Question

You decide to purchase a new home and need a ​$160,000 mortgage. You take out a...

You decide to purchase a new home and need a

​$160,000

mortgage. You take out a loan from the bank that has an interest rate of

7​%.

What is the yearly payment to the bank to pay off the loan in 10​ years?

FP​ =

​$nothing

​(Round your response to two decimal​ places.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We can use the present value of the annuity formula:

Where,
PVA = Present value of the annuity
A = Annuity or yearly payment
i = Interest rate in decimal form (i.e 7% = 0.07)
n = Number of years

Therefore,

Therefore, the yearly payment will be $22,780.40

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You need a 30-year, fixed-rate mortgage to buy a new home for $265,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for $265,000. Your mortgage bank will lend you the money at an APR of 5.6 percent for this 360-month loan. However, you can only afford monthly payments of $1,050, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.      How large will this balloon payment have to be for you to keep your monthly...
A young couple take out a 30-year home mortgage of $145,000.00 at 6.9% compounded monthly. They...
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...
You decide to take out a mortgage to buy a home after graduation. Assume a loan...
You decide to take out a mortgage to buy a home after graduation. Assume a loan amount of $100,000 for 30 years at a nominal annual interest rate of 12%, compounded monthly. What is the total amount of interest that is paid over the course of the 30 years? Please round your numerical answer to the nearest integer dollar.
.Q. You purchase a home for $275,000 with a 10% down payment. You take out a...
.Q. You purchase a home for $275,000 with a 10% down payment. You take out a 30-year mortgage loan at 4.35% interest. What is your monthly principal and interest payment? Round to the nearest 0.01.
You decide to take out a mortgage to buy a home after graduation. Assume a loan...
You decide to take out a mortgage to buy a home after graduation. Assume a loan amount of $100,000 for 30 years at a nominal annual interest rate of 12%, compounded monthly. What is the total amount of interest that is paid over the course of the 30 years?
You are purchasing a new home and need to borrow $325,000 from a mortgage lender. The...
You are purchasing a new home and need to borrow $325,000 from a mortgage lender. The mortgage lender quotes you a rate of 6.5% APR for a 30-year fixed-rate mortgage (with payments made at the end of each month). The mortgage lender also tells you that if you are willing to pay one point, they can offer you a lower rate of 6.25% APR for a 30-year fixed rate mortgage. One point is equal to 1% of the loan value....
Suppose you decide to purchase a $150,000 home using an inheritance of $20,000 as your down...
Suppose you decide to purchase a $150,000 home using an inheritance of $20,000 as your down payment. A down payment is subtracted from the total cost of the home and therefore you owe $130,000. To pay for this amount you will need a loan, so $130,000 is the principal on your loan. Suppose the interest rate on a 30 year mortgage is 4.75%. What will your monthly payment be? How much will you pay on the loan if you pay...
You need a 30-year, fixed-rate mortgage to buy a new home for $450,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for $450,000. Your mortgage bank will lend you the money at a 6 percent APR for this loan. However, you can afford monthly payments of only $2,000, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single lump sum payment. How large is this lump sum payment?
This morning, you took out a loan of $216,000 to purchase a home. The interest rate...
This morning, you took out a loan of $216,000 to purchase a home. The interest rate on the 30-year mortgage is 3.75 percent and you will make monthly payment. You have decided to make additional monthly payment of $360 beginning with the first payment that will occur one month from today. By how many years will you shorten the length of time it will take you to pay off the loan? Group of answer choices 11.69 years 8.11 years 13.24...
You take out a $325,000 thirty-year mortgage (amortized loan) when you purchase your home. The interest...
You take out a $325,000 thirty-year mortgage (amortized loan) when you purchase your home. The interest rate is 6%. You make monthly payments of $1948.54. What is the principal portion of your first payment?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT