Ocean Spray has applied for a mortgage of $205,000. Interest is computed at 5.5 percent compounded semiannually. Themortgage will be paid off over 25 years. (Use a Financial calculator to arrive at the answers. Do not round intermediatecalculations and round the final answers to 2 decimal places.)a. Calculate Ocean's monthly payment.Monthly payment$b. Calculate Ocean's weekly payment.Weekly paymentc. Calculate Ocean's biweekly (every 2nd week) payment.Biweekly payment

The question is asked to determine the monthly payment, weekly payment, and biweekly payment. We…

Answered: Ocean Spray has applied for a mortgage…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jesse received a loan of $36,000 at 5.75% coumpounded quarterly. She had to make payments at the end of every quarter for a period of 5 years to settle the loan. a. Calculate the size of payments Round to the nearest cent b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places Payment Number Payment Interest Portions Principal Portion Principal Balance
On September 1, the home mortgage balance was $262,000 for the home owned by Kim Thompson. The interest rate for the loan is 8 percent. Assuming that Kim makes the September monthly mortgage payment of $2620 , calculate the following: (a) The amount of interest included in the September payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Kim makes this monthly mortgage payment.
Kavra Corporation purchased a building by signing a $150,000 long-term mortgage with monthly payments of $2,000. The mortgage carries an interest rate of 12 percent. 1. Prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt, and the unpaid balance for the first three months. (Round to the nearest dollar.)2. Prepare the journal entries to record the purchase and the first two monthly payments.
A mortgage of $656,000 is amortized over 25 years by making end-of-month payments of $4,120. Your calculator must be set to 2 decimals before doing any calculations that are going to involve Amortization. a.) What is the annual rate of interest compounded semi-annually? (Correct to exactly 4 decimal places.) Once you have seen what this is, to 4 decimal places, set your calculator back to 2 decimal places before using the AMORT function. b.) What is the value of the final (partial) payment? The final payment required to make the outstanding balance equal exactly zero. (Use the BAII+: Do not calculate this by hand.) c.) What is the total interest cost for the debt over 25 years (300 payments)? (Use the BAII+: Do not calculate this by hand.)
Vincent received a loan of $28,000 at 4.25% compounded monthly. She had to make payments at the end of every month for a period of 5 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Complete the partial amortization schedule, rounding the answers to the nearest cent. Payment Number Payment K 0 1 2 0 0.00 0 0 Total :: :: $0.00 $0.00 $0.00 $0.00 $0.00 Interest Portion Principal Portion $0.00 $0.00 :: :: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Principal Balance $28,000.00 $0.00 $0.00 :: $0.00 $0.00 0.00
Joan Messineo borrowed $44,000 at a 6 percent annual interest rate to be repaid over three years. The loan is amortized into three equal annual end-of-year payments.a. Calculate the annual end-of-year loan payment.b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments.c. Explain why the interest portion of each payment declines with the passage of time.
You purchase a house in East Lansing, MI. You calculate the amount financed to be $203,315. You obtain a 15-year mortgage with an interest rate of 3.8% and have calculated a monthly payment of $1,062. For the following, round your answer to the nearest cent. The payment on the principle in the first month is $450.41 $403.56 $418.17 $643.83 $489.31 OOOO
Jason Stein from Topeka, Kansas, borrows $1,500 (including interest) for four years (48 months) at an interest rate of 7% per year. The loan uses the discount method for determining the amount of interest. How much of the loan amount ($1,500) consists of interest? How much of the loan is actually given directly to Jason? What is the monthly payment (rounded to the nearest penny), assuming 48 monthly payments?
Dante has a mortgage of $700,000 through the Meridian Bank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 4.6% compounded monthly for a term of 2 years, amortized over 20 years. At the end of the 2-year term, Dante will renew the mortgage for another 2-year term at a new, lower interest rate of 3.5% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? C/Y = P/Y = I/Y = P1 = % 2) What is the balance when the mortgage is renewed? P/Y = I/Y = PV = $ PMT = $ (enter the rounded value into the calculator) % P2= 3) What will be the new end of month payments after the mortgage is renewed? C/Y = PV = $ N = PMT= $ FV = $ BAL = $ Enter a positive value. N = FV = $
On September 1, the home mortgage balance was $238,000 for the home owned by Susan Gonzalez. The interest rate for the loan is 6 percent. Assuming that Susan makes the September monthly mortgage payment of $2856, calculate the following: (a) The amount of interest included in the September payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Susan makes this monthly mortgage payment. (a) Interest amount: (b) Principal reduction: (c) New balance: 2 H D 4 A
A family takes out a mortgage for $324,400.00 from the local bank. The loan is for 30 years of monthly payments at a 3.48% APR (monthly compounding). What will the family's balance be on the mortgage after 10.00 years? Submit Answer format: Currency: Round to: 2 decimal places.

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