Question

You are a financial advisor and your customer Jerry wants to buy a condo with a...

You are a financial advisor and your customer Jerry wants to buy a condo with a 30 year mortgage. Jerry's monthly payment will be $3k and the interest rate is 0.003% per month. What is the price of his condo?

Homework Answers

Answer #1

If the interest rate per month is 0.003% So the annual rate is 0.003% x 12 = 0.036%

We are given the following information:

Payment PMT 3000.00
Rate of interest r 0.04%
Number of years n 30.00
Annual frequency 12.00
Loan amount or the Price of a Condo PV To be calculated

We need to solve the following equation to arrive at the required PV

So the PV or the Price of the Condo is 1,074,172.91

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
CONTEXT You would like to buy a $320,000 condo in downtown Colorado Springs. If the bank...
CONTEXT You would like to buy a $320,000 condo in downtown Colorado Springs. If the bank will require you to provide a 20% down payment, what will be the monthly payment on the 30yr mortgage, if the mortgage interest rate is 4.800%(M)? ANS: 1343.14 NEED HELP WITH 24 24. Regarding your condo, five years go by. The condo appreciated 3% each year. What is the value of your home equity?
suppose you are buying your first condo for 145,000 and you will make $15,000 down payment....
suppose you are buying your first condo for 145,000 and you will make $15,000 down payment. you have arranged to finnace the remainder with a 30 year monthly payment amortized mortgage at a 55 nominal interest rate with first payment due in one month what will your monthly payments be? how much of first month payment is the prindipal
Suppose you are buying your first condo for $145,000, and you will make a $15,000 down...
Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? a. $741.57 b. $780.60 c. $821.69 d. $862.77 e. $905.91 Record all functions necessary to solve the problem with a financial calculator. (Why is "C" the correct answer?)
Suppose you are buying your first condo for $440,000, and you will make a $30,000 down...
Suppose you are buying your first condo for $440,000, and you will make a $30,000 down payment. You have arranged to finance the remainder with a 30-year, amortized mortgage at a 5.4% interest rate. You will make monthly payments with the first payment due in one month. Assuming that the sellers accept the offer, what will your monthly payments be? Do this on excel.
2. Jerry and Katrina took out a 30-year, $360,000 mortgage on their 2800-square-foot house. The mortgage...
2. Jerry and Katrina took out a 30-year, $360,000 mortgage on their 2800-square-foot house. The mortgage rate is 0.4% per month so their payments are $1888.80 per month. How much would they still owe on their mortgage immediately after making their 220th monthly payment? 3. Sue is planning to buy a house. She has been advised by her financial planner that her monthly house payment (which includes property taxes and insurance) should not exceed 30% of her take-home pay. Currently,...
You borrow $125,000 to buy a house. Your mortgage rate is 6% per year (0.5% per...
You borrow $125,000 to buy a house. Your mortgage rate is 6% per year (0.5% per month). The term of the mortgage is 30 years and you will have the same required payment every month. Ignore taxes. (i) What is your monthly mortgage payment? (ii) After 30 months of payments, what is the remaining balance on your mortgage? (iii) For the first 30 months you make the required payment. Beginning in the 31st month you pay an extra $100 per...
12. you are borrowing $1 million to buy your dream home, taking a 30 -year mortgage...
12. you are borrowing $1 million to buy your dream home, taking a 30 -year mortgage at 6% per year and undertaking to make equal monthly payments at the end of each month for 30 years to amortize the loan. What is your monthly payment, interest portion of your first payment and principal portion of your first payment?
Suppose you bought a condo for $100,000 financing it with a $20,000 down payment of your...
Suppose you bought a condo for $100,000 financing it with a $20,000 down payment of your own funds and an $80,000 mortgage loan from a bank. (10 point) Now assume that, instead of (a), you only put down $10,000 and borrowed $90,000 to buy the condo. Assuming that the market value of your house has risen to $120,000 and ignoring interest and other costs, calculate your rate of return on your asset (ROA) and your rate of return on equity...
Billy McMahon is interested in buying a waterfront condo and has saved $100,000 for the down...
Billy McMahon is interested in buying a waterfront condo and has saved $100,000 for the down payment. His plans call for making additional monthly deposits into an investment account over the next 36 months. Billy McMahon wants to make the purchase 48 months from today and wants to have $180,000 saved up for the down payment. What is the amount of each of the additional payments he must make for his plan to work out?   Assume Billy can earn 2%...
Dave has owned his condo for 10 years. He paid $200,000 for the condo, and put...
Dave has owned his condo for 10 years. He paid $200,000 for the condo, and put down 20%. The interest rate was 4% for a 30-year mortgage loan. What is his loan payoff amount in 2020?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT