Three years ago, the Amouzegars purchased a house and took out a mortgage of $850,000 from the CIBC bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 3-year term. The bank calculated their monthly payment should be $3,932. How much would the final payment be assuming the same interest rate over the 25 years? $3,732.48 O -$190.89 $3,723.85 $3,741.11 O $4,122.89

Three years ago, the Amouzegars purchased a house and took out a mortgage of $850,000 from the CIBC bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 3-year term. The bank calculated their monthly payment should be $3,932. How much would the final payment be assuming the same interest rate over the 25 years? $3,732.48 O -$190.89 $3,723.85 $3,741.11 O $4,122.89

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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three years ago , the Kennedys purchased a house and took out a mortgage of $ 1,000,000 from the HSBC bank. They amortized the mortgage over 25 years at 2.79\% compounded semi - annually for a 3 year term. The bank calculated their monthly payment should be $ 4,626. How much would the final payment be assuming the same interest rate over the 25 years ?
Five years ago, the Muncasters purchased a house and took out a mortgage of $600,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 5- year term. The bank calculated their monthly payment should be $2,776. What percentage of the mortgage have they paid off after making 3 years of payments? 91.32% 26.02% 6.96% 8.68% 2.09% 4
Three years ago the Biggs purchased a house for $675,000. They made a down payment of 20% and took out a mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. e) After making three years of payments, they made a lump-sum payment to reduce the balance owing to $460,000. How much was the lump-sum payment? Express your answer in 2 decimal places and do not enter "$" sign.
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