Mr. Smith is purchasing a $160000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 25-year mortgage at a rate of 8 %. Find (1) the monthly payment: $ () the total amount of interest paid: $ b) a 15-year mortgage at a rate of 8%. Find (1) The monthly payment, $ (i) the total amount of interest paid: $

Mr. Smith is purchasing a $160000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 25-year mortgage at a rate of 8 %. Find (1) the monthly payment: $ () the total amount of interest paid: $ b) a 15-year mortgage at a rate of 8%. Find (1) The monthly payment, $ (i) the total amount of interest paid: $

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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Robert plans to take out a mortgage for a house he just bought for $1 million. Bank A is offering a 25-year mortgage at an annual percentage rate (APR), compounded monthly, of 4.5% and a 25% down payment. Bank B is offering a 30-year mortgage at an APR, compounded monthly, of 4.8% and a 10% down payment. (a) Calculate the monthly payment under Bank A's terms. (b) Calculate the monthly payment under Bank B's terms.
The Fritzes are buying a house that sells for $173,000. The bank is requiring a minimum down payment of 10%. To obtain a 30-year mortgage at 11.5% interest, they must pay 2 points at the time of closing a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 10% down payment. c) Find the cost of 2 points on the mortgage. a) The required down payment is $ b) The mortgage on the property is S c) The cost of the 2 points on the mortgage is $ (Round to the nearest dollar as needed.)
Marry are buying her first house for $220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-year mortgage with a 7% nominal interest rate and monthly payments. What are the equal monthly payments you must make? Select one: a. $1,110$ b. $1,976 c. $1,264 d. 1,513
You have decided to become a homeowner with the purchase of a condominium in a newly redeveloped part of town. The condo costs $300,000 and you have a down payment of $90,000, so you will be carrying a mortgage of $210,000. If you take on a 5-year mortgage with a 25-year amortization period at a rate of 4.5% (compounded semiannually), with monthly payments, determine the following: a. Your monthly payment. b. The total interest and total principal paid over the first 5 years.
The Nicols are buying a house selling for $435,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 7% interest rate, the Nicols must pay 1.5 points at the time of closing. a) What is the amount of the mortgage? b) What is the cost of the 1.5 points? a) The amount of the mortgage is S b) The cost of the 1.5 points on the mortgage is $
The Nicols are buying a house selling for $235,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 5% interest rate, the Nicols must pay 3.5 points at the time of closing. a) What is the amount of the mortgage? b) What is the cost of the 3.5 points?
K Erin took out a 15-year mortgage with an annual interest rate of 6% to purchase a house for $220,000 with a down payment of $20,000. Find the amount of the monthly payment needed to amortize this loan. The amount of the monthly payment needed to amortize this loan is $1687.71 (Round to the nearest cent as needed.)
Aziza is taking out a $1475 mortgage with a 30-year, fixed rate, fully amortizing loan and with 7.0% interest. What will be Aziza's monthly payments? Round your answer to the nearest cent (e.g. if your answer is $1,000.567, enter 1000.57),
The Hills obtain a 30-year, $144,000 conventional mortgage at a 4.5% rate on a house selling for $180,000. Their monthly mortgage payment, including principal and interest, is $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years. The total amount is $ (Round to the nearest cent as needed.)
Tom wishes to purchase a property that's been valued at $400,000. He has 15% of this amount available as a cash deposit and will require a mortgage for the remaining amount. The bank offers him a 15-year mortgage at 2.5% interest. Calculate the total interest Tom will pay over the lifetime of the loan. Round your answer to the nearest dollar. Do not rould until you have calculated the final answer.
Peter and Julia decide on a 15 year mortgage valued at $165,000. They are doing some financial comparisons of two similar loan options. Loan A: 4.5% annual interest rate resulting in monthly payments of $1262.24 Loan B: 4% annual interest rate resulting in monthly payments of $1220.49 What is the total payback for each loan? (Assume only the minimum payment is made each month.) How much more interest will Peter and Julia pay if they choose Loan A? Provide your answer below: Loan A =$ Loan B =$ They will pay $ more interest if they choose Loan A.

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