Question

A couple who borrow $60,000 for 30 years at 7.2%, compounded
monthly, must make monthly payments of $407.27. (Round your answers
to the nearest cent.)

(a) Find their unpaid balance after 1 year.

(b) During that first year, how much interest do they
pay?

Answer #1

To solve this problem our approach will be as follows;

A couple who borrow $50,000 for 15 years at 8.4%, compounded
monthly, must make monthly payments of $489.44. (Round your answers
to the nearest cent.) (a) Find their unpaid balance after 1 year. $
(b) During that first year, how much interest do they pay? $

Clark and Lana take a 30-year home mortgage of $129,000 at 7.8%,
compounded monthly. They make their regular monthly payments for 5
years, then decide to pay $1400 per month.
(a) Find their regular monthly payment. (Round your answer to
the nearest cent.) the answer is $ 928.63
(b) Find the unpaid balance when they begin paying the $1400.
(Round your answer to the nearest cent.) the answer is $
122,411.73
(c) How many payments of $1400 will it take...

A young couple take out a 30-year home mortgage of $145,000.00
at 6.9% compounded monthly. They make their regular monthly payment
for 7 years, then decide to up their monthly payment to
$1,200.00.
a) What is the regular monthly payment? $
b) What is the unpaid balance when they begin paying the
accelerated monthly payment of $1,200.00? $
c) How many monthly payment of $1,200.00 will it take to pay off
the loan? payments d) How much interest will this...

A recent college graduate buys a new car by borrowing $22,000 at
7.2%, compounded monthly, for 4 years. She decides to pay an extra
$20 per payment. (a) What is the monthly payment required by the
loan? (Round your answer to the nearest cent.) $ How much does she
decide to pay each month? (Round your answer to the nearest cent.)
$ (b) How many payments (that include the extra $20) will she make?
(Round your answer up to the...

This problem is a complex financial problem that requires
several skills, perhaps some from previous sections.
Clark and Lana take a 30-year home mortgage of $129,000 at 7.2%,
compounded monthly. They make their regular monthly payments for 5
years, then decide to pay $1500 per month.
(a) Find their regular monthly payment. (Round your answer to
the nearest cent.)
$
(b) Find the unpaid balance when they begin paying the $1500.
(Round your answer to the nearest cent.)
$
(c)...

A $10000 loan has an interest rate of 12% per year, compounded
monthly, and 30 equal monthly payments are required.
a) If payments begin at the end of the first month, what is the
value of each payment?
b) How much interest is in the 10th payment?
c) What would you enter into Excel to solve part b?
d) What is the unpaid balance immediately after the 10th
payment?
e) If the 30 loan payments are deferred and begin at...

Tom buys a $240,000 home. He must make monthly mortgage
payments for 30 years, with the first payment to be made a month
from now. The annual effective rate of interest is 8%. After 15
years Tom doubles his monthly payment to pay the mortgage off more
quickly. Calculate the interest paid over the duration of the
loan.

1) Consider a $126,714 35-year mortgage with an interest rate of
8% compounded monthly.
a) Calculate the monthly payment.
b) How much of the principal is paid the first, 25th, and last
year?
c) How much interest is paid the first, 25th, and last year?
d) What is the total amount of money paid during the 35
years?
e)What is the total amount of interest paid during the 35
years?
f) What is the unpaid balance after 25 years?
g)How...

A 25-year, $420,000 mortgage at 3.90% compounded semi-annually
is repaid with monthly payments.
a. What is the size of the monthly
payments?
Round to the nearest cent.
b. Find the balance of the mortgage at the end
of 5 years?
Round to the nearest cent.
c. By how much did the amortization period
shorten by if the monthly payments are increased by $125 at the end
of year five?
years
months
Express the answer in years and months, rounded to...

A young executive is going to purchase a vacation property for
investment purposes. She needs to borrow $111,000.00 for 27 years
at 5.1% compounded monthly, and will make monthly payments of
$631.59. (Round all answers to 2 decimal places.)
What is the unpaid balance after 10 months? ____
During this time period, how much interest did she pay? _____

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