Question

Joe Levi bought a home in Arlington, Texas, for $148,000. He put down 30% and obtained a mortgage for 30 years at 5.00%. (Use Table 15.1.) a. What is Joe’s monthly payment? (Round your intermediate values and final answer to the nearest cent.) b. What is the total interest cost of the loan? (Use 360 days a year. Round your intermediate values and final answer to the nearest cent.)

Answer #1

1. Joe Levi bought a new home in Arlington, Texas for $140,000.
He put down 20% and has two options. At bank A he can get a 30 year
mortgage at 5.5% and at bank B he can get a 30 year mortgage for
7.5%. He would save $ ________ in total interest by choosing bank
A. His monthly payment would be $ ______ lower by choosing bank
A.

2. Joe Levi bought a new home in Arlington, Texas for $140,000.
He put down 20% and has two options. At bank A he can get a 30 year
mortgage at 5.5% and at bank B he can get a 15 year mortgage for
5.5%. He would save $ _______ in total interest by choosing bank B.
His monthly payment would be $ ________ lower by choosing bank
A.

Tom Burke bought a home in Virginia for $214,000. He put
down 20% and obtained a mortgage for 25 years at 9%. What is Tom’s
monthly payment and the total interest cost of the
loan

Melvin Indecision has difficulty deciding whether to put his
savings in Mystic Bank or Four Rivers Bank. Mystic offers 10%
interest compounded semiannually. Four Rivers offers 8% interest
compounded quarterly. Melvin has $10,000 to invest. He expects to
withdraw the money at the end of 4 years.
Which bank gives Melvin the better deal? Check your answer.
Use the attached excel sheet to prepare Sue’s bank
reconciliation.
Problem 12-15: Which bank gives Melvin the better deal?
MYSTIC BANK
Table 12-1...

Suppose you want to purchase a home for $525,000 with a 30-year
mortgage at 4.24% interest. Suppose also that you can put down 25%.
What are the monthly payments? (Round your answer to the nearest
cent.)
What is the total amount paid for principal and interest? (Round
your answer to the nearest cent.)
What is the amount saved if this home is financed for 15 years
instead of for 30 years? (Round your answer to the nearest
cent.)

Harriet Marcus is concerned about the financing of a home. She
saw a small cottage that sells for $45,000. Assuming that she puts
20% down, what will be her monthly payment and the total cost of
interest over the cost of the loan for each assumption? (Use the
Table 15.1(a) and Table 15.1(b)). (Round intermediate
calculations to 2 decimal places. Round your final answers to the
nearest cent.)
Monthly payment
Total cost of interest
a.
25 Years, 11.5%
$
$...

Brandon bought a home exactly 15 years ago. He financed $210,000
at 4.8% over 30 years. His monthly payment is $1,101.80. Calculate
Brandon's current mortgage balance.
Round to nearest dollar and do NOT use a dollar sign.

The Martinezes are planning to refinance their home (assuming
that there are no additional finance charges). The outstanding
balance on their original loan is $200,000. Their finance company
has offered them two options:
Option A: A fixed-rate mortgage at an interest rate of
6.5% per year compounded monthly, payable over a 30-year period in
360 equal monthly installments.
Option B: A fixed-rate mortgage at an interest rate of
6.25% per year compounded monthly, payable over a 15-year period in
180...

Consider a home mortgage of $150,000 at a fixed APR of 6% for
30 years.
-. Calculate the monthly payment.
-. Determine the total amount paid over the term of the
loan.
- Of the total amount paid, what percentage is paid toward the
principal and what percentage is paid for interest.
a. The monthly payment is what?
(Do not round until the final answer. Then round to the nearest
cent as needed.)
b. The total amount paid over the...

Daniel and Jan agreed to pay $553,000 for a four-bedroom
colonial home in Waltham, Massachusetts, with a $70,000 down
payment. They have a 30-year mortgage at a fixed rate of 6.00%.
a.
How much is their monthly payment? (Do not round
intermediate calculations. Round your answer to the nearest
cent.)
b.
After the first payment, what would be the balance of the
principal? (Do not round intermediate calculations. Round
your answers to the nearest cent.)Payment number
Portion to—
Balance of...

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