(a) Determine the monthly payment amount assuming an effective interest rate of 1.8% per annum. (b) After having made 5 years of payments the family takes out a new mortgage with an effective interest rate of 6% per annum for the remaining 15 years. Payments are made monthly in arrears. Determine the new monthly payment amount. (c) If the family would have originally agreed to make monthly instalments of £2,000 paid at the beginning of each month starting on 1.1.2022, when would they have paid off the loan? Assume an effective interest rate of 1.8% per annum throughout.

(a) Determine the monthly payment amount assuming an effective interest rate of 1.8% per annum. (b) After having made 5 years of payments the family takes out a new mortgage with an effective interest rate of 6% per annum for the remaining 15 years. Payments are made monthly in arrears. Determine the new monthly payment amount. (c) If the family would have originally agreed to make monthly instalments of £2,000 paid at the beginning of each month starting on 1.1.2022, when would they have paid off the loan? Assume an effective interest rate of 1.8% per annum throughout.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Part 4 (Chapter 14): Hassan and Dana had bought a property valued at $1,225,000 for 20% down and a mortgage amortized over 25 years on March 1, 2018. They made equal end-of-month payments towards their mortgage. Interest on the mortgage was 3.29% compounded semi-annually and the mortgage was renewable after five years. 9. What was the size of each monthly payment? 10. What is the cost of the mortgage for the first 5 years? 11. In November 2020, they decided to refinance their mortgage since rates were down by quite a lot. Suppose the new rate they qualified for was 1.74% compounded semi-annually and they could borrow enough to cover their remaining mortgage balance. The new mortgage is amortized over 25 years, but they also need to pay a penalty for breaking the old mortgage early. If the penalty is the interest differential over the remaining term of the old mortgage (under the old and the new rates), and if the penalty is also added to the new mortgage, what is the size of their new…
Armita takes out a 3 year mortgage for $1,075,000 at an interest rate of i(26) = 8.875%. The amortization period is 20 years and she will make bi-weekly payments. What is the outstanding balance at the end of 1 year? a. $1,054,602.46 b. $1,044,056.44 c. $970,234.27 d. $1,022,964.39 e. $991,326.31
Ife takes out a 3 year mortgage for $1,125,000 at an interest rate of i(2) = 4.500%. The amortization period is 30 years and she will make weekly payments. What is the outstanding balance at the end of 1 year? O a. $1,084,582.78 O b. $1,106,717.12 O c. $1,029,246.92 O d. $1,040,314.09 e. $1,128,851.46
Jack takes out a mortgage for $725,000 at an interest rate of i(2) = 7.250%. The amortization period is 30 years. What is his weekly payment? a. $1,182.96 b. $1,126.62 C. $923.83 d. $1,171.69 e. $957.63
1. Jason and Coretta agreed to pay $559,000 for a four-bedroom colonial home with a $70,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.How much is their monthly payment? Monthly payment $ Complete the table for the breakdown of the first payment. Portion to --- Payment number 1 Interest $_______________ Principal $______________ Balance of loan outstanding $________________________
Mr. and Mrs. Smith have taken out a mortgage loan of $250,000.00 from a bank at 6% APR for a fixed 15 years. How much will their monthly payment be? $1999.24 $2016.94 $2019.25 O $2109.64
b.ZULU Mortgagors offers houses for sale on mortgage terms of 50% down payment of the property value and balance amortized over a four year period. Assuming you purchased a house valued at K450, 000,000 and paid the 50% down initial amount agreeing to pay the balance in four equal annual installments that include principle and 8.2% interest. Calculate the annual installment and draw the amortization schedule for this loan.
Assume Jenny took out a $400,000 mortgage to pay for her new house. The mortgage rate is 5.7%. It is a 25-year monthly constant payment, fully amortized mortgage. Find the balance at the end of year 12. Group of answer choices $124,508.1 $226,786.2 $275,492.6 $236,119.6
Question 6: Chetan is purchasing a home for $670,000. RBC has approved his loan application for a 25- year fixed rate loan at 5% annual interest. If Chetan pays 10% of the purchase price as down payment, calculate his monthly mortgage payment. If his annual property taxes are $1,560 and his annual homeowner's insurance is $720, calculate the total PITI payment for his loan.
A family has a $124,001 15-year mortgage at 4.8% compounded monthly (A) find the monthly payment and total interest paid (B) suppose the family decides to add an extra $100 to its mortgage payment each month starting with the very first payment. How long will it take the family to pay off the mortgage? How much interest will the family save? (A) monthly payment $ total interest paid $ (B) Time: (round 2 decimal places) Total interest saved $
Question # 3: David is buying a house for $256,000. To obtain the mortgage, David is required to make a 20% down payment. David obtains a 30-year mortgage with an interest rate of 6.15%. a.) Determine the amount of the required down payment. b.) Determine the amount of the mortgage (loan amount). c.) Determine the monthly payment. d.) Determine the total amount of interest paid on this mortgage.
Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 O b) $102,000 O c) $174,000 d) $198,000 e) $205,000

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