9.1 A 20-year, $470,000 mortgage at 3.20% compounded semi-annually is repaid with monthly payments. a. What is the size of the monthly payments? b. Find the balance of the mortgage at the end of 6 years? c. By how much did the amortization period shorten by if the monthly payments are increased by $275 at the end of year six(HOW MANY YEARS AND MONTHS? Kindly explain with excel details Thank you

9.1 A 20-year, $470,000 mortgage at 3.20% compounded semi-annually is repaid with monthly payments. a. What is the size of the monthly payments? b. Find the balance of the mortgage at the end of 6 years? c. By how much did the amortization period shorten by if the monthly payments are increased by $275 at the end of year six(HOW MANY YEARS AND MONTHS? Kindly explain with excel details Thank you

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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OLA#9.1: A 30-year, $450,000 mortgage at 3.30% compounded annually is repaid with monthly payments. a. What is the size of the monthly payments? b. Find the balance of the mortgage at the end of 7 years? c. By how much did the amortization period shorten by if the monthly payments are increased by $125 at the end of year seven?
2. A mortgage has the following terms: Amount: $750,000 Rate: 6.25% Amortization (Years): 30 Term (Years): 20 Please determine the following: A. What is the Monthly Payment? B. In preparing an Income Statement, what is the Interest Expense for years 1-5? C. What is the Principal Balance at the end of year 6? D. What is the value of the loan at the expiration? E. If rates remain constant (flat), what would the benefit be to refinance this loan after year 10?
A mortgage has the following terms: Amount: $750,000 Rate: 6.25% Amortization (Years): 30 Term (Years): 20 Please determine the following: What is the Monthly Payment? In preparing an Income Statement, what is the Interest Expense for years 1 – 5? What is the Principal Balance at the end of year 6? What is the value of the loan at the expiration? If rates remain constant (flat), what would the benefit be to refinance this loan after year 10? do all the questions 1-5 and show the formulas in excel and show how you got it
Consider a 30-year home mortgage of $100,000 at 6% per year. What is the monthly payment? Use Theorem 1 as attached to make an amortization schedule of the first 6 months: Month (k) Principal P(k) Interest I(k) Balance due B(k) 1 2 3 4 5 6 where P(k) is the amount paid to the principal in the k’th payment, I(k) is the amount paid to interest in the k’th payment, B(k) is the balance due after the k’th payment.
6. A $130,000 mortgage was amortized over 10 years by monthly repayments. The interest rate on the mortgage was fixed at 5.60% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. b. Using the payment from part a., calculate the size of the final payment. Kindly keep all the decimals for all the procedures, DO NOT ROUND
pp. Subject :- Accounting A 30-year fully amortizing mortgage loan was made 10 years ago for $89,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $12,800. Required: a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?
Give typing answer with explanation and conclusion The interest rate for the first three years of an $87000 mortgage is 4.4% compounded semiannually. Monthly payments are based on a 20-year amortization. if a $4000 prepayment is made at the end of the 16th month: a. how much will the amortization period be shortened? b. what will be the principal balance at the end of the three-year term?
Please show how to solve a. b. and c. using the information below and Excel. Interest-only mortgage with monthly payments and loan amount: $56,000; Term: 15 years; Annual interest rate: 7.5% a. What is the total payment in the 180th month? b. What is the outstanding balance at the end of 10 years (120 months)? c. What is the total interest payment during the entire loan term (180 months)?
A $305,000 mortgage at 5.00% compounded semi-annually was settled with monthly payments of $2,300. a. What is the amortization period for the mortgage? b. How much will the amortization period be shortened by if bi-weekly payments of $1,200 are made instead of the monthly payments?
A 21-year mortgage is amortized by making payments of $3052.61 at the end of every three months. If interest is 8.45% compounded annually, and you want to know what was the original mortgage balance? Find p (the equivalent rate of Interest per payment period) Select one: a. 0.015075125 b. 0.0055556 O c. 0.024329 d. 0.0204868 e. 0.0078846
Q3. A 25-year, $340,000 mortgage at 1.60% compounded semi-annually was settled with quarterly payments. a. What is the size of the quarterly payments? b. How much will the amortization period be shortened by if weekly payments of $650 are made instead of the quarterly payments?
2. A fully amortizing CPM mortgage loan is made for $100,000 at 6 percent interest for a 30 year term. Determine payments for each of the periods below if interest accrues: a. Monthly b. Quarterly c. Annually d. Weekly POP 3. A fully amortizing mortgage is made for $100,000 at 6.5% interest. If the monthly payments are $1000 per month, then when will the loan be repaid? 4. A partially amortizing mortgage loan is made for $60,000 for a term of 10 years. The borrower and lender agree that a balance of $20,000 will remain and be repaid as a lump sum at that If the interest rate is 7%, what must monthly payments be over the 10 year term? b. If the borrower chooses to repay the loan after five years instead of at the end of year 10, then what will the loan balance be at the end of year 5? 5. A fully amortizing CAM loan is made for $125,000 at 11 percent interest for 20 years. a. What will be the monthly payments and remaining loan balances for the first six months? What would monthly…