Question

This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The...

This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The loan is to be repaid in equal monthly payments over 20 years with the first payment due one month from today. Assume each month is equal to 1/12 of a year and all taxes and insurance premiums are paid separately. How much of the second payment applies to the principal balance?

Please do not use excel

$714.43
$721.14
$658.56
$743.38

$756.70
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
you borrowed $500,000 to buy a house. The mortgage rate s 24% (APR, monthly). The loan...
you borrowed $500,000 to buy a house. The mortgage rate s 24% (APR, monthly). The loan is to be repaid in equal monthly payments over 30 years. 29 years has passed. How much you owe to the bank on your home (loan principal) since you have 1 year left from your mortgage? Assume that each month is equal to 1/12 of a year.
You borrow $185,000 to buy a house. The mortgage interest rate is 7.5 percent and the...
You borrow $185,000 to buy a house. The mortgage interest rate is 7.5 percent and the loan period is 30 years. Payments are made monthly. What is your monthly mortgage payment? $1,293.55 $953.70 $1,083.78 $1,153.70 $1,398.43
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly...
3. You take a $500,000 mortgage to buy a vacation home. The mortgage entails equal monthly payments for 10 years, 120 payments in all, with the first payment in one month. The bank charges you an interest rate of 9.6% (APR with monthly compounding). a. How much of your first payment is interest, and how much is repayment of principal? b. What is the loan balance immediately after the 10th payment? (Calculate the loan balance using the annuity formula.) c....
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage...
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments. Find the value of the mortgage on their house? Find the value of the monthly payment? Find the loan outstanding after making 20 payments? Find the principal repaid in the 21st payment?
You borrow 410,000 to buy a home using a 30-year mortgage with an interest rate of...
You borrow 410,000 to buy a home using a 30-year mortgage with an interest rate of 3.75 percent and monthly payment. After making your monthly payments on time for exactly 6 years calculate your loan balance. Disregard property taxes and mortgage insurance.
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...
1.) You want to buy a house in Hermosa Beach CA, but you can only afford...
1.) You want to buy a house in Hermosa Beach CA, but you can only afford to make monthly payments of $7,100. The interest rate on mortgages right now is 4.25% p.a. with monthly compounding (APR), fixed for 30 years, with monthly payments. You have $155,000 saved to use as a downpayment. What is the most that you can afford to pay for a house (ignoring closing costs, property taxes, etc..)? Answer: $1,598,265.76 2.) Under the same assumptions described in...
John borrowed $125,000 to buy a house. His loan cost was 11% and he promised to...
John borrowed $125,000 to buy a house. His loan cost was 11% and he promised to repay the loan in 15 equal annual payments. How much principal is amortized with the first payment? $17, 383 $13,750 $3,633 $121,367
17 years ago you borrowed $174134 to buy a house. The interest rate quoted to you...
17 years ago you borrowed $174134 to buy a house. The interest rate quoted to you was 7.6 percent for 30 years with monthly payments. Assuming you have made regular monthly payments up to now, what is the amount (in $) you still owe on the loan today?
You are about to buy a million dollar house with a 20 percent down payment. The...
You are about to buy a million dollar house with a 20 percent down payment. The mortgage has 5 percent stated annual interest rate, compounded monthly, and calls for equal monthly payments over the next 30 years. The first payment is due one month from now. What is your monthly mortgage payment? I know the answer si 4294.57 but I am having trouble understanding the second part of the question The mortgage terms require that at the end of year...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT