Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:EAR. What is the effective annual rate (EAR) of a mortgage that is advertised at 6% (APR) over the next twenty years and paid with monthly payments?
What is the effective annual rate (EAR) of the mortgage at 6% APR with monthly payments?
% (Round to two decimal places.)
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- If a mortgage has monthly payments of $1,315, a life of 30 years, and a rate of 4.25 percent per year, what is the mortgage amount? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Mortgage amountarrow_forwardConsider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. ..... a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)arrow_forwardDetermine the monthly principal and interest payment for a 15-year mortgage when the amount financed is $85,000 and the annual percentage rate (APR) is 7.0%arrow_forward
- In terms of an effective annual interest rate, how can the interest payment be rewritten?arrow_forwardWhat is the monthly payment (beginning) of a 30 year, 4.8%, $200,000 mortgage?arrow_forwardA mortgage of $176,000 is to be repaid by making payments of $1010 at the end of each month. If interest is 5.74% per annum compounded annually, what is the term of the mortgage? State your answer in years and months (from 0 to 11 months). The term of the mortgage is year(s) and month(s).arrow_forward
- A 30-year mortgage requires payments of $3,541.80 at the end of each month. If interest is 2.71% compounded annually, a) what was the mortgage principal? $ b) what would be the amount of interest charged? $arrow_forwardWhat is the total interest paid on this mortgage over the 10 year term?arrow_forwardDetermine the monthly principal and interest payment for a 20-year mortgage when the amount financed is $285,000 and the annual percentage rate (APR) is 4.0%. The monthly principal and interest payment is $arrow_forward
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