Vipula De Silva has just bought a boat by taking an unconventional 13 year, $82,884 mortgage from the bank. The interest rate is 7.5%. The mortgage is to be paid off by payments made every year starting next year. How much does Vipula De Silva have to pay every year to repay the mortgage? a. 10,200 b. 7,140 c. 9,180 d. 8,160
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- Noor is buying a home with a $200,000 mortgage using a 5.5 percent, 30-year loan. How much of the first month's payment will go toward the principal if the payment per $1000 on this loan is $5.6779? O a. $917 O b. $219 O c. $0 O d. $538Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%, compounded twice a year. What is the Effective Annual Interest Rate? a. 7.8698% b. 8.0% O c. 8.4% O d. 8.16% What is the monthly payment on the mortgage? a. $3,776.51 O b. $3,816.07 O c. 3,912.23 O d. $3,666.84Suppose you take a $268,188 30-year fixed-rate mortgage at 5.86%, 4 discount points, monthly payments. At the end of year 3 you inherit $15,193 from your now-favorite aunt. You decide to apply this $15,193 to the principal balance of your loan. What is your net interest savings over the life of the loan, assuming the loan is held to its maturity?
- Armita takes out a 3 year mortgage for $1,075,000 at an interest rate of i(26) = 8.875%. The amortization period is 20 years and she will make bi-weekly payments. What is the outstanding balance at the end of 1 year? a. $1,054,602.46 b. $1,044,056.44 c. $970,234.27 d. $1,022,964.39 e. $991,326.317. Joan Tanaka borrows $80,000 at 14 percent interest toward the purchase of a vacation home. Her mortgage is for 25 years. a. How much will her annual payments be? (home payments are usually on a monthly basis, but we shall do our analysis on an annual basis for ease of computation.) b. How much interest will she pay over the life of the loan?5. Jenna received a 15 year loan of $375,000 to purchase a house. The interest rate on the loan was 5.10% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 3? c. By how much will the amortization period shorten if Jenna makes an extra payment of $30,000 at the end of year 3? Answer in years and in months.
- 15 years ago, Tammy borrowed $350,000 to buy a house. She has a 30 year, 10% fixed rate mortgage. She made the 180th payment today. Payments are made monthly. Given that she can refinance at 3.8% p.a., with a new mortgage loan with 15-year maturity, what is the new monthly payment? 1914.69 1502.69 2085.69 1677.69 1757.69Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume fixed interest rates are used through out this question. Sophie plans to loan $700 to her friend who will pay a simple interest rate of 98% every year for tle loan. If no payment are made and no futher borrowing occurs between them for 11 years, then how much money will sophie's friend owe her? a. 168.60 b. 775.32 c. 1454.60 d. 1957.60 Now assume that sophia's friend volunteers to pay the compound intereST INSTEAD OF SIMPLE INTEREST FOR HER LOAN. if interest is accured at 9.8% compounded annually, all other things being equal, how much money will sophia's friend owe her in 11 years? a. 1454.60 b. 768.60 c. 191.84 d. 1957.60 Sophia has another investment option in the market taht pays 9.8% nominal interesrt, but its compounded quarterly. keeping everything else constant, how much money will sophia have in 11 years if she invests $700 in this fund. a.…A couple take a 30-year home mortgage of $120,000 at 7.8% compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1000 per month. a. Find their regular monthly payment. b. Findtheunpaidbalancewhentheybeginpayingthe$1000. c. How many payments of $1000 will it take to pay off the loan? Give the answer correct to one decimal place. d. Use your answer to part(c)to find how much interest they save by paying the loan this way.
- Seema takes out a 5 year mortgage for $950,000 at an interest rate of i(52) = 4.875%. The amortization period is 20 years and she will make weekly payments. After 3 years the rate changes to i(52) = 4.500%. What is the outstanding balance at the end of the term (5 years) of the mortgage (taking into account the change in rates!)? a. $784,671.52 b. $706,204.36 c. $761,131.37 d. $753,284.66 e. $745,437.942. Sue borrows $600,000 at 3.85%. The mortgage is for 30 years. A. What is the monthly payment? B. How much interest will be paid over the life of the loan? C. Recalculate the total interest rate if the rate changes from 3.85% to 6.85 %. What is the total interest paid over the life of the 6.85% loan?Larry Davis borrows $87,000 at 11 percent interest toward the purchase of a home. His mortgage is for 25 years. a. If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.) Annual payments b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total interest