Question

- You take out a $25,000 30 years mortgage with monthly payments and a rate of 3.5%, monthly compounded. What is your monthly mortgage payment?
- You take out a $25,000 30 years mortgage with monthly payments and a rate of 3.5%, monthly compounded. What is the loan balance by the end of year 15?
- Calculate the future value at the end of year 4 of an investment fund earning 7% annual interest and funded with the following end-of-year deposits: $1,500 in at the end of year1, $2,000 at the end of year 2, and $2,500 at the end of year 3, $3,000 at the end of year 4.
- A company just decided to save $5,500 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pay 4.5% interest compounded monthly. The first deposit will be made today. What would today’s deposit amount have to be if the firm opted for one lump sum deposit today that would yield the same amount of savings as the monthly deposits after 6 years?

Answer #1

Answer to Question 1:

Amount Borrowed = $25,000

Time Period = 30 years or 360 months

Annual Interest Rate = 3.50%

Monthly Interest Rate = 3.50% / 12

Monthly Interest Rate = 0.291667%

Let Monthly Payment be $x

$25,000 = $x/1.00291667 + $x/1.00291667^2 + … +
$x/1.00291667^359 + $x/1.00291667^360

$25,000 = $x * (1 - (1/1.00291667)^360) / 0.00291667

$25,000 = $x * 222.694874

$x = $112.26

Monthly Payment = $112.26

Answer to Question 2:

Remaining Period = 15 years or 180 months

Loan Outstanding = $112.26/1.00291667 + $112.26/1.00291667^2 + …
+ $112.26/1.00291667^179 + $112.26/1.00291667^180

Loan Outstanding = $112.26 * (1 - (1/1.00291667)^180) /
0.00291667

Loan Outstanding = $112.26 * 139.883081

Loan Outstanding = $15,703.27

you
take out a $250000 30 year mortgage with monthly payments and a
rate of 3.5% montgky compounded.what is the loan balance by the end
of the year 15

You
take out a $550,000 30 year mortgage with monthly payments and an
APR of 10%, compounded monthly. How much of your
222nd
mortgage payment is
interest?

You take out a mortgage in the amount of $200,000 for 30 years
at a rate of 5.75%:
a. What is the monthly payment amount?
b. How much interest will you pay over 30 years?
c. What will be the payoff at the end of the 5th year?
d. How much interest will you pay during the 5th year?
Please show your work and explain your answers.

Exactly 18 years ago, you took out a $550,000 30-year mortgage
with monthly payments and
an APR of 10% compounded monthly. You have just made your 216th
payment. What is the
outstanding balance on your loan?

You take out standard 30-year mortgage with fixed monthly
payments to purchase your house. The mortgage is for $250,000 with
a nominal annual rate of 4.6% (Monthly compounding). Each month,
you send in a check for $1,403.81, which is above the required
payment, where the excess payment directly reduces the outstanding
balance each month. What portion of your payments in months 25-36
go towards interest?

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...

Suppose you take a fixed-rate mortgage for $200,000 at 5.00% for
30 years, monthly payments.
A. (1 pt) How much of the payment is interest for month
100?
Answer: ________
B. (1 pt) How much interest do you pay in the first six
years?
Answer: ________

You take out a mortgage in the amount of $300,000 at 4.2%
interest rate. Payments are to be made at the end of each month for
thirty years. How much of the first loan payment is interest?
$1,050
$1,467
$12,600
$17,773

Problem 37.8 The interest rate on a 30 year mortgage is 12%
compounded monthly. Lauren is repaying the mortgage by paying
monthly payments of 700. Additionally, to pay o the loan early,
Lauren has made additional payments of 1,000 at the end of each
year. Calculate the outstanding balance at the end of 10 years.
Answer should be: $45,435.32

A $85,000 mortgage is to be amortized by making monthly
payments for 15 years. Interest is 3.3% compounded semi-annually
for a seven-year term.
(a)
Compute the size of the monthly payment.
(b)
Determine the balance at the end of the seven-year
term.
(c)
If the mortgage is renewed for a seven-year term at 3%
compounded semi-annually, what is the size of the monthly payment
for the renewal term

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