Qd 137. AssumptionPurchase Price:350,000Loan-value: 80%interest rate:9%Term of loan:30 yearsMonthly payment:What is the monthly payment?Interest paid in the 2nd month?% paid after 6 years?Amount of loan paid after 6 years?Amount you still owe after 6 years?

Loans are paid by the monthly payments and these monthly payments carry the payment for interest and…

Answered: Assumption Purchase Price:350,000…

Business

Finance

Assumption Purchase Price:350,000 Loan-value: 80% interest rate:9% Term of loan:30 years

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

Qd 137.

Assumption
Purchase Price:350,000
Loan-value: 80%
interest rate:9%
Term of loan:30 years
Monthly payment:
What is the monthly payment?
Interest paid in the 2nd month?
% paid after 6 years?
Amount of loan paid after 6 years?
Amount you still owe after 6 years?

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