Amount of loan payment, if it was amortized for 3 years. Balloon Payment: It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

a You want to buy house that costs $170,000. You have $17,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $153,000. However, the realtor persuades the seller to take $153,000 mortgage called a seller take-back mortgage) at a rate of 8% provided the loan is paid off in full in 3 years. expect to inhent $170,000 in 3 years, but light now all you have is $17,000 and you can afford to make payments of no more than $19,000 per year given your salary. (The loan would call for monthly payments, but assume things.) end-of-year annual payments to simplify p a) If the loan was amortized over 3 years, how large would each annual payment be? Round your answer to the nearest cent b) If the loan was amortized over 30 years, What would each payment be? Round your answer to the nearest cent. C) To satisfy the seller, the 30-year mortgage loan would be written as a balloun note, which means at the end of the third year, you would have to make the

you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at 3.5% per annum. suppose that before you can make any payments you receive a pay raise so you can pay an extra 200 per month with your normal payment. how many payments are required to fully amortize the loan assuming the extra 200 is paid each month?

You need a 25-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $900? A) 48,522.47 B) 341,563.19 C) 67,932.38 D) 366,212.08 E) 352,127.00 Only typing answer Please explain step by step without table and graph

Answer 2

Question

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 6

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 7

Chapter 5, Problem 35P

a.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 3 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 8

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 9

b.

Summary Introduction

To calculate: Amount of loan payment, if it was amortized for 30 years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 10

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 11

c.

Summary Introduction

To calculate: Balloon payment outstanding value at the end of three year after making payment of $22,000 for the next three years.

Balloon Payment:

It is the total amount which is paid at the end of the term of the loan. If there is a condition of paying the entire principal amount in lump sum at the end of the term then there is an involvement of balloon payment. Amount paid as balloon payment is generally higher in comparison of the amount paid in monthly installments.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 5 - Prob. 1Q Ch. 5 - Explain whether the following statement is true or...Ch. 5 - If a firms earnings per share grew from 1 to 2...Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - The present value of a perpetuity is equal to the...Ch. 5 - Banks and other lenders are required to disclose a...Ch. 5 - What is a loan amortization schedule, and what are...Ch. 5 - FUTURE VALUE If you deposit 2,000 in a bank...Ch. 5 - Prob. 2P

Solution Summary: The author explains how to calculate the amount of loan payment if it was amortized for 3 years. Balloon payment is the total amount which is paid at the end of the term.

Concept explainers

Want to see the full answer?

Chapter 5 Solutions