Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You want to buy a $248,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest.
a) How much is the loan amount going to be?
b) What will your monthly payments be if the interest rate is 5%?
c) What will your monthly payments be if the interest rate is 6%?
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- You are thinking of purchasing a house. The house costs $ 431,000. You have $ 45,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 20-year mortgage that requires annual payments and has an interest rate of 4 % per year. What will be your annual payment if you sign this mortgage?arrow_forward4. You are purchasing a house for $310,000. You plan to take out a 25-year loan to pay for the house.a. What will your monthly payments be if the interest rate is 5%?b. What will your monthly payments be if the interest rate is 6%arrow_forwardSay that you purchase a house for $234,000 by getting a mortgage for $205,000 and paying a down payment of $29,000. If you get a 15-year mortgage with an interest rate of 8 percent, what are the monthly payments? What would the loan balance be in five years? If the house appreciates at 2 percent per year, what will be the value of the house in five years? How much of this value is your equity?arrow_forward
- You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan at 6.55% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?arrow_forwardYou want to buy a $251,000 home. You plan to pay 5% as a down payment and take out a 30-year loan for the rest. How much is the loan going to be? What will the monthly payments be if the interest rate 5%? What will the monthly payments be if the interest rate is 6%?arrow_forwardSuppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this loan are $ 1621.50. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments?arrow_forward
- 3) If Blitzen wants to buy a $150,000 house. Blitzen is going to pay $60,000 down and make monthly payments for 30 years. The rate is 3.2% monthly with 2 points. If the loan is paid off after 12 years, what is the true rate?arrow_forwardDo all parts its urgentarrow_forwardSuppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)$arrow_forward
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