Question

You take a fixed-rate, amortizing, 7-year loan to buy a car. The loan amount is $130,000, the APR is 4%. Payment is expected at the end of each month. What will the mortgage balance be right after you make your 45th payment assuming all payments were made on time and no prepayments were made? Round your answer.

a. 64,884

b. 76,843

c. cannot be determined

d. 84,648

e. 50,038

Answer #1

You need a 25-year, fixed-rate mortgage to buy a new home for
$190,000. Your mortgage bank will lend you the money at a 9.1
percent APR for this 300-month loan. However, you can afford
monthly payments of only $800, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
How large will this balloon payment have to be for you to keep
your monthly payments at...

You need a 20-year, fixed-rate mortgage to buy a new home for
$220,000. Your mortgage bank will lend you the money at a 6.6
percent APR for this 240-month loan. However, you can afford
monthly payments of only $950, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
How large will this balloon payment have to be for you to keep
your monthly payments at...

You need a 25-year, fixed-rate mortgage to buy a new home for
$240,000. Your mortgage bank will lend you the money at a 6.1
percent APR for this 300-month loan. However, you can afford
monthly payments of only $800, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Required: How large will this balloon payment have to be for you
to keep your monthly payments...

You need a 25-year, fixed-rate mortgage to buy a new home for
$250,000. Your mortgage bank will lend you the money at a 7.1
percent APR for this 300-month loan. However, you can afford
monthly payments of only $900, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Required:
How large will this balloon payment have to be for you to keep
your monthly payments...

You need a 15-year, fixed-rate mortgage to buy a new home for
$220,000. Your mortgage bank will lend you the money at a 7.6
percent APR for this 180-month loan. However, you can afford
monthly payments of only $950, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
How large will this balloon payment have to be for you to keep
your monthly payments at...

You need a 20-year, fixed-rate mortgage to buy a new home for
$230,000. Your mortgage bank will lend you the money at a 8.1
percent APR for this 240-month loan. However, you can afford
monthly payments of only $850, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Required:
How large will this balloon payment have to be for you to keep
your monthly payments...

You need a 20-year, fixed-rate mortgage to buy a new home for
$180,000. Your mortgage bank will lend you the money at a 6.6
percent APR for this 240-month loan. However, you can afford
monthly payments of only $950, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment. Required: How large will this balloon
payment have to be for you to keep your monthly payments...

You need a 20-year, fixed-rate mortgage to buy a new home for
$190,000. Your mortgage bank will lend you the money at a 8.6
percent APR for this 240-month loan. However, you can afford
monthly payments of only $950, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
How large will this balloon payment have to be for you to keep
your monthly payments at...

You need a 30-year, fixed-rate mortgage to buy a new home for
$265,000. Your mortgage bank will lend you the money at an APR of
5.6 percent for this 360-month loan. However, you can only afford
monthly payments of $1,050, so you offer to pay off any remaining
loan balance at the end of the loan in the form of a single balloon
payment.
How large will this balloon payment have to be for you to keep
your monthly...

A bank recently loaned you $14,015.00 to buy a car. The loan is
for 4 years in is fully amortized. The nominal rate on the loan is
11%, and payments are made at the end of each month. What will be
the remaining balance on the loan after you make payment number
25?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 20 minutes ago

asked 22 minutes ago

asked 26 minutes ago

asked 32 minutes ago

asked 35 minutes ago

asked 36 minutes ago

asked 37 minutes ago

asked 40 minutes ago

asked 40 minutes ago