Question

How to calculate nominal interest rate given borrowed principal of $100,000, fixed rate mortgage for 30 years, compounded monthly, and payments due at the end of each month. What is the nominal interest rate if you pay $599.55 per month.

Please do not use excel! I need to know what formula to use to calculate this. Thank you.

Answer #1

Suppose that five years ago you borrowed $500,000 using a
30-year fixed-rate mortgage with an annual interest rate of 7.00%
with monthly payments and compounding. The interest rate on 30-year
fixed-rate mortgages has fallen to 6.25% and you are wondering
whether you should refinance the loan. Refinancing costs are
expected to be 4% of the new loan amount.
What is the net present value of refinancing if you make all of
the scheduled payments on the new loan?
What is...

A fully amortized mortgage is made for $100,000 for 10 years.
Interest rate is 6 percent per year compounded monthly.
What is the monthly payment amount?
What is balance of the loan at the end of 5 years?
What is the total interest paid by the end of the fifth
year?
What is the total principal paid by the end of the tenth
year?
SHOW WORK AND DONT USE EXCEL

Victoria and David have a 30-year, $75,000 mortgage with an 8%
nominal annual interest rate. All payments are due at the end of
the month.
What percentage of their monthly payments the first year will go
towards interest payments?
7.76%
9.49%
82.17%
90.51%
91.31%

Suppose that you are considering a conventional, fixed-rate
30-year mortgage loan for $100,000. The lender quotes an APR of
7.46%, compounded monthly; mortgage payments would be monthly,
beginning one month after the closing on your home purchase. After
19 years of payments, what is the balance outstanding on your
loan?

you are taking out a $100,000 mortgage loan to be repaid over 25
years in 300 monthly payments.
a. if the interest rate is 16% per year, what is the amount of
the monthly payment?
b. if you can only afford to pay $1000 per month, how large a
loan can you take?
c. if you can afford to pay $1500 per month and need to borrow
$100,000, how many months would it take to pay the mortgage?
d. if...

You need a 30-year, fixed-rate mortgage to buy a new home for
$240,000. Your mortgage bank will lend you the money at a 9.1
percent APR for this 360-month loan. However, you can afford
monthly payments of only $950, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Required:
How large will this balloon payment have to be for you to keep
your monthly payments...

This morning, you borrowed $162,000 to buy a house. The mortgage
rate is 4.35 percent. The loan is to be repaid in equal monthly
payments over 20 years with the first payment due one month from
today. Assume each month is equal to 1/12 of a year and all taxes
and insurance premiums are paid separately. How much of the second
payment applies to the principal balance?
Please do not use excel
$714.43
$721.14
$658.56
$743.38
$756.70

Rutherford Hayes has borrowed $80000 as mortgage loan at 7.5%
interest rate and 30-year term. He has to pay the loan in monthly
installments. After how many payments will the unpaid balance
become $40000? (Answer: 264.94 months)
Please answer in excel format

A 100,000 loan is being repaid in 360 monthly installments at a
9% nominal annual interest rate compounded monthly. The first
payment is due at the end of the first month. Determine which
payment is the first where the amount of principal repaid exceeds
the amount of interest paid.
266th
267th
268th
269th
270th

Suppose that you are considering a conventional, fixed-rate
30-year mortgage loan for $100,000. The lender quotes an APR of
3.26%, compounded monthly; mortgage payments would be monthly,
beginning one month after the closing on your home purchase.
After 20 years of payments, what is the balance outstanding on
your loan?
Do not round at intermediate steps in your calculation. Round
your answer to the nearest penny. Do not type the $ symbol

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