Larry makes Linda a loan with zero payments and negative amortization at a semi annual compounding (j2) rate of 3%. While no payments are due until the end of the term after 20 years, interest accrues monthly. The initial loan amount is $100,000.  (a) What will be the monthly interest rate (i12)?            (b) What will be the outstanding balance after 20 years?

If Bobby takes out a mortgage for 30 years at an interest rate of 4% and his monthly repayments are $835.48, what is the loan principal (that is, the balance of the loan at drawdown)? Give your answer to the nearest ten dollars. Do not include commas or the dollar sign in your answer.

The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of 6.55%. (a) How much greater is their mortgage payment if the term is 20 years rather than 30 years?(b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan?

An interest-only mortgage is made for $94,000 at 6 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization.   Required: a. What will the monthly payments be? b. What will be the loan balance after five years? c. If the loan is repaid after five years, what will be the yield to the lender? d. Instead of being repaid after five years, what will be the yield if the loan is repaid after 10 years?

Lian took a $85,000 loan at 2.91% compounded monthly and decided to make end of month payments of $2,392. 1) How many payments will Lian have to make to amortize this loan? (rounded to the next higher whole number) 2) What will the size of his final payment be? $ (enter a positive value)

David obtained a fully amortizing loan 8 years ago for $12,0000 at 8% for 30 years. Mortgage rates have dropped in such a manner so as to provide a loan for 22 years at 6.5%. There is no prepayment penalty on the mortgage balance of the original loan, but 2 points will be charged on the new loan and other closing cost will be $3000. All payments are monthly.       How much does David need to borrow if he decides to borrow only outstanding loan balance?   Is refinancing a good option if David decides to repay the full amount of loan in 5 more years?   How would your answer for part 2a change if David decides to borrow outstanding loan balance and other refinancing costs?   Would your answer for part 2b change if David decides to keep the loan for full term of the loan?

am. 08.

(Loan amortization) To buy a new house, you must borrow $135,000. To do this, you take out a $135,000, 25-year, 9 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 9 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payments will be $ (Round to the nearest cent.)

You have a loan outstanding. It requires making nine annual payments of ​$7,000 each at the end of the next nine years. Your bank has offered to allow you to skip making the next eight payments in lieu of making one large payment at the end of the​ loan's term in nine years. If the interest rate on the loan is 8%​, what final payment will the bank require you to make so that it is indifferent to the two forms of​ payment?

You take out a 30-year mortgage (360 months) with a face value of $200,000 and a stated annual rate of 6.0 percent. As you can calculate, your required monthly payment is $1.199.10. However, with each payment, you send your lender an extra $250.00, which directly reduces the mortgage balance each month. What is the mortgage balance after 42 months? Enter your answer to the nearest cent, with no punctuation other than a decimal. For example, if your answer is $28,542.19, enter "28542.19". Note that Canvas will delete trailing zeros, if entered.