Heather recently purchased a $650,000.00 house in Barrie, Ontario. She puts a 25% down deposit and borrows the rest from a bank that charges 2.25% compounded monthly for 25 years, so what is her monthly mortgage payment (round to the nearest cent)? O a. $2,126.14 O b. $2,133.54 O c. $2,142.40 O d. $2,129.10

Heather recently purchased a $650,000.00 house in Barrie, Ontario. She puts a 25% down deposit and borrows the rest from a bank that charges 2.25% compounded monthly for 25 years, so what is her monthly mortgage payment (round to the nearest cent)? O a. $2,126.14 O b. $2,133.54 O c. $2,142.40 O d. $2,129.10

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Similar questions

Arthur wishes to have 80,000 in her bank account. How much suould she deposit in a bank account that pays 8% compounded quarterly so that after 6 years and 5 months, she can have her desired money? Choices are: 31, 889.7541648, 110.24584 and 50,000
Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual com- pound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years. b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part a using 8 percent and 10 percent. c. What conclusions can you draw about the relationship among interest rates, time, and future sums from the calculations you just did? use EXCEL to work this out and show the formula!
Bella deposits $6400 in a savings account at a bank that offers interest of 1.8% on such accounts. What is the value of the money in her savings account in two year's time? Select one: a. $6,630.4 b. $6,632.5 C. $8,911 O d. d. $6,505.2 <
Lyndsay puts $1,000.00 into a savings account that pays 3% interest, compounded annually. As the interest is earned, she leaves it in her account. At the end of the third year, what is her balance? a. $1,030.00 b. $1,090.00 c. $1,095.95 d. $1,092.73
1. Find the simple interest earned on a deposit of $5,750 that is left on deposit for 3.5 years and earns anthe annual interest rate of 4.5%.2. Three years after investing $15,000, a retired couple received a check for $3,375 in simple interest. Findthe annual interest rate their money earned during that time.3. For their newborn child, parents deposit $10,000 in a college account that pays 8% interest,compounded annually. How much will be in the account on the child’s 17th birthday?4. If the parents in part c invested $10,000 in an account paying 8%, compounded quarterly, how muchmore money would they have after 17 years?5. What sum must be deposited today at 18% per year compounded monthly if the goal is to a compoundamount of $50, 000 six years from today? How much interest will be earned during this period?
Sandy just received her annual bank statement. Exactly one year ago, she deposited $10,000 in a savings account. Today, her balance is $10,509.45. Sandy's savings account interest is compounded quarterly. Using simple interest as a guideline, Sandy received an annualized interest rate of_percent. a. 5, b. 5.5, c. 6, d. 6.5
A year ago your Aunt Sheri deposited $ 1 comma 000 in a bank account. One year later, there was $ 1 comma 090 in Aunt Sheri's account. What APR, compounded monthly, was the bank providing Aunt Sheri?The APR, compounded monthly, is closest to:
You have collected $8,342 Your banker states that if you deposit these funds in her institution they will accumulate to $16,786 In twelve years. What is the implied rate that she is paying on this deposit? 50% 12% 5% 6%
↑ A woman deposits $8000 at the end of each year for 13 years in an account paying 8% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 7% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 13 years by using her brother-in-law's bank? (a) She will have a total of $on deposit. (Simplify your answer. Round to the nearest cent as needed.) CUL
Karen Gaines invested $12,000 in a money market account with an interest rate of 1.25% compounded semiannually. Five years later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the account? .... Karen withdrew $ (Round to the nearest cent as needed.)
Jada deposited an amount of money in a bank 8 years ago. If the bank had been paying interest at the rate of 4%/year compounded daily (assume a 365-day year) and she has $21,000 on deposit today, what was her initial deposit? (Round your answer to the nearest cent.) $ Need Help? Talk to a Tutor
Cristy borrowed $4,800 from a family friend 2½ years ago at 7% compounded annually for the first year and 8% compounded semi-annually thereafter. She made a payment 1½ years into the loan for $2980. How much should Cristy pay today to clear her loan? Select one: a. $5384.26 b. $2554.13 c. none d. $5777.30