Question

Ali purchased a house for $450,000. He made a down payment of 15.00% of the value of the house and received a mortgage for the rest of the amount at 6.22% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 5 year period.

**a.** Calculate the monthly payment amount.

Round to the nearest cent

**b.** Calculate the principal balance at the end
of the 5 year term.

Round to the nearest cent

**c.** Calculate the monthly payment amount if the
mortgage was renewed for another 5 years at 5.52% compounded
semi-annually?

Round to the nearest cent

Answer #1

Ali purchased a house for $450,000. He made a down payment of
15.00% of the value of the house and received a mortgage for the
rest of the amount at 6.22% compounded semi-annually amortized over
20 years. The interest rate was fixed for a 5 year period.
a. Calculate the monthly payment amount.
Round to the nearest cent
b. Calculate the principal balance at the end
of the 5 year term.
Round to the nearest cent
c. Calculate the monthly...

Lucy purchased a house for $400,000. She made a down payment of
25.00% of the value of the house and received a mortgage for the
rest of the amount at 4.62% compounded semi-annually amortized over
20 years. The interest rate was fixed for a 5 year period.
a. Calculate the monthly payment amount.
b. Calculate the principal balance at the end
of the 5 year term.
c. Calculate the monthly payment amount if the
mortgage was renewed for another 5...

Lionel purchased a house for $475,000. He made a downpayment of
25.00% of the value of the house and received a mortgage for the
rest of the amount at 5.82% compounded semi-annually amortized over
20 years. The interest rate was fixed for a 4 year period.
a. Calculate the monthly payment amount.
b. Calculate the principal balance at the end
of the 4 year term
c. Calculate the monthly payment amount if the
mortgage was renewed for another 4 years...

The Turners have purchased a house for $170,000. They made an
initial down payment of $40,000 and secured a mortgage with
interest charged at the rate of 10%/year compounded monthly on the
unpaid balance. The loan is to be amortized over 30 yr. (Round your
answers to the nearest cent.)
(a) What monthly payment will the Turners be required to
make?
(b) How much total interest will they pay on the loan?
(c) What will be their equity after 10...

The Taylors have purchased a $200,000 house. They made an
initial down payment of $30,000 and secured a mortgage with
interest charged at the rate of 7%/year on the unpaid balance.
Interest computations are made at the end of each month. If the
loan is to be amortized over 30 years, what monthly payment will
the Taylors be required to make? (Round your answer to the nearest
cent.)
$
What is their equity (disregarding appreciation) after 5 years?
After 10...

The Taylors have purchased a $220,000 house. They made an
initial down payment of $30,000 and secured a mortgage with
interest charged at the rate of 6%/year on the unpaid balance.
Interest computations are made at the end of each month. If the
loan is to be amortized over 30 years, what monthly payment will
the Taylors be required to make? (Round your answer to the nearest
cent.)
$1139.14
What is their equity (disregarding appreciation) after 5 years?
After 10...

A $95,000 a mortgage is to be amortized by making monthly
payments for 20 years. Interest is 7.4% compounded semi-annually
for a five-year term.
(a)
Compute the size of the monthly payment.
(b)
Determine the balance at the end of the five-year term.
(c)
If the mortgage is renewed for a five-year term at 7%
compounded semi-annually, what is the size of the monthly payment
for the renewal term?
(a) The size of the monthly payment is $__.
(Round the...

Amortization: Barney and Betty buy a house for $450,000. They
pay 15% down and finance the rest at 4.35% using a 20-year
mortgage.
How much money are they putting down?
What is their monthly mortgage payment?
How much interest will they have paid in the first 10-years of
owning the house?
How much principal will they have paid in the first 10-years of
owning the house?
at the end of 10 years what is their remaining balance?

Mr. Wilson’s house was purchased for $280,000 five years ago and
is worth $300,000 now, and his mortgage was $ 260,000 and amortized
over 25 years, at four percent interest, compounded semi-annually,
what is his equity in his house now? (To the nearest $1000) (Show
your calculations—You must assume monthly mortgage payment
frequency; hint, and use amortization schedule)

A $85,000 mortgage is to be amortized by making monthly
payments for 15 years. Interest is 3.3% compounded semi-annually
for a seven-year term.
(a)
Compute the size of the monthly payment.
(b)
Determine the balance at the end of the seven-year
term.
(c)
If the mortgage is renewed for a seven-year term at 3%
compounded semi-annually, what is the size of the monthly payment
for the renewal term

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