Question

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?

Answer #1

Calculation of monthly payment:

Amount borrowed = $550,000

Time period = 30 years or 360 months

Annual interest rate = 10.00%

Monthly interest rate = 10.00% / 12

Monthly interest rate = 0.8333%

Let monthly payment be $x

$550,000 = $x/1.008333 + $x/1.008333^2 + … + $x/1.008333^359 +
$x/1.008333^360

$550,000 = $x * (1 - (1/1.008333)^360) / 0.008333

$550,000 = $x * 113.954658

$x = $4,826.48

Monthly payment = $4,826.48

Calculation of loan outstanding:

Time period = 12 years or 144 months

Loan outstanding = $4,826.48/1.008333 + $4,826.48/1.008333^2 + …
+ $4,826.48/1.008333^143 + $4,826.48/1.008333^144

Loan outstanding = $4,826.48 * (1 - (1/1.008333)^144) /
0.008333

Loan outstanding = $4,826.48 * 83.678146

Loan outstanding = $403,870.90

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?

10. Five years ago you took out a 5/1 adjustable rate mortgage
and the five-year fixed rate period has just expired. The loan was
originally for $ 250,000 with 360 payments at 5 % APR, compounded
monthly. a. Now that you have made 60 payments, what is the
remaining balance on the loan? b. If the interest rate increases by
1 %, to 6 % APR, compounded monthly, what will be your new
payments?

Five years ago you took out a 5/1 adjustable rate mortgage and
the five-year fixed rate period has just expired. The loan was
originally for $291,000 with 360 payments at 4.1% APR, compounded
monthly.
a. Now that you have made 60 payments, what is the remaining
balance on the loan?
b. If the interest rate increases by 1.2%, to 5.3% APR,
compounded monthly, what will your new payments be?

A couple took out a $390,000.00 mortgage ten years ago. The
original terms called for 30 years of monthly payments at a 6.60%
APR. The couple has made all payments over the last 10 years.
Currently, the couple is considering re-financing their
mortgage.
The couple has been offered a chance to re-finance their
mortgage balance. The new mortgage will be for 30 years at the
lower rate of 4.92% APR with monthly compounding. The mortgage will
call for monthly payments....

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...

Five years ago Lilian took out a 30 year 5/1 Hybrid ARM loan
with monthly payments. The initial rate on this loan is 2% and it
resets to LIBOR plus a margin of 150bps. Suppose the remaining
balance after five years of payments is $197,000 and the LIBOR rate
at the first reset if 4%. What will be Lilian's new monthly payment
during 6th year of the loan? Express your answer as a number
rounded to the nearest cent (e.g....

Five years ago Lilian took out a 30 year 5/1 Hybrid ARM loan
with monthly payments. The initial rate on this loan is 2% and it
resets to LIBOR plus a margin of 150bps. Suppose the remaining
balance after five years of payments is $210,107 and the LIBOR rate
at the first reset if 4%. What will be Lilian's new monthly payment
during 6th year of the loan? Express your answer as a number
rounded to the nearest cent (e.g....

Five years ago Lilian took out a 30 year 5/1 Hybrid ARM loan
with monthly payments. The initial rate on this loan is 4% and it
resets to LIBOR plus a margin of 150bps. Suppose the remaining
balance after five years of payments is $291,861 and the LIBOR rate
at the first reset if 4%. What will be Lilian's new monthly payment
during 6th year of the loan? Express your answer as a number
rounded to the nearest cent (e.g....

You have just sold your house for $1,000,000 in cash. Your
mortgage was originally a 30-year mortgage with monthly payments
and an initial balance of $800,000. The mortgage is currently
exactly 18½ years old, and you have just made a payment. If the
interest rate on the mortgage is 5.25% (APR), how much cash will
you have from the sale once you pay off the mortgage?
Sale
price
$
1,000,000
Initial balance
$
800,000
Number of years
30
Periods...

Mr. and Mrs. Spirit purchased a $35,000 house 20 years ago. They
took a 30-year mortgage for $30,000 at a 3% annual interest rate.
Their bank, the First Amityville National Bank, has recently
offered the Spirits two alternatives by which they could prepay
their mortgage. The Spirits have just made their 20th annual
payment.
[A] Under the first alternative, the Spirits could prepay their
mortgage at a 30% discount from the current principal outstanding.
If current 10-year mortgage rates are...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 15 minutes ago

asked 27 minutes ago

asked 27 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago