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:You want to take out a $304,000 mortgage (home loan). The interest rate on the loan is 4%, and the loan is
for 30 years. Your monthly payments are $1,451.34. How much will still be owed after making payments for
15 years? Round your answer to the nearest dollar.
Answer: $
M
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- You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $ EAR: %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_forwardSuppose you intend to purchase a house worth $239,900 with a 30-year fixed rate mortgage. You have a down payment of 15%. (a) How much are you planning to finance? (b) Find the monthly payment needed to amortize the loan, at a rate of 2.4% compounded monthly. (c) Approximately how much of the loan will remain after 12 years?arrow_forward
- You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big of a loan can you afford? How much will you pay the loan company? How much of that money is interest?arrow_forwardYou can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the interest rate is 7.50%, what is the most you can borrow?arrow_forwardYou borrow $250,000; the annual loan payments are $35,700.70 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.arrow_forward
- Suppose you take a 6 year loan of $50,000 with an annual interest rate of 13% and monthly payments starting at the end of year 1. What are the monthly loan payments? Enter your response below.arrow_forwardYou want to buy a house. The loan amount will be $285,000.00. A bank is offering a 5% interest rate for 240 months (20 years). What will your monthly payments be? My monthly payment will be $_________ .arrow_forwardYou just took out a 15-year traditional fixed-rate mortgage for $300,000 to buy a house. The interest rate is 10.8% (APR) and you have to make payments monthly. a. What is your monthly payment?b. How much of your first monthly payment goes towards paying down the outstanding balance (in $)?c. What is the outstanding balance after 1 year if you have made all 12 payments on time? d.arrow_forward
- Explain well with proper step by step Answer.arrow_forwardYou have just taken out a $15,000 car loan with a 7% APR, compounded monthly. The loan is for 5 years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? The amount of your first payment that will go toward the interest of the loan is The amount of your first payment that will go toward the principal of the loan isarrow_forwardLet’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a monthly payment for the next 30 years, with an annual interest rate of 3%. What will be the amount of your monthly mortgage (i.e., home loan) payment? answer choices $1,890.37 $1,400.01 $1,475.61 $1,228.14arrow_forward
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