Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 5, Problem 7FPE
a.
Summary Introduction
To calculate: The monthly mortgage payment.
b.
Summary Introduction
To calculate: The monthly mortgage payment.
c.
Summary Introduction
To calculate: The monthly mortgage payment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the table. Calculator answers might be slightly different. (Round your answers to the nearest cent.)
Amount
Rate
Time(Years)
AnnualTaxes
AnnualInsurance
$110,000
6%
30
$700
$360
STEP 1:
Find the monthly taxes and insurance.
taxes
$
insurance
$
STEP 2:
Use the table to find the monthly payment.$
STEP 3:
Add the monthly payment, taxes, and insurance.$
Suppose you take out a $185,500 mortgage for 30 years at 5.15% interest.
(a) Find the monthly payment on this mortgage. S
(b) Fill out the first two rows of the amortization schedule below. Round your answers to the nearest dollar.
Payment Number Interest Payment Principal Payment
Balance of Loan
1
2
Question Help: D Video M Message instructor D Post to forum
Years
Annual interest rate
financed 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75%
10
9.66
9.77
9.89
10.01
10.12
10.24
10.36
10.48
10.61
10.73
10.85
10.98
11.10
11.23
11.35
11.48
12
8.28
8.40
8.51
8.63
8.76
8.88
9.00
9.12
9.25
7.91
7.29
9.37
9.50
9.63
9.76
9.89
10.02 10.15
8.85
8.71
7.52
6.89
6.19
8.57
7.97
15
6.91
7.03
7.15
7.27
7.40
7.65
7.78
8.04
8.17
8.30
8.44
17
6.26
6.39
6.64
6.76
7.42
7.56
6.51
5.80
5.44
7.02
7.15
7.69
7.83
8.11
8.25
5.55
5.93
7.02
7.16
6.83
7.46
7.60
7.28
20
5.67
6.06
6.33
6.46
6.60
6.74
6.88
7.31
6.98
6.60
7.13
6.75
22
5.97
5.18
4.74
5.31
5.57
5.70
5.84
6.11
6.25
6.39
6.54
6.68
25
4.87
5.01
5.14
5.28
5.42
5.56
5.70
5.85
5.99
6.14
6.29
6.44
6.91
30
4.22
4.35
4.49
4.63
4.77
4.92
5.07
5.22
5.37
5.52
5.68
5.84
6.00
6.16
6.32
6.49
35
3.85
3.99
4.13
4.28
4.43
4.58
4.73
4.89
5.05
5.21
5.37
5.54
5.70
5.87
6.04
6.21
Chapter 5 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the table. Calculator answers may be slightly different. (Round your answer to the nearest cent.) Amount Rate Time(Years) AnnualTaxes AnnualInsurance $110,000 9% 15 $1500 $1200 $arrow_forwardConsider a home mortgage of $17500 at a fixed APR of %6 for 15 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. Please show all work computaion explanation formulas clearly with stepsarrow_forwardBased on Exhibit 9-9 or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a $119,000, 15-year loan at 6.00 percent. b. $103,000, 30-year loan at 8.00 percent. c. $96,000, 20-year loan at 5.00 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate Monthly Mortgage Payment [lower higher monthly payment. monthly payment is required. Term Rate 3.0% 30 years $ 4.22 25 years 20 years 15 years $ 4.74 $ 5.55 $ 6.91 3.5 4.49 5.01 5.80 7.15 4.0 4.77 5.28 6.06 7.40 4.5 5.07 5.56 6.33 7.65 5.0 5.37 5.85 6.60 7.91 5.5 5.68 6.14 6.88 8.17 6.0 6.00 6.44 7.16 8.44 6.5 6.32 6.75 7.46 8.71 7.0 6.65 7.07 7.75 8.99 7.5 6.99 7.39 8.06 9.27 8.0 7.34 7.72 8.36 9.56arrow_forward
- Use the formula or a calculator application to find the total interest paid for the home mortgage of $279,185 at 4.697% interest for 30 years given that the monthly payment is $1,446.62.arrow_forwardUse this table to find the monthly mortgage payments, when necessary. Find the total interest for a mortgage of $116,500 at 7% for 30 years. $158,513.28 $162,401.00 $180,473.34 $270,509.00arrow_forwardUse PMT formula on the image uploaded to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 20-year fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. ______________________________________________________________ a. The monthly payment is $________.. (Do not round until the final answer. Then round to the nearest cent as needed.) - The total interest for the loan is $_______. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Payment Number Interest Principal Loan Balance 1 $ $ $ 2 $ $ $ 3 $ $ $ (Use the answer from part a to find these answers. Round to the…arrow_forward
- Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5 1/4 % 1 4 for 40 years. Use this table and give the total interest as your answer. (Round your answers to the nearest cent.) Monthly payment$ Total interest$arrow_forwardConsider a traditional 30-year fixed rate mortgage, borrowing $400,000 (present value) at an annual interest rate of 3.25%, payable in monthly payments. Create an Excel spreadsheet and use basic math functions to develop a schedule for the entire life of the loan. Your table should include columns for Payment #, Principle Remaining, Interest Paid, Principal Paid, Cumulative Interest Paid, and Cumulative Principal Paid. Then use this table to answer the following questions: c. How much did the borrower pay in total to pay off this loan, if they paid just the minimum payment for the entire 30 years? And how much of that total is just interest? d. Create a graph of the interest and principal amounts paid each month, for just the first two years of the loan. (Hint: use an “X Y Scatter” chart type) e. Bonus question: How much sooner (in months) would the borrower pay off this loan, if they paid an extra $100 per month? Your Excel spreadsheet must show this calculationarrow_forwardBased on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a. $61,000, 15-year loan at 7.50 percent. b. $151,000, 30-year loan at 8.00 percent. c. $88,000, 20-year loan at 6.50 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate Monthly Mortgage Payment monthly payment. monthly payment is required.arrow_forward
- Make an amortization table to show the first two payments for the mortgage. Amount of mortgage Annual interest rate Years in mortgage Monthly payment $407,550 5.25% 35 $2122.29 Month Monthly payment Interest Principal End-of-month principal 1 $2122.29 $enter your response here $enter your response here $enter your response here 2 $2122.29 $enter your response here $enter your response here $enter your response herearrow_forwardBased on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? How do I round time value factor and final answers to 2 decimal places? What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?arrow_forwardFind the indicated amounts for the fixed-rate mortgages. Monthly payment Mortgage рayment Purchase Total Down Mortgage Interest payment amount Interest price of home paid for mortgage Years rate paid per $1,000 $85,000 $8,000 6.00% 25 Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed. The mortgage amount is S 77000 . (Round to the nearest dollar as needed.) The monthly payment per $1,000 is S 6.44'. (Round to the nearest cent as needed.) The monthly mortgage payment is S (Round to the nearest cent as needed.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (...
Finance
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Cengage Learning