Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Chris has taken a 20-year, $250,000 mortgage on her house at an interest rate of 6% per year. What is the remaining balance of
the mortgage after the fifth monthly payment?
Multiple Choice
$247,267
$211,690
$250,000
Transcribed Image Text:Chris has taken a 20-year, $250,000 mortgage on her house at an interest rate of 6% per year. What is the remaining balance of
the mortgage after the fifth monthly payment?
Multiple Choice
$247,267
$211,690
$250,000
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- 15- What is the semi-annual payment on a $126,000 mortgage loan, repayable over 24 years, if the interest rate is 12% p.a., compounded semi-annually? a. $7951 b. $623 c. $491 d. $8051arrow_forwardProblem 5 A couple has a $129,000, 20-year mortgage at 7.2% compounded monthly.(a) Find the monthly payment.(b) Find the total interest paid Please give full solutionarrow_forward6 % interest rate for 15 years is 8.43857arrow_forward
- Question 28: Assume that the compounding frequency of the provided APR is monthlyarrow_forwardThe difference between the monthly payments on a $120,000 mortgage at 6 ½% and at 8% for 25 years is: Multiple Choice $81.12 $151.02 $115.93 $91.12arrow_forwardQuestion 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12arrow_forward
- Question Completion Status: O $255,243,325.72 QUESTION 2 Ann found an apartment that costs $800,000 to buy. She will make a $100,000 down payment and get a mortgage for $700,000. The mortgage will be a fully amortizing 30-year fixed rate mortgage at 4.25% with monthly payments and monthly compounding. The following 6 questions will use this information above (round all answers 2 decimal places. do not inclue commas or dollar signs in responses. enter percentages as whole numbers i.e. 4.952% should be entered as 4.95) a) What is Ann's Loan to Value when she gets the Loan? 87.5 b) What will Ann's monthly mortgage payment be? c) What will be the balance on Ann's mortgage after the 7th monthly payment d) How many dollars is Ann paying in interest in her 8th monthly mortgage payment? e) How many dollars of Ann's 8th monthly mortgage payment will be principal? f) What is the total sum of all cash flows that Ann will pay the bank over the entire life of the loan, assuming she keeps the loan…arrow_forwardQ-4: Fay borrowed $5000 at an interest rate of 3% compounded quarterly. On the first, second, and third anniversaries of the loan, she made payments of $1500. What payment made on the fourth anniversary will extinguish the debt?arrow_forward
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