A couple plans to purchase a house. The bank requires a 20% down payment on the $470,000 house. The couple will finance the rest of the cost with a fixed- rate mortgage at 3% annual interest with monthly payments over 30 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas (a) Find the required down payment. $0 (b) Find the amount of the mortgage. $0 (c) Find the monthly payment. $

A couple plans to purchase a house. The bank requires a 20% down payment on the $470,000 house. The couple will finance the rest of the cost with a fixed- rate mortgage at 3% annual interest with monthly payments over 30 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas (a) Find the required down payment. $0 (b) Find the amount of the mortgage. $0 (c) Find the monthly payment. $

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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Please answer only question B, because I sent already question A in a separate question on the site. Thanks! Mrs. R. would like to buy a mobile home. To this end, she takes out a loan of 80,000 euros on 01.01.2021. amount of 80,000 euros. The loan agreement stipulates an annual interest rate of 4.5%. a) Ms. R. agrees with the bank to repay the debt plus interest in nine equal amounts at the end of each year.at the end of each year. The first payment is to be made on 31.12.2022.1. how high is the annuity to be paid at the end of each year from 31.12.2022?2. indicate the repayment schedule line for the 7th year after the debt is taken on.3. instead of annuities, Mrs. R. is considering making quarterly payments of the same amount in advance in 2022, 2023, 2024, . . . , 2030 to be made. How high is the quarterly payment? B) Ms. R. agrees with the bank to repay the debt plus interest with annuities in the amount of 15,000 euros at the end of each year. The first payment is to be made on…
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Your brother is considering the purchase of a home rather than renewing the lease on his two-bedroom apartment. He is currently paying $800 per month for rent. He has asked you to help decide what sort of home he might be able to afford with his current monthly rent payment. His bank offers first-time home buyers (with good credit) a 25-year mortgage at a fixed rate of 8.95%. Use this information to answer the questions below. Express your answers rounded correctly to the nearest cent! () If the cost of insurance and property taxes is about $290 per month in the neighborhood where he'd like to live, what monthly mortgage payment can he afford? (Refer to your class notes for the formula.) Payment = $ 650 (i) Use Excel's P function to determine how much your sister could afford to borrow for a home. Amount to Borrow $ 629.9
a) Harris Dhillon have just purchased a new house. To finance the purchase, a bank in the area offer 30-year mortgage loan for RM300,000 purchased price. The monthly payment for this loan will be RM1,500. The monthly interest is 0.5 percent. Compute the annual percentage rate (APR) and effective annual return (EAR) on this loan. b) Dia Rezeki is 32-year-old and is saving for her retirement. She is planning on making contribution to her retirement account. The retirement account will earn o return of 8% a year. If each contribution she makes is RM5,500, compute the amount of money will be in the retirement account 35 year from now.
A young newly married couple wish to purchase a unit house in a remote area priced at $190,000. They want to borrow the entire amount and repay this amount in full plus interest over the next 20 years. You can offer them a mortgage for the full amount at an interest rate of 17% (sounds like extortion to me) and calls for equal annual instalment payments at the end of each of the 20 years. Required: (a) Calculate the amount of the annual payment? (b) Create and complete the amortization
Bha
不 Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from a finance company (at 2.78% add on interest for 5 years) or she can borrow from credit union (60 monthly payments of $03 78 each). Find the APR for each loan using a TVM solver, and decide which one is Claire's better choice The APR for the finance company loan is (Type an integer or decimal rounded to the nearest hundredth as needed)
You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make annual fixed deposits to achieve your goal. If the interest rate is 2.5%, how much should be deposited each time? Hint use the Financial Function “PMT” to solve for the payment, and PV will be zero. You owe $25,000 to your parents. You promise to make 10 annual payments of $3,000 to settle your debt. What interest rate are your parents charging (estimated up to 2 decimal places), if you make the 10 annual payments beginning one year from now? Hint use the Financial Function “RATE”. Note if you need help use the “Help on this function” feature. This help will include an example for you to follow. You are offered an investment that will pay $14,000 per year for 17 years, beginning one year from now. If you feel that the appropriate discount rate is 3.4%, what is the investment worth to you today? Your grandparents offered you some money via the following options. Assuming an annual interest…
9. Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for 30 years at 6%. a. What is Jason’s monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment $ b. What is the total interest cost of the loan? (Use the amortization worksheet on the financial calculator.) Total interest cost $
Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $74,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 4.75% $337.51 $42,053.00 b.25 Years, 5.25% c. 25 Years, 5.50% $363.54 $49,862.00 d. 25 Years, 5.75% e. What is the savings in interest cost between 4.75% and 5.75%? Note: Round your answer to the nearest dollar amount. Interest cost: f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest? Note: Use 360 days a year. Round your answer to the nearest dollar amount. Interest difference: TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year…
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You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you insist on paying them interest. The agreement is that they will lend you $8000.00 at a simple interest rate of 2% per year. Once the interest amounts to $480, you agree to pay them back the $8000 plus the $480 interest. After how many months will you have to pay them back? Please answer step by step

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