Question

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 showing beginning balance, total payment, principal payment, interest payment and ending balance for four months

Answer #1

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 take out a 20-year loan in the amount of $450,000 at a 4
percent annual rate. The loan is to be paid off by equal monthly
installments over 20 years. Draw an amortization table showing the
beginning balance, total payment, principal repayment, interest
payment and ending balance for each month. How much is the total
interest payment for the first four months? (show only four months
on the table).

You take out a 15-year loan amount in the amount of $300,000 at
a 7% rate annually. The loan is to be paid off by equally monthly
installments over 15 years. Draw an amortization table showing the
beginning balance, total payment, principle repayment, interest
payment, and ending balance for each month. How much is the total
interest payment for the 5 months? (Show only 5 months on the
table)
***Please show all work***

David and Debi Davidson have just signed a 30-year, 4%
fixed-rate mortgage for $360,000 to buy their
house. Find out this couple's monthly mortgage payment
by preparing a loan amortization schedule for the Davidson’s for
the first 2 months; find out how much of their payments applied to
interest; and after 2 payments, how much of their principal will be
reduced. (Please construct a loan amortization schedule and show
your calculations).

4. A. What would be your mortgage payment if you pay for a
$250,000 home by making a 20% down payment and then taking out a
3.74% thirty year fixed rate mortgage loan to cover the remaining
balance. All work must be shown justifying the following
answers?
Mortgage payment = _______________
B. How much total interest would you have to pay over the entire
life of the loan?
Total interest paid = __________
C. Suppose you inherit some...

Use an amortization schedule. A 30-year $400,000 mortgage has a
fixed mortgage rate of 4 percent. In the first month, the total
mortgage payment is $____, and $____ of this amount represents
payment of interest. In the second month, the principal repayment
is $_____.
Select one:
A. 1,910; 1,331; 577
B. 1,910; 1,333; 579
C. 1,928; 1,412; 518
D. 1,928; 1,414; 514

Robert and Rebecca Richardson have just signed a 30-year, 4%
fixed rate mortgage for $320,000 to buy their house. Find out this
couple's monthly mortgage payment by preparing a loan amortization
schedule for the Richardson’s for the first 2 months; find out how
much of their payments applied to interest; and after 2 payments,
how much of their principal will be reduced.
(Please construct a loan amortization schedule and show your
calculations).

Consumer finance:
Four years ago you bought a home using a 15-year mortgage. The
mortgage had an interest rate of 6% (or 0.50% per month) and the
original loan amount was $230,000. Your monthly payments (ignoring
escrow payments) are $1,940.87. Today you have 132 monthly payments
remaining. You got a bonus at work (or a gift or something) so in
addition to you next monthly payment you will send in $6,000 to
reduce the principal on the loan.
A. What...

Suppose you have decided to buy a house. The mortgage is a
30-year mortgage with an interest rate of 7%, compounded monthly.
You borrow a total of $250,000. Given this, by the time you pay off
the loan, how much in total (interest + principal) would the house
cost you?

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...

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