Suppose you buy a home and finance $285,000 at $2,243.17 per month for 30 years. What is the amount of interest paid? (Round your answer to the nearest cent
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Suppose you buy a home and finance $285,000 at $2,243.17 per month for 30 years. What is the amount of interest paid? (Round your answer to the nearest cent
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Suppose you buy a home and finance $275,000 at $2,273.17 per month for 30 years. What is the amount of interest paid? (Round your answer to the nearest cent.)
- Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the purchase price and take a 25 year mortgage for the balance. a. What is your down payment? b. What is your mortgage amount? c. What is the total interest charged over the life of the loan if your monthly payment is P2,200? Solve manually in a paper.Suppose you want to have $300,000 for retirement in 30 years. Your account earns 5% interest. a ) How much would you need to deposit in the account each month? $ b) How much interest will you earn?Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest compounded annually. Round your answers to the nearest cent.a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $
- Suppose that you borrowed $300,000 to buy a house. a. You pay 3.37% interest rate for a 30-year loan. Create an amortization table with a spreadsheet, which clearly shows the monthly payment and how much you would pay in total interest over the whole loan. monthly payment = $ 1,325.46 total interest paid = $ 177,165.05Suppose you want to have $400,000 for retirement in 35 years. Your account earns 4% interest. Round your answers to the nearest cent.a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $Suppose that 12 years ago you bought a home for $120,000, paying 20% as a down payment, and financing the rest at 6.1% interest for 30 years. How much money did you pay as your down payment? How much money was your existing mortgage (loan) for? What is your current monthly payment on your existing mortgage? Note: Carry at least 4 decimal places during calculations, but round your final answer to the nearest cent. How much total interest will you pay over the life of the existing loan? This year (12 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $76,166 left to pay on your loan. Your house is now valued at $185,000. How much of the original loan have you paid off? (i.e, How much have you reduced the loan balance by?) How much money have you paid to the loan company so far (over the last 12 years)? How much interest have you paid…
- Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $ esB. Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the purchase price and take a 25 year mortgage for the balance. a. What is your down payment? b. What is your mortgage amount? c. What is the total interest charged over the life of the loan if your monthly payment is P2,200? Solve manually.Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…