Question

To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000...

To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000 which requires equal yearly payments. The effective annual interest rate is 3.6%. How much of the principal do you pay off in year 3? $21,318.27 None of the above $22,085.73 $12,891.75 $34,977.48

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000...
To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000 which requires equal yearly payments. The effective annual interest rate is 3.6%. How much interest do you pay off in year 3? $13,659.21 $12,891.75 $22,085.73 $23,704.52 None of these
To buy your first home, you take out a 15 year (fully amortizing) mortgage for $350,000...
To buy your first home, you take out a 15 year (fully amortizing) mortgage for $350,000 which requires equal yearly payments. The effective annual interest rate is 3.6%. How much principal do you pay off in year 2? $18,653.49 $42,557.10 $30,605.29 None of these $11,951.81
You took out a fully amortizing 30 year mortgage with the initial balance of $681,016. This...
You took out a fully amortizing 30 year mortgage with the initial balance of $681,016. This mortgage has a fixed interest rate at 3%. After you completed two full years of monthly payments, how much have you paid toward principal? Round your answer to the nearest cent (e.g. if your answer is $7000.9873, enter 7000.99).
You took out a fully amortizing 30 year mortgage with the initial balance of $125,737. This...
You took out a fully amortizing 30 year mortgage with the initial balance of $125,737. This mortgage has a fixed interest rate at 1%. After you completed two full years of monthly payments, how much have you paid toward principal? Round your answer to the nearest cent (e.g. if your answer is $7000.9873, enter 7000.99).
You took out a fully amortizing 30 year fixed rate $200,000 mortgage with 5% contract interest...
You took out a fully amortizing 30 year fixed rate $200,000 mortgage with 5% contract interest rate. After you completed two full years of payments, how much have you paid toward principal? please explain,
Ann obtains a fully amortizing 15 year Fixed Rate Mortgage with monthly payments for $4,500,000 at...
Ann obtains a fully amortizing 15 year Fixed Rate Mortgage with monthly payments for $4,500,000 at 4.38%. How much does Ann need to pay per month?
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly...
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly payments for 10 years, 120 payments in all, with the first payment in one month. The bank charges you an interest rate of 9.6% (APR with monthly compounding). a. How much of your first payment is interest, and how much is repayment of principal? b. What is the loan balance immediately after the 10th payment? (Calculate the loan balance using the annuity formula.) c....
You plan to take a 30-year mortgage in the amount of $800,000 to buy a home....
You plan to take a 30-year mortgage in the amount of $800,000 to buy a home. The bank charges 5.5% annual interest compounded monthly. You are going to pay off this loan by fixed installments (fixed total payment) to be made at the end of each month for thirty years. How much is each installment payment? How much is the total principal repayment after four months? How much is the total interest payment after four months. Draw an amortization table...
Suppose you have taken out a $200,000 fully amortizing fixed rate mortgage loan that has a...
Suppose you have taken out a $200,000 fully amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 4.25%. In month two of the mortgage, how much of the monthly mortgage payment does the principal repayment portion consist of?
You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR 9with semi-annual compounding) of 7.04%. 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 you in pay in principal, during the the Twentieth year (i.e. between 19 and 20 years from now) ?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT