to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a 5% down payment. The buyer i [-(-9) fered two mortgage options: 20-year fixed at 7% or 30-year fixed at 7%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? se PMT= Find the monthly payment for the 20-year option. $0 (Round to the nearest dollar as needed.)

to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a 5% down payment. The buyer i [-(-9) fered two mortgage options: 20-year fixed at 7% or 30-year fixed at 7%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? se PMT= Find the monthly payment for the 20-year option. $0 (Round to the nearest dollar as needed.)

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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Many mortgage company allow youto "buy down" your interest rate of your loan by buying points. A point is equal to 1% of your mortgage amount (or $1,000 for every $100,000). You're essentially paying some interest up front in exchange for a lower interest rate over the life of your loan. Find the following payments and total cost (including points) of a $170,000.00 that is borrowed for 30 years with a) 6, % compounded monthly with no points $ The total cost would be $ 1 b) 6– % compounded monthly with 1 point $ 4. The total cost would be $ c) 6% compounded monthly with 2 points $ The total cost would be $
Assume you need a $87,000.00 loan for a home. Compute the monthly payment for each option. Assume that the loans are fixed rate and that closing costs are the same in both cases. Round to the nearest penny.Option 1: a 30 year-loan at an APR of 7.25%The monthly payment for Option 1 would be $.Option 2: a 15 year-loan at an APR of 6.5%The monthly payment for Option 2 would be $
Use PMT = to detemine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $200,000 20-year - nt 1+ fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $E (Do not round until the final answer, Then round to the nearest cent as ccess aUbra Success Resou More
You have just purchased a new warehouse. To finance the purchase, you've arranged fora 38-year mortgage loan for 70 percent of the $3,380,000 purchase price. The monthlypayment on this loan will be $17,100. a. What is the APR on this loan? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.)b. What is the EAR on this loan? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.)
6. You plan to buy a house that sells for $250,000. You plan to put 10% down and finance the rest. You are exploring the following financing options: i. 30-yr mortgage with a stated annual interest of 6.5% ii. 15-yr mortgage with a stated annual interest of 6%. You plan to pay off the loan by making equal monthly payments. What would be your monthly payment if you take the 30-yr mortgage? How much (total) interest would you pay over the life of the loan? $1422.15, $286,974 b. What would be your monthly payment if you take the 15-yr mortgage? How much (total) interest would you pay over the life of the loan? $1898.68, $116,762.01 a.
You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage loan for 75 percent of the $3,000,000 purchase price. The monthly payment on this loan will be $17,100. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Use PMT= 1 P PA nt] to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $70,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 6.5% or 30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? Find the monthly payment for the 20-year option. $ (Round to the nearest dollar as needed.)
The 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)
Suppose your gross monthly income is $5,300 and your current monthly payments are $625. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)
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.
Find the monthly payment for the 15- year option.
You are in the market to buy a home. You plan on borrowing $312,627 from the bank. Interest rates are currently 3% for a 30 year mortgage (hypothetically, not actually). How much money will you pay in interest over the lifetime of the loan? Round to the nearest whole number.

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