am. 111. A mortgage of $656,000 is amortized over 25 years by making end-of-month paymentsof $4,120.Your calculator must be set to 2 decimals before doing any calculations that aregoing to involve Amortization.a.) What is the annual rate of interest compounded semi-annually?(Correct to exactly 4 decimal places.)Once you have seen what this is, to 4 decimal places, set your calculator back to 2decimal places before using the AMORT function.b.) What is the value of the final (partial) payment?The final payment required to make the outstanding balance equal exactly zero.(Use the BAll+: Do not calculate this by hand.)c.) What is the total interest cost for the debt over 25 years (300 payments)?(Use the BAll+: Do not calculate this by hand.)

To solve this problem, we can use the formula for the monthly payment of a mortgage: P=…

Answered: A mortgage of $656,000 is amortized…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at an annual interest rate of 4.24%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? _____ (b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) _____$ (c) If the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change?
A mortgage of $656,000 is amortized over 25 years by making end-of-month payments of $4,120. Your calculator must be set to 2 decimals before doing any calculations that are going to involve Amortization. a.) What is the annual rate of interest compounded semi-annually? (Correct to exactly 4 decimal places.) Once you have seen what this is, to 4 decimal places, set your calculator back to 2 decimal places before using the AMORT function. b.) What is the value of the final (partial) payment? The final payment required to make the outstanding balance equal exactly zero. (Use the BAII+: Do not calculate this by hand.) c.) What is the total interest cost for the debt over 25 years (300 payments)? (Use the BAII+: Do not calculate this by hand.)
Use the formula or a calculator application to find the total interest paid for the home mortgage of $276,835 at 4.633% interest for 30 years given that the monthly payment is $1,424.48. Total interest is S (Simplify your answer. Type an integer or decimal rounded to two decimal places as needed.)
You have taken a loan of $92,000.00 for 35 years at a 4.9% annual interest rate, with interest compounded quarterly. Fill in the amortization table below to show how the payments will be applied to interest and principal: (Round all answers to 2 decimal places. Please note the order of the headings in the table - make sure you put the answers in the appropriate columns as layed out below.) Payment number Payment amount Principal Amount Interest 0) 1) 2) 3) $ LA tA +A LA $ Balance $92,000.00 tA LA
Consider that you take out a $250,000, 15-year mortgage with 3.5% interest with monthly payments. Create the amortization schedule. (Show the first 3 payments) Payment # Payment Amount Interest Paid Principal Paid Remaining Balance
Consider a 30-year home mortgage of $100,000 at 6% per year. What is the monthly payment? Use Theorem 1 as attached to make an amortization schedule of the first 6 months: Month (k) Principal P(k) Interest I(k) Balance due B(k) 1 2 3 4 5 6 where P(k) is the amount paid to the principal in the k’th payment, I(k) is the amount paid to interest in the k’th payment, B(k) is the balance due after the k’th payment.
The following loan is a simple interest amortized loan with monthly payments. (Round your answers to the nearest cent.) $7000, 0.085, 4 years (a) find the monthly payment (b) find the total interest
Assume we have a $1 million 15 year mortgage with monthly payments beginning in exactly one month; the interest rate is 6%. Determine the monthly mortgage payment under the following assumptions. In each case verify your calculation by giving the relation between the pay rate and the accrual rate. It is an 10 loan O Monthly payment: $5000; pay rate: 0.5%; accrual rate: 0.5% O Monthly payment: $5000; pay rate: 6%; accrual rate: 6% O Monthly payment: $5000; pay rate: 0.05%; accrual rate: 6% O Monthly payment: $60000, pay rate: 6%; accrual rate: 6%
Find a recurrence relation for the amount of money outstanding on a $30,000 mortgage after n years if the interest rate is 8 percent and the yearly payment (paid at the end of each year after interest is computed) is $3,000. (b) Use a calculator or computer to determine how many years it will take to pay off the mortgage.
A homebuyer wishes to take out a mortgage of $200,000 for a 40-year period. What monthly payment is required if the interest rate is 11%? What is the total amount paid during the term of the loan? Carry out all calculations exactly and round the final answers only. Carry out all calculations exactly and round the final answer for the monthly payment to two decimal places and the final answer for the total amount paid to the nearest integer. The required monthly payment is $L The total amount paid during the term of the loan is $
You plan to purchase a $350,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.50 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the mortgage. How much total interest is paid on this mortgage? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
You have just purchased a home and taken out a $550,000 mortgage. The mortgage has a 30-year term with monthly payments and an annual percentage rate (APR) (with semi-annual compounding) of 6.80%. (Note: Be careful not to round any intermediate steps less than six decimal places.) a. How much will you pay in interest, and how much will you pay in principal, during the first year? b. How much will you pay in interest, and how much will you pay in principal, during the twentieth year (i.e., between 19 and 20 years from now)? a. How much will you pay in interest, and how much will you pay in principal, during the first year? During the first year, you will pay an interest payment of $ (Round to the nearest dollar.) During the first year, you will pay a principal payment of $ (Round to the nearest dollar.)

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