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

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: 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: Your monthly mortgage payment on a house is GHC59.39. It is a 30- year mortgage at 7.8% compounded…

A: A study that proves that the future worth of the money is lower than its current value due to…

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: Over the life of a fixed payment amortized loan, such as a conventional mortgage, the proportion of…

A: Conventional loans are the types of home loan which are not secured by the government securities. On…

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: mortgage for a condominium had a principal balance of $44,100 that had to be mortized over the…

A:

Q: -year mortgage is amortized by making paym nths. If interest is 8.45% compounded annually tgage…

A: Mortgage loans make home buying quite easy and convenient and mortgage loans are paid by equal…

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: What would be the monthly payment on a 20-year, $140,000 mortgage loan if the rate was 3.5%, monthly…

A: A written agreement through which a lender gets the right to take the property that is put as a…

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: With regard to mortgages, how is the monthly payment including principal and interest categorized as…

A: An annuity refers to the annual payment of a debt which includes a portion of principal as well as…

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: Which one of the following statements about a fixed-rate mortgage (FRM) loan is correct? a. The…

A: Fixed-rate mortgage Loan A fixed-rate mortgage loan is a loan taken for a home or real estate in…

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: Monthly payment increase

A: We can determine the difference in monthly payments using the formula below:

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: 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: Consider a 20-year mortgage for $174,334 at an annual interest rate of 5%. After 8 years, the…

A: Time period = 20 years  Value of mortgage = $174,344 Annual interest rate = 5% Refinancing time…

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: Find the monthly payment needed to amortize principle and interest for the fixed rate mortgage. Use…

A: A written agreement through which a lender gets the right to take the property that is put as a…

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: 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: mula or a calculator application to find the total interest paid for the home mortgage of ​$279,185…

A: Homes are purchased by the mortgage loans and mortgage loans are secured loans and there is…

Q: What are the Effects of Maturity on Monthly Payments on Fully Amortizing Loans?

A: In fully amortized loan, total loan will be paid off by end of maturity i.e. loan term. Monthly…

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: A mortgage of $26, 252.00 is to be repaid by making payments of $ 1368.00 at the end of each year.…

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 6.80%. What…

A: Given information: Assume present value is 100 Nominal interest rate is 6.80% Number of periods is…

Q: An investor is trying to determine the proper interest rate to apply to an account. The account pays…

A: We need to use effective interest rate formula below to calculate quarterly interest rate.r= Annual…

Q: Consider a 20-year mortgage for $142,044 at an annual interest rate of 5.2%. After 8 years, the…

A: Original Time period of mortgage is $142,044 Annual interest rate is 5.2% Annual refinancing…

Q: Determine the monthly principal and interest payment for a 15 -year mortgage when the amount…

A: The objective of the question is to calculate the monthly principal and interest payment for a…

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

A: Effective interest rate is rate of return realized after considering the impact of compounding on…

Q: Consider a $100,000, 30-year, 6.2% mortgage with monthly payments. What portion of the payments…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Determine how much you would pay in total, interest and principal, at the end of your 30-year…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: A 30-year mortgage requires payments of $4,865.46 at the end of each month. If interest is 5.31%…

A: Present value = Annuity * PVAF ( Monthly rate, Number of months Interest Amount = Total Amount paid…

Q: What is the PV of a 6-year, $149 annuity due if the annual interest rate is 5% ?

A: The objective of this question is to calculate the present value of an annuity due. An annuity due…

Q: b. You have a $300,000 mortgage with a 3.6% annual percentage rate with monthly compounding and a…

A: The monthly payment on a mortgage is an annuity i.e. the payment amount remains the same for the…

Q: Express the term Effective interest rate per payment period, quarterly payments with weekly…

A: The term Effective interest rate per payment period  is the interest rate that is computed for…

Q: What is the principal part of the 22nd monthly loan payment for a home mortgage loan of $175,000 at…

A: Loan amount: $175,000Interest rate: 6%Loan period: 30 years

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.