Question

Sarah secured a bank loan of $195,000 for the purchase of a house. The mortgage is...

Sarah secured a bank loan of $195,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 5 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.) $

Homework Answers

Answer #1

PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]
C = Cash flow per period
i = interest rate
n = number of payments
195000= Cash Flow*((1-(1+ 3/1200)^(-15*12))/(3/1200))
Cash Flow = 1346.63 = installment
PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]
C = Cash flow per period
i = interest rate
n = number of payments
PV= 1346.6342*((1-(1+ 3/1200)^(-10*12))/(3/1200))
PV = 139459.8 = amount left after 5 years
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
Sarah secured a bank loan of $195,000 for the purchase of a house. The mortgage is...
Sarah secured a bank loan of $195,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.)
Sarah secured a bank loan of $195,000 for the purchase of a house. The mortgage is...
Sarah secured a bank loan of $195,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.)
Joe secured a loan of $13,000 four years ago from a bank for use toward his...
Joe secured a loan of $13,000 four years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 5%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 15 years at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $...
The Turners have purchased a house for $170,000. They made an initial down payment of $40,000...
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...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $25,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.1%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $19,000 at a rate of 4.1%/year compounded monthly. Her bank is now charging 6.4%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a...
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $24,000 at a rate of 8%/year compounded monthly. Her bank is now charging 11.5%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 yr for each loan. How much less will she have...
Lupé made a down payment of $8000 toward the purchase of a new car. To pay...
Lupé made a down payment of $8000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 5%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $440/month for 36 months. What is the cash price of the car? (Round your answer to the nearest cent.)
Shirley Trembley buys a house for $183,800. She puts 20% down and obtains a simple interest...
Shirley Trembley buys a house for $183,800. She puts 20% down and obtains a simple interest amortized loan for the balance at 11 3/8 % interest for thirty years. Ten years and six months later, she sells her house. Find the unpaid balance on her loan. (Round your answer to the nearest cent.)
The Taylors have purchased a $200,000 house. They made an initial down payment of $30,000 and...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT