Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for 30 years with a 3.2% rate monthly with 2 points. If the loan is paid off after 12 years, what is the true rate?
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- 2) Whiskers wants to buy a $400,000 house. She plans to pay $80,000 down and make monthly payments for 20 years. If the loan has an interest rate of 6% monthly with 3 points, what is the true interest rate?arrow_forwardIf Blitzen wants to buy a $120,000 house. Blitzen is going to pay $40,000 down and make monthly payments for 30 years. The rate is 3.1% monthly with 2 points. If the loan is paid off after 12 years, what is the true rate?arrow_forwardMaria and John have found a house that has a selling price of $300,000. They will make a 20% down payment. It's a 2.5% interest with a 15-year mortgage. What is the monthly payment? Show the work.arrow_forward
- Julia has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is currently paying $1.200 a month on the loan, at this rate how many years will it take to repay the loan?arrow_forwardMarie and Danny Would like to buy a house for $220,000. The down payment for the mortgage is 30% of the price of the house. To earn the down payment, they invest $2500 a quarter at 6.2% compounded quarterly. They take a 30-year home mortgage for the rest of the price of the house at 7.3% compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $2000 per month. How much is the down payment? How long will it take Marie and Danny to earn the down payment if they invest $2500 a quarter at 6.2% compounded quarterly? How much is the loan for the mortgage? What is the regular monthly payment? What is the unpaid balance when they begin paying the $2000? How many payments of $2000 will it take to pay off the loan? Give the answer correct to wo decimal places. How much interest will they save by paying the loan this way? Use your answer from #6 to find.arrow_forwardWhiskers wants to buy a $600,000 house. She plans to pay $200,000 down and make monthly payments for 20 years. If the loan has an interest rate of 5% monthly with 3 points, what is the true interest rate?arrow_forward
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