Am. 101. Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the followingsituations?Note: Round time value factor and final answers to 2 decimal places.What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthlypayment?Monthly MortgagePayment$877.76a. $104,000, 15-year loan at 6.00 percent.b. $89,000, 30-year loan at 7.00 percent.c. $101,000, 20-year loan at 7.50 percent.d-1. Longer mortgage terms mean ad-2. For increase in mortgage ratemonthly payment.monthly payment is required.www

Amortization refers to the process of gradually paying off a debt, typically a loan, through regular…

ased on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for ea tuations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgag ayment? a. $104,000, 15-year loan at 6.00 percent. b. $89,000, 30-year loan at 7.00 percent. c. $101,000, 20-year loan at 7.50 percent. Monthly Mortgage Payment $ 877.76

ased on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for ea tuations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgag ayment? a. $104,000, 15-year loan at 6.00 percent. b. $89,000, 30-year loan at 7.00 percent. c. $101,000, 20-year loan at 7.50 percent. Monthly Mortgage Payment $ 877.76

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a. $61,000, 15-year loan at 7.50 percent. b. $151,000, 30-year loan at 8.00 percent. c. $88,000, 20-year loan at 6.50 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate Monthly Mortgage Payment monthly payment. monthly payment is required.
Based on Exhibit 9-9 or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a $119,000, 15-year loan at 6.00 percent. b. $103,000, 30-year loan at 8.00 percent. c. $96,000, 20-year loan at 5.00 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate Monthly Mortgage Payment [lower higher monthly payment. monthly payment is required. Term Rate 3.0% 30 years $ 4.22 25 years 20 years 15 years $ 4.74 $ 5.55 $ 6.91 3.5 4.49 5.01 5.80 7.15 4.0 4.77 5.28 6.06 7.40 4.5 5.07 5.56 6.33 7.65 5.0 5.37 5.85 6.60 7.91 5.5 5.68 6.14 6.88 8.17 6.0 6.00 6.44 7.16 8.44 6.5 6.32 6.75 7.46 8.71 7.0 6.65 7.07 7.75 8.99 7.5 6.99 7.39 8.06 9.27 8.0 7.34 7.72 8.36 9.56
Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? How do I round time value factor and final answers to 2 decimal places? What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?
Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the table. Calculator answers may be slightly different. (Round your answer to the nearest cent.) Amount Rate Time(Years) AnnualTaxes AnnualInsurance $183,000 5 1 2 % 15 $3000 $900
Based on Exhibit 9.9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round tin value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a $120,000, 15-year loan at 5 percent b. $86,000, 30-year loan at 4.5 percent. c$105,000, 20-year loan at 4 percent d-1. Longer mortgage terms mean a d-2 For increase in mortgage rate Monthly Mortgage Payment monthly payment monthly payment is required
Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at an annual interest rate of 4.24%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? _____ (b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) _____$ (c) If the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change?
The following formula is used for figuring out a monthly home mortgage payment: 7(12t) r Lr1+ 12 M = 12t 12 1+ 12 -1 Where: L = the loan amount in dollars the annual interest rate expressed as decimal t = the number of years of the loan M= the monthly payment in dollars r = You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year mortgage at 6.75% annual interest rate for the cost of the house after they receive a 10% down payment. A. Determine the loan amount? B. How much their monthly payment will be? C. At the end of the 30-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $275,599.00 house really cost the couple? D. How much interest will they have paid? E. How many of her monthly payment go toward the interest? F. What percent increase over the cost of the home does this interest represent? G. Redo and re-answer all questions, but this time for 15 years? Do analysis…
Using this table as needed, calculate the required information for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) Numberof $1,000sFinanced TableFactor(in $) MonthlyPayment(in $) TotalInterest(in $) $162,300 5.25% 15 ? $ ? $ ? $ ?
Complete the following table, which shows the monthly payments on a $100,000, 30-year mortgage at the interest rates shown. Use this information to answer the following questions. (Round your answers to the nearest cent.) Amount ofMortgage ($) InterestRate (%) MonthlyPayment ($) 100,000 3 421.60 100,000 4 100,000 5 100,000 6 100,000 7 100,000 8 733.76 (a) What is the difference in monthly payments between a $100,000, 30-year mortgage secured at 7%/year and one secured at 3%/year? $ (b) Use the table to calculate the monthly mortgage payments on a $170,000 mortgage at 4%/year over 30 years. $ Use the table to calculate the monthly mortgage payments on a $40,000 mortgage at 4%/year over 30 years.
Please show how to solve this problem using excel and please show the spreadsheet formulas. Interest-only mortgage with monthly payments and loan amount: $56,000; Term: 15 years; Annual interest rate: 7.5% What is the total payment in the 180th month? What is the outstanding balance at the end of 10 years (120 months)? What is the total interest payment during the entire loan term (180 months)?
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: $
If you borrow $8,637 and are required to pay back the loan in five equal annual installments of $2,700, what is the interest rate associated with the loan? Use Appendix D or a financial calculator to solve this problem. (Round your answer to the nearest whole percent.) Interest rate %