer to 2 decimal places.) sont What would the loan balance be in ten years? (Round the payment amount to the nearest cent but...
You plan to purchase a $190,000 house using a 15-year mortgage obtained from your local credit...
You plan to purchase a $190,000 house using a 15-year mortgage obtained from your local credit union. The mortgage rate offered to you is 6.75 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the first six payments. You plan to purchase a $270,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.45...
A man buys a house for $255,000. He pays $40,000 down and takes out a mortgage...
A man buys a house for $255,000. He pays $40,000 down and takes out a mortgage at 6.9% on the balance. Find his monthly payment and the total amount of interest he will pay if the length of the mortgage is (a) 15 years; (b) 20 years; (c) 25 years. (d) When will half the 20-year loan be paid off? (a) For the 15-year mortgage, the man will make monthly payments of $| (Do not round until the final answer....
9. You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your...
9. You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price and monthly payments. You will not pay off the mortgage early. Your bank offers you the following two options for payment: i blaivini l Option1: Mortgage rate of 5.25 percent and I point. Option2: Mortgage rate of 5 percent and 2.5 points. bloy Trolovi po brol a. Calculate your...
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...
A. You’ve decided to buy a house that is valued at $1 million. You have $250,000...
A. You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $750,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loan’s annual percentage rate or APR). Under this loan proposal, your mortgage payment will be _________per month. (Note:...
(1 point) A couple has decided to purchase a $100000 house using a down payment of $13000. They can amortize the balance at 5% over 20 years. a) What is their monthly payment? Answer $ b) What is the total interest paid? Answer $ c) What is the equity after 5 years? Answer $ d) What is the equity after 15 years? Answer $
(1 point) A couple has decided to purchase a $100000 house using a down payment of...
Problem 2 - To offset the cost of buying a $75,000 house, a couple borrowed $12,500 from their parents at 6% nominal interest, compounded monthly. The loan from their parents is to be paid off in five years in equal monthly payments. The couple has saved $11,250. Their total down payment is therefore $12,500 + 11,250 = $23,750. The balance will be mortgaged at 9% nominal interest, compounded monthly for 30 years. Find the combined monthly payment (monthly payments to...
Question 5 (5 points) Ahmad has decided to purchase a house instead of renting an apartment. He has $6000 to use as a present down payment for the house and agreed with the bank to pay monthly payments of $2000 starting one month from now. If the nominalDinterest rate of the loan is 12% peryear compounded monthly and the loan will be paid in 7 years, how much will Ahmad pay for this house in total at the end of...
Problem 4 and 5-7 House Appreciation and Mortgage Payments Say that you purchase a house for $320,000 by getting a mortgage for $280,000 and paying a $40.000 down payment you get a 30 year mortgage with an interest rate of 8 percent, what are the monthly payments (Do not round Intermediate calculations and round your final answer to 2 decimal places.) sont What would the loan balance be in ten years? (Round the payment amount to the nearest cent but...
A man buys a house for $255,000. He pays $40,000 down and takes out a mortgage at 6.9% on the balance. Find his monthly payment and the total amount of interest he will pay if the length of the mortgage is (a) 15 years; (b) 20 years; (c) 25 years. (d) When will half the 20-year loan be paid off? (a) For the 15-year mortgage, the man will make monthly payments of $| (Do not round until the final answer....
9. You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price and monthly payments. You will not pay off the mortgage early. Your bank offers you the following two options for payment: i blaivini l Option1: Mortgage rate of 5.25 percent and I point. Option2: Mortgage rate of 5 percent and 2.5 points. bloy Trolovi po brol a. Calculate your...
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...
Most questions answered within 3 hours.
-
The historical returns on a balanced portfolio have had an
average return of 11% and a...
asked 3 minutes ago -
Sulfuric acid (250.0mL) is titrated with 176.5 mL 2.4 M NaOH to
an equivalence point (the...
asked 15 minutes ago -
The quality control manager of a cookie company is inspecting a
batch of chocolate-chip cookies that...
asked 17 minutes ago -
How can we identify what the horizontal force is when looking at
a merry go round?...
asked 49 minutes ago -
While Dime Community Bank is based in Brooklyn; management has
decided to focus its lending activity...
asked 1 hour ago -
1) Earnings functions, whereby the log of earnings is regressed
on years of education, years of...
asked 47 minutes ago -
Bruno Corporation is involved in the business of injection
molding of plastics. It is considering the...
asked 53 minutes ago -
What would be the vapor pressure of water at 96°C above a
solution made by dissolving...
asked 1 hour ago -
Hydration of norbornene
Write the reaction. Discuss the intermediate. Explain how the
equilibrium in the reaction...
asked 1 hour ago -
Suppose that a party wanted to enter an FRA that expires in 42
days and is...
asked 1 hour ago -
ABC Ltd. estimated that a new store requires an initial
investment of $800,000. This new store...
asked 1 hour ago -
1. Review the Nike’s marketing strategy. You must include the
company’s target market, possible market segmentation,...
asked 1 hour ago