The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually. Monthly payments are based on a 25-year amortization. Suppose a $3,000 prepayment is made at the end of the third year. a. How much will the amortization period be shortened?

Q: A mortgage of $177,000 is to be repaid by making payments of $1064 at the end of each month. If…

A: The amount of the mortgage is $177,000 Monthly payments are $1064 The interest rate is 3.18%…

Q: A mortgage of $106,000 is to be repaid by making payments of $1154 at the end of each month. If…

A: Mortgage value refers to an amount that is being borrowed by the borrower from the lender at…

Q: A mortgage of $550,000 is to be amortized by end-of-month payments over a 25- year period. The…

A: Total Mortgage = $550,000 Total duration = 25 year Interest rate = 8% compounded semiannually

Q: or a 25-year mortgage of $200, 000 at 5(1)/(2)% interest, one additional payment of $5, 000 is paid…

A: Mortgage amount=$200000Interest rate=5.5%Period=25 years

Q: (a) Determine the number of rounded payments required to repay the mortgage. ​(b) Determine the size…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each…

A: Nominal Interest Rate: It represents the rate of interest that does not take into consideration the…

Q: 0,000 mortgage was amortized over 20 years by monthly repayments. The interest rate on the mortgage…

A: Loans are paid by the monthly payment and these are fixed payments and these carry the payment for…

Q: Listen A $130,000 mortgage at 2.5% compounded semi-annually with a 20 year amortization requires…

A: Step 1First, we need to calculate the effective monthly rate.Then emi and then balance at end of 4th…

Q: A 25-year, $305,000 mortgage at 2.30% compounded quarterly was settled with semi-annual payments.…

A: Installment amount is the amount of periodic payments a borrower pays to the lender in order to pay…

Q: The balance on a mortgage was $41,000 and an interest rate of 3.75% compounded semi-annually was…

A: Monthly payments are calculated by present value of annuity function in excel i.e. PMT. Effective…

Q: The interest rate for the first three years of an $87,500 mortgage is 4.4% compounded semiannually.…

A:

Q: A mortgage of $166,000 is to be repaid by making payments of $1061 at the end of each month. If…

A: A mortgage is a covered loan that is taken out for the purchase of a property with the property…

Q: A borrower obtains a partially amortizing constant payment mortgage loan for $75,000 at 24 percent…

A: Balloon Payment  Under Balloon payment a large amount of sum is to be paid at the end of loan term…

Q: A mortgage of $119,000 is to be repaid by making payments of $945 at the end of each month. If…

A:

Q: Give typing answer with explanation and conclusion  The interest rate for the first three years of…

A: Mortgage amount= $87000 Rate – 4.4% Compounding – semi annually Payment – monthly Prepayment - $4000…

Q: The interest ratç for the first three years of an $90,000 mortgage loan is 8.4% compounded…

A: It is assumed that the monthly payments made initially are at a rate of 8.4% compounded…

Q: A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 8.6%…

A: An amortized loan is one that has planned, monthly payments that are applied to both the interest…

Q: a. What is the size of the quarterly payments? (Round to the nearest cent)   b. How much will the…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: 2) A $30 000.00 mortgage is amortized by monthly payments over twenty years and is renewable after…

A: We first calculate the effective monthly interest and use the pmt function in Excel to calculate the…

Q: A mortgage of ​$161000 is to be repaid by making payments of ​$1191 at the end of each month. if…

A: We need to use NPER formula in excel to calculate term of mortgage. The formula is…

Q: You entered into a 2-year mortgage for $500,000. The mortgage has a 9 percent interest rate…

A: Loan repayment is the process of reimbursement of loan periodically by the borrower of the loan to…

Q: The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually.…

A: Given, The mortgage is $95000 Rate is 7.2% compounded annually Term is 25 years.

Q: A $40,000 mortgage taken out on June 1 is to be repaid by monthly payments rounded up to the nearest…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: A ​$96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1%…

A: Mortgage means amount which is borrowed by external sources to meet financial obligation or purchase…

Q: A $305,000 mortgage at 5.00% compounded semi-annually was settled with monthly payments of $2,300.…

A: Mortgage amount is $305,000 Interest rate is 5% compounded semi annually Monthly Payment is $2300…

Q: a. What will be the principal balance at the end of the four-year term? (Do not round intermediate…

A: Loan amount = $ 89,000 Interest Rate = 8.3% Monthly Interest Rate = 8.3% /12 = 0.692% Number of…

Q: Consider a mortgage on a house valued at $480,000 with an interest rate of 6% compounded…

A: Mortgage loan: These loans are issued with the nominal rate that is compounded semi-annually,…

Q: The monthly payments for the first three-year term of a $440,000 mortgage loan were based on a…

A: Mortgage is a value which is borrowed from other sources like banks and this amount is repaid later…

Q: A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12…

A: The concept of the time value of money acknowledges that the value of money today differs from its…

Q: (a) The size of the monthly payment is $ (Round the final answer to the nearest cent as needed.…

A: Mortgage loans are very common in buying of homes and these loans make buying of homes easier and…

Q: The maturity of the balloon loan is 5 years, amortization period is 30 years, loan amount is $85,000…

A:

Q: a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly…

A: Information Provided: Loan amount = $40,100 Interest rate = 5.50% compounded semi-annually Years =…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.