You purchase a plot of land worth $58,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.11% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $58,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $ (c) How much equity (in dollars) do you have in the garden after 4 years?

You purchase a plot of land worth $58,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.11% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $58,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $ (c) How much equity (in dollars) do you have in the garden after 4 years?

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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You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.22% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? $______ (b)What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $______ (c)How much equity (in dollars) do you have in the garden after 4 years? $_____ Please answer all subparts. I will really upvote
You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.22% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? X $ (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $ 170255.84 (c) How much equity (in dollars) do you have in the garden after 4 years? $ X
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You are assiting a newly hired employee. You begin explaning the process of utilizing excel to finance properties. Consider the following. A realator has a house on sale for $640,000. If possible you believe you can finance the home for $300,000 for 20 years at a 3% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel. How would you caluclate this in Excel using the PV function? Rate: Nper: Pmt: FV: Type:
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