What is the effective annual rate​ (EAR) of a mortgage that is advertised at ​% ​(APR) over the next twenty years and paid with ​payments? What is the effective annual rate​ (EAR) of the mortgage at 10.5​% APR with monthly ​payments?

Q: Consider the following fixed-rate level-payment mortgage pass-through security: Total principal…

A: Scheduled monthly mortgage The weighted average rate is rate paid borrower Where r is the rate of…

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: The effective annual profit rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: Given the effective annual profit rate of 9.38%, we can calculate the monthly profit rate using the…

Q: nsider a 30 year mortgage for $310873 at an annual interest rate of 3.5%. What is the remaining…

A: Mortgage loans are common in buying homes because are easy to get and easy to pay be monthly…

Q: Determine the monthly principal and interest payment for a 20​-year mortgage when the amount…

A: The monthly payment can be computed using the payment per thousand dollars corresponding to the…

Q: A $230,000 mortgage has a stated annual rate of 4.5% on a 30 year loan.  What is the monthly…

A: Compound = Monthly = 12Principal Amount = p = $230,000Rate of Return = r = 4.5 / 12 = 0.375%Time = t…

Q: A loan is offered with monthly payments and a 17.00 percent APR. What’s the loan’s effective annual…

A: Given; Nominal interest rate (r): 17% Time period (n): 12 months

Q: A mortgage of $27,728.00 is to be repaid by making payments of $1680.00 at the end of every three…

A: The series of payments discussed here is a form of annuity wherein an equal payment is made each…

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: If you owned a property that you expect will require a new $2,500 roof at the end of five years from…

A: Kindly note that the first 2 questions cannot be solved as the information such as the loan amount…

Q: Compute the interest paid on a 30-year mortgage for $216,427 if the annual interest rate is 3.8

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: Consider a 30-year mortgage for $181,420 at an annual interest rate of 3.1%. What is the remaining…

A: The time period of the mortgage is 30 years the amount of  mortgage is $181,420 The annual interest…

Q: What is the effective annual rate (EAR) of the mortgage at 6% APR with monthly payments?

A: Effective Annual Rate is 6.17%

Q: Suppose you have a 30 year mortgage for 221,564 with quarterly payments of 5,552 what is the total…

A: Interest can be computed as follows  = Total Payment - Principle Amount of Mortgage Total payment is…

Q: .   What is the effective annual rate​ (EAR) of a mortgage that is advertised at 12​% ​(APR) over…

A: We have to use weekly compounding and find effective interest rate.

Q: In addition to the UFMIP (up-front mortgage insurance premium), the owner-occupant borrower who…

A: Federal Home administration (FHA) imposes an additional insurance clause to mortgage loans in Loan…

Q: What will be the monthly payment on a home mortgage of $75,000 at 12% interest, to be amortized over…

A: Loan amount (P) = $75,000 Interest rate = 0.12 Monthly interest rate (i) = 0.01 (i.e. 0.12 / 12)…

Q: an mortgage is $500000. it is to be paid off in exactly 25 years with end of month payment of $2400.…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Calculate the modified duration of a 30-year mortgage with level annual payments of principal and…

A: Please note that in the question given, there is no mention of the amount of loan. This is only…

Q: Rounded to dollars and cents, what will be the monthly payment on a $75,000 30-year home mortgage at…

A: The PMT function can be used to derive the number of monthly payments that may be required to…

Q: Calculate the modified duration of a 30-year mortgage with level annual payments of principal and…

A: Mortgage Term: 30 yearsAnnual Interest Rate (Coupon Rate): 9%Yield to Maturity (Market Interest…

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: Consider a standard mortgage (360 months) with monthly payments and a nominal rate of 5.70%. What…

A: Here, Nominal Interest Rate is 5.70% Therefore, Monthly Interest Rate will be: =5.70%12=0.475% Loan…

Q: A price level adjusted mortgage (PLAM) is made with the following terms:   Amount = $96,000…

A: b. To calculate the loan balance at the end of the fifth year, we need to calculate the outstanding…

Q: EAR What is the effective annual rate (EAR) of a mortgage that is advertised at 12% (APR) over the…

A: To calculate the effective annual rate we will use the below formula   Effective annual rate =…

Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: If an adjustable-rate 30-year mortgage for $120,000 starts at 4.0 percent and increases to 5.5…

A: Companies frequently have to make choices about financial transactions, initiatives, and investments…

Q: Consider a $100,000, 30-year, 7% interest mortgage loan with monthly payments. What is the interest…

A: Interest payments:Interest payments refer to the amount of money that is paid by a borrower to a…

Q: A $230,000 mortgage has a stated annual rate of 4.5% on a 30 year loan.  How much interest is paid…

A: Mortgage amount = $230,000Interest rate = 4.5%Period = 30 years

Q: A 30-year mortgage requires payments of $2,850.28 at the end of each month. If interest is 5.39%…

A: Compound = Monthly = 12Time = t = 30 * 12 = 360Payment = p = $2850.28Interest Rate = r = 5.39 / 12 %

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Simple interest is the type of interest that is calculated on the original amount of the loan and…

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: A 25 year mortgage requires payments of $3443.75 at the end of each month. If interest 5.84%…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: Given the following information, calculate the balloon payment for a partially amortized mortgage:…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: EAR. What is the effective annual rate (EAR) of a mortgage that is advertised at 7% (APR) over the…

A: The effective annual rate takes into the effect of compounding whereas the APR is just a stated…

Q: How many monthly payments remain to be paid on an 8% mortgage with a 30-year amortization and…

A: Net present worth (NPV) is the difference between the ongoing worth of cash inflows and the ongoing…

Q: What is the effective annual rate​ (EAR) of a mortgage that is advertised at 9.75​% ​(APR) over the…

A: EAR is the actual annual cost of interest on a loan. it  takes into account the compounding of…

Q: Which of the following statements regarding a 30-year monthly payment amortized mortgage with a…

A: Amortization of mortgage loan: Amortization of mortgage loan is a process in which the loan amount…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.