Maya Womak wishes to purchase a(n) $645,000 house. She has accumulated a $125,000 down payment, but she wishes to borrow $520,000 on a 15-year mortgage. For simplicity, assume annual mortgage payments occur at the end of each year and thereare no loan feesE (Click the icon to view the present value factor table.)E (Click the icon to view the present value annuity factor table.)Read the requirements......Requirement 1. What are Womak's annual payments if her interest rate is (a) 8%, (b) 12%, and (c) 14%, compounded annually? (Round your final answers to the nearest whole dollar.)Begin by selecting the formula you will need to answer this question for each of the three scenarios (a., b., and c.)Borrowings / Present value of ordinary annuity of $1Annual payment1a. What are Womak's annual payments if her interest rate is 8%, compounded annually?Requirements1. What are Womak's annual payments if her interest rate is (a) 8%, (b) 12%,and (c) 14%, compounded annually?2. Repeat number 1 for a 10-year mortgage.3. Suppose Womak had to choose between a 15-year and a 10-year mortgage,either one at a(n) 12% interest rate. Compute the total payments and totalinterest paid on (a) a 15-year mortgage and (b) a 10-year mortgage.PrintDone

Working Note #1 Computation of loan amount::::: Cost of house = $645,000 Less: Down…

Maya Womak wishes to purchase a(n) $645,000 house. She has accumulated a $125,000 down payment, but she wishes to borrow $520,000 on a 15-year mortgage. For simplicity, assume annual mortgage payments occur at the end of each year and there are no loan fees. E (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) Read the requirements Requirement 1. What are Womak's annual payments if her interest rate is (a) 8%, (b) 12%, and (c) 14%, compounded annually? (Round your final answers to the nearest whole dollar.) Begin by selecting the formula you will need answer this question for each of the three scenarios (a., b., and c.) Borrowings / Present value of ordinary annuity of $1 Annual payment 1a. What are Womak's annual payments if her interest rate is 8%, compounded annually? Requirements 1. What are Womak's annual payments if her interest rate is (a) 8%, (b) 12%, and (c) 14%, compounded annually? 2. Repeat number 1 for a 10-year mortgage. 3. Suppose Womak had to choose between a 15-year and a 10-year mortgage, either one at a(n) 12% interest rate. Compute the total payments and total interest paid on (a) a 15-year mortgage and (b) a 10-year mortgage.

Maya Womak wishes to purchase a(n) $645,000 house. She has accumulated a $125,000 down payment, but she wishes to borrow $520,000 on a 15-year mortgage. For simplicity, assume annual mortgage payments occur at the end of each year and there are no loan fees. E (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) Read the requirements Requirement 1. What are Womak's annual payments if her interest rate is (a) 8%, (b) 12%, and (c) 14%, compounded annually? (Round your final answers to the nearest whole dollar.) Begin by selecting the formula you will need answer this question for each of the three scenarios (a., b., and c.) Borrowings / Present value of ordinary annuity of $1 Annual payment 1a. What are Womak's annual payments if her interest rate is 8%, compounded annually? Requirements 1. What are Womak's annual payments if her interest rate is (a) 8%, (b) 12%, and (c) 14%, compounded annually? 2. Repeat number 1 for a 10-year mortgage. 3. Suppose Womak had to choose between a 15-year and a 10-year mortgage, either one at a(n) 12% interest rate. Compute the total payments and total interest paid on (a) a 15-year mortgage and (b) a 10-year mortgage.

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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Question Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________.…
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