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- Suppose that four years ago you took out a Canadian mortgage for $683,000at an APR of 3.37% with monthly payments to be amortized over 25 years. You have been paying$3363.32 per month. Today, you have the opportunity to refinance your mortgage at 1.98% for your monthly payments for the remaining 21 years. (a) Calculate the e§ective monthly interest rate and the remaining balance of the loan outstanding when 21 years remain to the loan. (b) Find the new e§ective monthly interest rate if you decide to refinance at 1.98%. How much would your new monthly payment be?A 30 year mortgage for $100,000 has been issued. The interet rate is 10% and payments are made anually. If your time value of money is 12%, what is the PW of the payments in Year-1 dollars if inflation is 0%, 3%, 6%, 9%?You plan to borrow $33,100 at a 7.0% annual interest rate. The terms require you to amortize the loan with 7 equal end-of- year payments. How much interest would you be paying in Year 2? O a. $2,077.39 b. $2,049.26 c. $6,141.81 d. $2,317.00 e. $5,740.01
- Suppose that you have just borrowed $225,000 using an adjustable-rate mortgage. Suppose that the payment is scheduled to adjust at the end of every year. Use the information provided below to calculate the year 2 payment for this loan. Index rate: Margin: Periodic Cap: Lifetime Cap: Amortization: $1,107 $1,160 $1,296 $1,178 1-year CMT (Currently 1.01% and will increase to 2.06% at the end of the 1st year) 275 basis points 2 percentage points 5 percentage points 30 years with monthly payments and compoundingAssume we have a $500,000 mortgage at 3.5% original interest rate, with a 30- year term and monthly payments. The interest rate can be adjusted at the end of each year, and we assume the rate increases 0.15% after the first year and another 0.5% after the second year. What is the loan balance at the end of the second year? O481,255 None of the given answers 455.812 418,256 480,709Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $350.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan? 14.75% 13.28% 12.39% 11.21% 15.34%
- ← You have just negotiated a home mortgage with a principal of $350,000. The bank's quoted rate is 6.3%. You chose a 20-year amortization and you decide to make 12 payments per year. Each mortgage payment is $2,551.90. How much interest do you pay in the first year? Express your answer as a percentage of the total value of your mortgage payments in the first year. The interest as a percentage of the total payments in year 1 is %. (Round to four decimal places as needed.)A floating rate mortgage loan is made for $100,000 for 30yrs at a start rate of 12% interest. The parties have agreed to an $800 payment monthly. What is the loan balance at end of year 1? What if the interest rate increases to 13% at the end of year 1? How much intrest will be accrued from negative amortization in year one if the payment remains at $800? Year 5?You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each month, you make exactly the required payment. Consider the following table of data from the amortization schedule: Month N N + 1 O 3.15 %- 3.05% 3.35% O 3.45% Beginning Balance 3.25% Payment $1,289.21 Based on this information, what is the nominal annual interest rate (with monthly compounding) for this mortgage? Interest Principal Ending Balance $215.249.20 $214.525.02
- Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank has offered you $850 monthly installments, which equates to a 3.67% annualized interest rate. The monthly interest rate of 0.31% is the annual rate divided by 12. You know that the interest is paid at the end of the period, so you can multiply the opening balance by the monthly interest rate to get the interest paid. What is the closing balance for the month of November? Month Payment Interest Principal Opening Balance Closing Balance January $850.00 $10,000.00 February $850.00 March $850.00 April $850.00 May $850.00 June $850.00 July $850.00 August $850.00 September $850.00 October $850.00 November $850.00 December $850.00 Monthly Rate 0.31% Annual Rate 3.67% Total Interest Paid Group of answer choices a. $847.31…Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank has offered you $850 monthly installments, which equates to a 3.67% annualized interest rate. The monthly interest rate of 0.31% is the annual rate divided by 12. You know that the interest is paid at the end of the period, so you can multiply the opening balance by the monthly interest rate to get the interest paid. What is the closing balance for the month of November? Month Payment Interest Principal Opening Balance Closing Balance January $850.00 $10,000.00 February $850.00 March $850.00 April $850.00 May $850.00 June $850.00 July $850.00 August $850.00 September $850.00 October $850.00 November $850.00 December $850.00 Monthly Rate 0.31% Annual Rate 3.67% Total Interest Paid Group of answer choices $847.31 $2,534.38 $5,045.10 No choice given $1,692.13Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank has offered you $850 monthly installments, which equates to a 3.67% annualized interest rate. The monthly interest rate of 0.31% is the annual rate divided by 12. You know that the interest is paid at the end of the period, so you can multiply the opening balance by the monthly interest rate to get the interest paid. What is the opening balance for the month of June? Month Payment Interest Principal Opening Balance Closing Balance January $850.00 $10,000.00 February $850.00 March $850.00 April $850.00 May $850.00 June $850.00 July $850.00 August $850.00 September $850.00 October $850.00 November $850.00 December $850.00 Monthly Rate 0.31% Annual Rate 3.67% Total Interest Paid Group of answer choices 6,002.10…