EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
The price of a home is $180,000. The bank requires a 5% down payment and one point
at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at
8%. (Round all answers to the nearest cent)
a. Find the required down payment.
b. Find the amount of the mortgage.
c. How much must be paid for one point at closing?
d. Find the monthly payment.
e. Find the total cost of interest over 30 years.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Similar questions
- Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $230,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year foxed-rate mortgage at 6.5%. Complete parts (a) through (e) below. a. Find the required down payment. $ 46,000 b. Find the amount of the mortgage.arrow_forwardThe price of a condominium is $127,000. The bank requires a 5% down payment and one point at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at 6.5%. a. Find the required down payment. b. Find the amount of the mortgage. c. How much most be paid for the one point at closing? d. Find the monthly payment (excluding escrowed taxes and insurance).arrow_forwardThe price of a condominium is $187,000. The bank requires a 5% down payment and one point at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at 6.5%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PMT = a. Find the required down payment. $9350 b. Find the amount of the mortgage. $177650 c. How much must be paid for the one point at closing? $1776 (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). More Enter your answer in each of the answer boxes. 11:12 PM O Type here to search 81°F Mostly cloudy 22 99+ 6/30/2021 DELL F3 F4 FS F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete కలnn Home Num $4 %24 & Backspace 8. R T K Enter (凸)arrow_forward
- to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $173,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is Time Remaining: 01:37:36 Use PMT= financed with a 30-year fixed-rate mortgage at 8%. Complete parts (a) through (e) below. a. Find the required down payment. b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? $ (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). $(Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. $(Round to the nearest dollar as needed.).arrow_forwardThe price of a condominium is $86,000. The bank requires a 5% down payment and one point at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at 10%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. P in PMT = - nt 1- + a. Find the required down payment. $ b. Find the amount of the mortgage. $ c. How much must be paid for the one point at closing? $ (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). $ (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. (Round to the nearest dollar as needed.)arrow_forwardUse an online loan calculator to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $148,000. The bank requires a 20% down payment and three points at the time of closing The cost of the home is financed with a 30-year fixed rate mortgage at 85% Complete parts (a) through (e) below -CHEDD a. Find the required down payment $0 b. Find the amount of the mortgage How much must be paid for the three points at closing? (Round to the nearest dolar as needed) d. Find the monthly payment (excluding escrowed taxes and insurance) (Round to the nearest dollar as needed) e. Find the total cost of interest over 30 years (Round to the nearest dolar as needed)arrow_forward
- The price of a home is $210,000. The bank requires a 15% down payment and one point at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 6.5%. ( Round to the nearst dollar) a. Find the required down payment. b. Find the amount of the mortgage. c. Find the monthly payment for the loan. d. Find the total cost of interest over 30 years.arrow_forwardAnswer this question below... The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is financed with a 30-year fixed rate mortgage at 7.5%. Find the required down payment. Find the amount of the mortgage. Find the monthly payment (excluding escrowed taxes and insurance). Find the total interest paid over 30 years. Use this formula to find the monthly payments:arrow_forwardYou want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan at 5.5% for the rest. The bank requires 2 points at closing.(a) How much is the loan amount going to be?(b) How much are the closing costs?(c) What will your monthly payments be?(d) How much will you pay in interest over the life of the loan?arrow_forward
- You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?arrow_forwardSuppose that you decide to borrow $14,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.5% Installment Loan B: five-year loan at 6.4% a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) c. Compare the monthly payments and the total interest for the two loans. Determine which loan is more economical. Choose the correct answer below. OA. The five-year loan at 6.4% is more economical. OB. The three-year loan at 5.5% is more economical.arrow_forwardPlease show working. please answer a and b (a) You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 5% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $ _________ EAR: __________ % (b) What's the future value of a 9%, 5-year ordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Value of an Ordinary Annuity: $ Future Value of an Annuity Due: $arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTPfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning