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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.)

Transcribed Image Text:Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed
Monthly Payments
(Necessary to amortize a loan of $1,000)
Interest
Rate (%)
5
Years
10
Years
15
20
Years
25
Years
30
Years
35
Years
40
Years
Years
3.50
18.19
9.89
7.15
5.80
5.01
4.49
4.13
3.87
3.75
18.30
10.01
7.27
5.93
5.14
4.63
4.28
4.03
4.00
18.42
10.12
7.40
6.06
5.28
4.77
4.43
4.18
4.25
18.53
10.24
7.52
6.19
5.42
4.92
4.58
4.34
6.33
6.46
5.07
5.22
4.50
18.64
10.36
7.65
5.56
4.73
4.50
4.75
18.76
10.48
7.78
5.70
4.89
4.66
5.00
5.25
18.87
10.61
7.91
6.60
5.85
5.37
5.05
4.82
18.99
10.73
8.04
6.74
5.99
5.52
5.21
4.99
5.50
19.10
10.85
8.17
6.88
6.14
5.68
5.37
5.16
5.75
19.22
10.98
8.30
7.02
6.29
5.84
5.54
5.33
6.00
19.33
11.10
8.44
7.16
6.44
6.00
5.70
5.50
6.25
19.45
11.23
8.57
7.31
6.60
6.16
5.87
5.68
6.50
19.57
11.35
8.71
7.46
6.75
6.32
6.04
5.85
6.49
6.21
6.39
6.75
19.68
11.48
8.85
7.6
6.91
6.03
7.00
19.80
11.61
8.99
7.75
7.07
6.65
6.21
7.25
19.92
11.74
9.13
7.90
8.06
7.23
6.82
6.56
6.40
7.50
20.04
11.87
9.27
7.39
6.99
6.74
6.58
7.75
20.16
12.00
9.41
8.21
7.55
7.16
6.92
6.77
8.00
20.28
12.13
9.56
8.36
7.72
7.34
7.10
6.95
8.25
8.50
20.40
12.27
9.70
8.52
7.88
7.51
7.28
7.14
20.52
12.40
9.85
8.68
8.05
7.69
7.47
7.33
8.75
20.64
12.53
9.99
8.84
8.22
7.87
7.65
7.52
9.00
20.76
12.67
10.14
9.00
8.39
8.05
7.84
7.71
9.25
20.88
12.80
10.29
9.16
8.56
8.23
8.03
7.91
9.50
21.00
12.94
10.44
9.32
8.74
8.41
8.22
8.10
8.30
9.75
21.12
13.08
10.59
9.49
8.91
8.59
8.41
10.00
21.25
13.22
10.75
9.65
9.09
8.78
8.60
8.49
10.25
21.37
13.35
10.90
9.82
9.26
8.96
8.79
8.69
8.98
9.18
10.50
21.49
13.49
11.05
9.98
9.44
9.15
8.89
10.75
21.62
13.63
11.21
10.15
9.62
9.33
9.08
11.00
21.74
13.78
11.37
10.32
9.80
9.52
9.37
9.28
11.25
21.87
13.92
11.52
10.49
9.98
9.71
9.56
9.48
11.50
21.99
14.06
11.68
10.66
10.16
9.90
9.76
9.68
11.75
22.12
14.20
11.84
10.84
10.35
10.09
9.96
9.88
12.00
22.24
14.35
12.00
11.01
10.53
10.29
10.16
10.08
10.29
10.49
11.19
12.25
12.50
22.37
14.49
12.16
10.72
10.48
10.35
22.50
14.64
12.33
11.36
10.9
10.67
10.55
12.75
22.63
14.78
12.49
11.54
11.09
10.87
10.75
10.69
13.00
22.75
14.93
12.65
11.72
11.28
11.06
10.95
10.90

Transcribed Image Text:As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest
cent.)
Term
Annual
Amount
Interest
Monthly
Annual
Monthly
PITI
of Loan
Property
Tax
Financed
Rate
PI
Insurance
(years)
$210,000
7.50%
$6,573
$2,156
$|
25
Submit Answer
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