In Excel Please show how to solve this and please show step by step how to solve to answer questions A. and B. . You borrow a Graduated Payment Mortgage (GPM) of $400,000 with monthly payments and 15-year term. The annual interest rate is 4%. The lender allows you to pay only 0.5 monthly PMT for the first 5 years and pay full monthly PMT thereafter. In other words, your payment factors are as follows: month 1-month 60: 50%; and month 61- month 180: 100%. Suppose that the origination cost of the loan is $5,000, please answer the following questions: A. What is your monthly payment for the first 5 years? B. What is your annual effective cost of the GPM if you hold the loan for an entire term?

In Excel Please show how to solve this and please show step by step how to solve to answer questions A. and B. . You borrow a Graduated Payment Mortgage (GPM) of $400,000 with monthly payments and 15-year term. The annual interest rate is 4%. The lender allows you to pay only 0.5 monthly PMT for the first 5 years and pay full monthly PMT thereafter. In other words, your payment factors are as follows: month 1-month 60: 50%; and month 61- month 180: 100%. Suppose that the origination cost of the loan is $5,000, please answer the following questions: A. What is your monthly payment for the first 5 years? B. What is your annual effective cost of the GPM if you hold the loan for an entire term?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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Please show how to solve this and please show step by step how to solve to answer questions A. and B. . You borrow a Graduated Payment Mortgage (GPM) of $400,000 with monthly payments and 15-year term. The annual interest rate is 4%. The lender allows you to pay only 0.5 monthly PMT for the first 5 years and pay full monthly PMT thereafter. In other words, your payment factors are as follows: month 1-month 60: 50%; and month 61- month 180: 100%. Suppose that the origination cost of the loan is $5,000, please answer the following questions: A. What is your monthly payment for the first 5 years? B. What is your annual effective cost of the GPM if you hold the loan for an entire term?
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Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month’s payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $
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Please show step by step and formulas to solve and answer A. and B. You borrow a Graduated Payment Mortgage (GPM) of $400,000 with monthly payments and 15-year term. The annual interest rate is 4%. The lender allows you to pay only 0.5 monthly PMT for the first 5 years and pay full monthly PMT thereafter. In other words, your payment factors are as follows: month 1-month 60: 50%; and month 61- month 180: 100%. Suppose that the origination cost of the loan is $5,000, please answer the following questions: A. What is your monthly payment for the first 5 years? B. What is your annual effective cost of the GPM if you hold the loan for an entire term?
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