6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 Archie buys a house for $189 900, with a down payment of 10%. The bank has offered Archie a 20-year mortgage for the remainder of the cost, at 4% compounded semi-annually, with payments every two weeks. Jake and Archie both move after 5 years. Archie's house has depreciated by 2% per year. Compare Jake's and Archie's housing costs. per month.

6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 Archie buys a house for $189 900, with a down payment of 10%. The bank has offered Archie a 20-year mortgage for the remainder of the cost, at 4% compounded semi-annually, with payments every two weeks. Jake and Archie both move after 5 years. Archie's house has depreciated by 2% per year. Compare Jake's and Archie's housing costs. per month.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Ken just purchased new furniture for his house at a cost of $15,800. The loan calls for weekly payments for the next 5 years at an annual interest rate of 10 63 percent. How much are his weekly payments? Multiple Choice O $78.40 O $81.45 $60.77 $82.32 $81.02
Da Feng is looking to refinance his home because rates have gone down since he purchased the house 5 years ago. He started with a 30-year fixed-rate mortgage of $276,000 at an annual rate of 7.30%. He has to make monthly payments. He can now get a 25-year fixed-rate mortgage at an annual rate of 4.30% on the remaining balance of his initial mortgage. This loan also requires monthly payments. In order to re-finance, Da Feng will need to pay closing costs of $3,700. These costs are out of pocket and cannot be rolled into the new mortgage. How much will refinancing save Da Feng? (i.e. What is the NPV of the refinancing decision?) $181,311.02 您不应该选择此项 Your calculation was based on a wrong balance on the existing mortgage. O $85,659.68 $86,861.44 $83,161.44
Seven years ago, lan purchased a $265,000 home with a 30-year mortgage at 3.5%. Having recently lost his job, he can no longer afford to make his mortgage paymentsIf he currently owes $225,368.29 and his lender offered to extend the loan by 7 years at %, what will be his new mortgage payment?
Darlene Ramirez bought a home for $140,000. She put 20% down and financed the rest with a 20 year 3.5% mortgage. The total of her monthly payments for a year are: Multiple Choice $649.55 $7,794.60 $9,743.28 $9,329.61
Jim and Jane just married and want to purchase a house. They have $80,000 for a down payment and want to purchase a $380,000 house. If they borrow the balance for 15 years at 5.5%, how much are their monthly payments?
Conor is comparing two potential housing options. Conor plans to stay in the home for 4 years, after which he plans to move again. Conor earns 12% annually on his other investments. He determines the following information about each option: OPTION 1: Purchase a home • Purchase a $270,000 home with a 30-year fixed mortgage • Loan amount = $270,000 (100% financing) • Annual mortgage interest rate = 6.00% Monthly mortgage payments = $1,618.79 • Additional monthly costs (insurance, taxes, maintenance) = $350.00 • Real estate growth rate = 5% annually .
Max wants to buy a house, to put on his lot, to hold his giant cheese refrigerator. Max buys a$2,000,000 house and makes a $500,000 down payment. Themortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after thepurchase of the house.a) How much are Max’s monthly payments?b) How much of the 300the payment goes to the principal and how much goes to interest? TVM FORMULA
wally bee purchased a home for $600,000 with a $150,000 down oayment. he financed the remainder with a 6% mortgage for 30 years. wallys bank has offered to lower the 6% interest rate on his 30 year loan to 5.50%. if wally will pay 1 7/8 points. what will the points cost wally?
Willie just bought a home and financed his purchase with a $1,000,000 6% 20- year mortgage. (a) What is Willie's monthly mortgage payment? (b) What will be the balance on Willie's mortgage after 12 years? 1. How did you get the monthly mortgage payment of $7,164.31? 2. How did you get the balance of $545,169.90 after 12 years?
Please help me correctly. Theresa and Raul purchased a house 10 years ago for $220,000. They made a down payment of 20% of the purchase price and secured a 30 year conventional home mortgage at 4.5% per year compounded monthly on the unpaid balance. The house is now worth $280,000. How much equity do Teresa and Raul have in their house now?.
III. Assume compound interest is used to solve the following problems. 1. Stanley borrowed $4500.00 from his credit union to do some home renovations. The loan has an annual interest rate of 5.75% and an amortization period of 3 years. a. What is Stanley's monthly payment? b. Calculate the total amount he will pay over 3 years. G Calculate the finance charge on the loan. 2. Adele wants to buy a used car that costs $2900.00. She has $1100.00 saved up for a down payment. a. How much will Adele have to borrow to buy the car? b. She can get a loan at 6.50% per annum with an amortization period of 2 years. What will be her monthly payment? c. What will be the total she pays for the loan? d. How much will the car cost? 3. Calculate the monthly payment, the total amount paid, and the finance charge for the following loans: a $2000.00 at 8.00% per annum for 3 years; b. $10 000.00 at 6.25% per annum for 5 years; and c. $1500.00 at 3.75% per annum for 2 years. 4. Harley used her credit card to…
Jack Bond plans to move into a rented flat in Melville in 8 month’s time. The owner of the flat, Ms Moneypenny, requires a deposit of R20 000 to be paid upon occupation of the flat to protect her against breakages. Luckily, Jack inherited R100 000 a couple of years ago, and he still has R18 424,38 left. YOU ARE REQUIRED TO: calculate the effective annual interest rate at which Jack should invest his money to enable him to pay the required deposit eight months from today.

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