Gerry and Alex decide they will buy a two-bedroom garden-suite, with a $925,000 mortgage from West Coast Credit (25 year amortization, 3.4% compounded semi-annually, 5 year term). West Coast Credit has a policy of rounding monthly payments up to the next $100 dollar. How much will Adam and Betty still owe at the end of their 5 year fixed term?

Gerry and Alex decide they will buy a two-bedroom garden-suite, with a $925,000 mortgage from West Coast Credit (25 year amortization, 3.4% compounded semi-annually, 5 year term). West Coast Credit has a policy of rounding monthly payments up to the next $100 dollar. How much will Adam and Betty still owe at the end of their 5 year fixed term?

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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When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.2% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. How long will it take to pay off this new loan if they pay $1200 each month?
Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken. Assuming that the couple has enough savings for the down payment, what is the cost of the house that they want to purchase? a. 494,068.50 b. 2,470,342.49 c. 750,000 Od. 617,585.62
Bridgette can afford to make monthly payments of $800 towards a mortgage, and wants to fully own her home within 30 years. Given an interest rate of 10.5% on her mortgage, what's the highest value of a home she can afford?
Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the remainder for 15 years at the APR of 8.2%, compounded monthly. a) How large are the monthly payments? $ b) What will be their loan balance right after they have made their 156th payment? $ c) How much interest will they pay during the 13th year of the loan? $ d) If they were to increase their montly payments by $120, how long would it take to pay off the loan? Give your answer in whole months.
Patty purchases a $240,000 house. She pays $40,000 down and takes out a 25 year mortgage with monthly payments, at an interest rate of 12% interest compounded monthly. How much money will Patty have to pay each month?
Clark and Lana take a 30 you're home mortgage of $122,000 at 7.9%, compounded monthly. They make their regular monthly payments for five years, then decide to pay $1000 per month. (A) find their regular monthly payment round your answer to the nearest cent (b)Find the unpaid balance when they begin paying the $1000 round your answer to the nearest cent (c)How many payments of $1000 will it take to pay off the loan (round your answer to two decimal places) (d)How much interest will they saved by paying the loan using the number of payments from parts (c)? (Round your answer to the nearest cent)
Arthur is planning on buying a house and needs to take out mortgage for $200,000 . He has two choices a 30 year with monthly payments of $1,468 and a 15 years with monthly payments of 1,854 . Arthur want to pay the Lowest interest rate possible What is interest rate on each mortgage and which mortgage should he pick? He changes his mind and want to pay the smallest amount of total interest. What are the total interest charges for each mortgage and which mortgage should he pick now ?
Cindy and Rick purchased a home for $145,000 and financed it with a 30-year fixed-rate loan at 6.25% annual interest. If they put a 20% down payment on the house, what would be their monthly payment for principal and interest?
Ben and Carla Covington plan to buy a condominium. They will obtain a $224,000, 30-year mortgage at 7.0 percent. Their annual property taxes are expected to be $2,000. Property insurance is $520 a year, and the condo association fee is $240 a month. Based on these items, determine the total monthly housing payment for the Covingtons. Use Exhibit 7-7. (Round your intermediate calculations and final answer to 2 decimal places.) Total monthly housing payment
Emma plans to loan $1,000 to her friend, who will pay a simple interest rate of 5.8% every year for the loan. If no payments are made and no further borrowing occurs between them for 13 years, then how much money will Emma' s friend owe her? $1,061.36 $1,754.00 $2,081.20 $158.00 Now, assume that Emma's friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 5.8% compounded annually, all other things being equal, how much money will Emma's friend owe her in 13 years? $2,081.20 $1,058.00 $120.71 $ 1,754.00 Emma has another investment option in the market that pays 5.8% nominal interest, but it's compounded quarterly. Keeping everything else constant, how much money will Emma have in 13 years if she invests $1,000 in this fund? $158.00 $129.72 $2,114.01 $1,059.27
Bill and Kim Johnson are purchasing a house for $252,000. Their Bank requires them to pay a 20% down payment. The current mortgage rate is 10%, and they are required to pay one point at the time of closing. Determine the total amount Bill and Kim will pay for their house, including principal, interest, down payment, and points (do not include taxes and homeowners' insurance) for the following lengths of their mortgage. a) 10 years b) 20 years c) 30 years
To help buy her new house, Donna is taking out a $271,000 mortgage loan for 30 years at 4.1% annual interest. Her monthly payment for this loan is $1309.47. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is in of a year. Round your answers to the nearest cent.

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