A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 10 years ago for $68,132. The home was financed by paying 20% down and signing a 30-year mortgage at 8.4% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? $100,000. After making their 120th payment, Amount of loan: S (Round to the nearest dollar.)

A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 10 years ago for $68,132. The home was financed by paying 20% down and signing a 30-year mortgage at 8.4% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? $100,000. After making their 120th payment, Amount of loan: S (Round to the nearest dollar.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Anna’s investment. What is the current yield and capital gain on her investment?
Three college friends decided to buy a “fixer-upper” apartment building in Modesto, California after graduating from UC San Diego in 2020. They expected to achieve a significant appreciation on their investment after they remodeled and sold the property. At the time, they could finance the acquisition with either: (A) a 25-year fully amortizing fixed rate mortgage loan payable monthly from Bank of the West with a ten percent down payment and a 6.0% annual interest rate, or (B) a 25-year fully amortizing fixed rate mortgage loan payable monthly from Cathay Bank with a five percent down payment and a 6.25% annual interest rate. What is the effective annual interest rate on the additional amount borrowed if they took the loan from Cathay Bank? a. 12.59% b. 6.25% c. 9.99% d. 10.39%
Calculate the present value of a $1,000 zero-coupon bond with six years to maturity if the yield to maturity is 7%.
A real estate investor based in Corona Del Mar, California borrowed $43,200,000 from Union Bank secured by a 188,000 square foot suburban shopping center that she owned. The loan was a ten-year interest-only variable rate mortgage loan payable monthly with 30-day SOFR as the rate index. For the first two years, the loan had a teaser rate of 2%, after which the interest rate resets annually with 2% annual and 6% lifetime interest rate increase caps and a margin of 2.5%. On the first reset date, the 30-day SOFR was 3.5%. What was the monthly loan payment for the third loan year? a. Because of the interest rate caps, the monthly payment would not change b. $198,000 c. $144,000 d. $216,000
o acquire a 400,000 square foot industrial park in Boca Raton, Florida at a purchase price of $40 million, an investor put down 40% and borrowed $24 million with a 30-year fully amortizing fixed rate mortgage loan at an annual contract interest rate of 5% payable monthly. The borrower was charged two points by the lender that was deducted from the loan amount at closing. If the monthly payments on the loan were paid on time each month and if the loan was carried to maturity, what was the APR on the loan? a.5.28% b.5.38% c.5.18% d.5.08%
Kayla took out an amortized loan of $240,000 with a 5% interest rate. Her monthly payment is $1,288.37. How much will she pay in interest on her first monthly payment? $1.200 $1.150 $1.000 $900
You have deposited $10,800 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of 10 years? $16,564.89 $27,213.75 $23,664.13 $28,396.96
If the contract annual interest rate on a $2,880,000 fixed rate loan that is fully amortizing over 20 years with equal monthly payments is 6.25%, what is the effective yield to the lender if the lender charges 1.5% as an origination fee, $288 for a credit report and $3,080 for an appraisal fee and the loan is repaid after ten years? a. 6.25% b. 6.51% c. 6.46% d. 6.49%
Calculate the annuity payment for a loan of $850,000 loan and interest rate at 10%,
A property investor bought a restored 26-unit apartment building in Truckee, Nevada in 2018 for $6,000,000 with a 75% LTV fixed rate fully amortizing first mortgage loan that had a five year lockout on prepayment. By 2022, the apartment building had increased in value to almost $10,000,000 due to the continuing growth in the local economy and falling cap rates. Because of the prepayment lockout, the investor could not refinance the first mortgage loan, so she instead found a lender who would place a $3,000,000 second mortgage loan on the property. The interest rate charged by the second mortgage lender would likely be: a. Unrelated to the risk of the second mortgage loan b. Higher than the rate on the underlying first mortgage loan c. Lower than the rate on the underlying first mortgage loan d. The same as the rate on the underlying first mortgage loan
A shopping center investor bought a 36,000 square foot shopping center in Calabasas, California with a 25-year fully amortizing fixed rate mortgage loan at a stated annual interest rate of 5.5%, a loan to value ratio of 80%, and a down payment of $600,000. What was the purchase price of the property? a.$750,000 b.$480,000 c.$2,400,000 d. $3,000,000
Ana de la Cruz expects to receive P20,940 at the beginning of each period per year in Social Security payments. Assume that she receives these payments for 28 years and use a rate of 6% per year. Find the present value of her retirement payments.