A family takes a $275,000 20 year mortage at3.50% annually compounded monthly.a. Compute their monthly payments.o. Immediately after the 121st payment, thisfamily receives a $55,000 from an inheritance.They decide to put this entire amount againstthe amount they owe. Given that the bankexpects them to maintain the same monthlypayments as in 4a, compute the length oftime (months) it will take to pay the laon off.The same family above realizes that theinheritance income will not materialize (sothey are back to 4a). Instead, immediatelyafter their 121st payment they decide to re-fianance at the lower rate of 15% per yearcompounded monthly. They decide to stickwith the same number of remaing monthlypayments. What will be their new monthlypayment?please draw the cash flow diagrams, andshow all calculations!!!!

Here, Mortgage Amount is $275,000 Interest Rate (r) is 3.5% Time Period (n) is 20 years Compounding…

Answered: A family takes a $275,000 20 year…

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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A family takes a S275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their monthly payments. b. Immediately after the 121 payment, this family receives a $55,000 from an inheritance. They decide to put this entire amount against the amount they owe. Given that the bank expects them to maintain the same monthly payments as in 4a, compute the length of time (months) it will take to pay the laon off.
Jim and Joan Miller are borrowing $120,000 at 6.5% per annum compounded monthly for 30 years to purchase a home. Their monthly payment is determined to be $758.48. You need to present Jim and Joan with a report detailing the following: A recursive formula for their balance after each monthly payment has been made. A determination of Jim and Joan's balance after the first payment. Use a spreadsheet or graphing utility to create a table showing their balance after each monthly payment. Determine when the balance will be below $75,000. Determine when the balance will be paid off. Determine the interest expense when the loan is paid.
jenna mcintosh made end of month deposits of $895 into a retirement fund at 7.50% compounded monthly for 15 years. after 15 years the balance in the fund was converted into a retirement income fund from which jenna withdrew 6225 at the end of every three months at 6.75% compounded semi annually. how long can jenna make withdrawls from the retirement income fund? What is the accumulated value in jenna's retirement fund after 15 years?
At the time of her grandsons birth, a grandmother deposits 3000 in an account that pays 6.5% compounded monthly. What will be the value of the account at the child’s 21st birthday, assuming that no other deposits or withdrawals are made during this period
A couple is planning to finance its three-year-old son's university education. Money can be deposited at 9% compounded quarterly. What quarterly deposit must be made from the son's 3rd birthday to his 18th birthday to provide $10000 on each birthday from the 18th to the 21st? (Note that the first deposit is made three months after the 3rd birthday and the last deposit is made on the date of the first withdrawal.) (keep 2 decimal places) Answer:
In order to accumulate enough money for their child's college tuition, a couple deposits $4, 000 every three months (quarterly) into an account paying 0.94% annual interest (compounded quarterly) show work. a) How much will the couple have altogether in 15years?
Gert needs to borrow $415,000 to purchase a home. He is able to obtain a thirty year mortage with a fixed-rate of 3.0%. What is his monthly payment? For numerical entries, please 1. do NOT enter commas 2. do NOT enter the dollar symbol: $ 3. DO enter the percent symbol when it is needed: % 4. enter dollar amounts to the nearest cent, for example: 12345.67 Please complete the TVM Framework table to compute Gert's monthly payment on this mortgage: Time Value of Money (TVM) Framework i PV PMT с Please complete the first rows of the amortization table: Amortization Table INTEREST LA n n Principal Balance Excess Payment FV type CPT Principal Remaining If Gert started this mortgage at the beginning of December, how much interest would he pay during its first calendar year?
A couple who borrow $100,000 for 30 years at 8.4%, compounded monthly, must make monthly payments of $761.84. (Round your answers to the nearest cent.) (a) Find their unpaid balance after 1 year. (b) During that first year, how much interest do they pay?
Monica has recently inherited $9600, which she wants to deposit into an IRA account. She has determined that her two best bets are an account that compounds monthly at an annual rate of 3.7%(Account 1) and an account that compounds quarterly at an annual rate of 4.7%(Account 2).Step 2 of 2 : How much would Monica's balance be from Account 2 over 2.7years? Round to two decimal places.
The Dexter’s decided to purchase a new home. The purchase price of their new home was $345,990. The Dexter’s had a down payment of 20% due to the equity in their first home. They financed the rest at a fixed rate of 3.85% for 15 years. What is their monthly payment?
A man deposits $10,000 at the beginning of each year for 15 years in an account paying 6% compounded annually. He then puts the total amount on deposit in another account paying 7% compounded semiannually for another 11 years. Find the final amount on deposit after the entire 26-year period. He will have a final amount of $ after the entire 26-year period. (Simplify your answer. Round to the nearest cent as needed.)

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