Question

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

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
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 take out a 20-year loan in the amount of $450,000 at a 4 percent annual...
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...
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***
You are offered a 30-year fixed-rate mortgage on your dream home costing $350,000 at an APR...
You are offered a 30-year fixed-rate mortgage on your dream home costing $350,000 at an APR of 6% compounded monthly. You will make 360 monthly payments, but your first payment will not be due until Month 4 (Months 1-3 are part of a grace period where interest is still compounded but no payments are due). The final payment will therefore be due at the end of Month 363. a) What will be the value of your equal monthly payments (don't...
David and Debi Davidson have just signed a 30-year, 4% fixed-rate mortgage for $360,000 to buy...
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...
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....
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...
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...
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...
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT