" 10 1 2 13 14 15 16 17 18 19 20 Suppose you purchased a house 3 years ago and took out a mortgage for $200,000 with a 7.5% interest rate. The mortgage is a 30 year mortgage with monthly payments. Today you can refinance the loan at a 6.5% interest rate for a fee of $7,500. Assume that you would only refinance enough to repay the old loan and the cost of refinancing. Initial Loan Refinancing Annual Rate Life (In Years) Loan Amount $ 200,000.00 PV (of monthly payments) NPV of Refinancing Refinance? 7.50% 6.50% A- If you refinance by taking a new 30 year loan at the new rate, how much will you save per month? Monthly Savings B-Should you refinance today? 30 30 Initial Loan Monthly Payments Refinance. Periods Paid 36 0 Cost $ $ 7,500.00 Tip: Use the best interest rate available to you to determine the PV.

" 10 1 2 13 14 15 16 17 18 19 20 Suppose you purchased a house 3 years ago and took out a mortgage for $200,000 with a 7.5% interest rate. The mortgage is a 30 year mortgage with monthly payments. Today you can refinance the loan at a 6.5% interest rate for a fee of $7,500. Assume that you would only refinance enough to repay the old loan and the cost of refinancing. Initial Loan Refinancing Annual Rate Life (In Years) Loan Amount $ 200,000.00 PV (of monthly payments) NPV of Refinancing Refinance? 7.50% 6.50% A- If you refinance by taking a new 30 year loan at the new rate, how much will you save per month? Monthly Savings B-Should you refinance today? 30 30 Initial Loan Monthly Payments Refinance. Periods Paid 36 0 Cost $ $ 7,500.00 Tip: Use the best interest rate available to you to determine the PV.

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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A house is being purchased for $138,000.00.$138,000.00. The 3030-year mortgage has a 10%10% down payment, an interest rate of 4.875%4.875%, and a PMI payment of $25.88$25.88 each month for 7777 months. The yearly taxes are $2400.00$2400.00, and the insurance is $750.00$750.00 per year, which is to be placed into an escrow account. What is the total cost of the loan? Round your answer to the nearest $100.00$100.00. Enter a number, such as $123,500.00.
Q18 Say that you purchase a house for $206,000 by getting a mortgage for $185,000 and paying a $21,000 down payment. If you get a 25-year mortgage with an interest rate of 6 percent, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)PAYMENT? What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.)LOAN BALANCE? If the house appreciates at 2 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)FUTURE VALUE? How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Equity?
suppose you want to buy a new car that costs you 11284 OMR by a loan from bank Muscat for 6 years. the bank charges you 4.004 percent on your loan. what is the annual payment should you pay to the bank every year on your loan? Select one: a. 1807.91 b. 2152.84 c. 59144.52 d. 2660.41 e. None of the options
suppose you want to buy a new car that costs you 11993 OMR by a loan from bank Muscat for 6 years. the bank charges you 4.004 percent on your loan. what is the annual payment should you pay to the bank every year on your loan? Select one: a. 2827.57 b. 62860.71 c. None of the options d. 2288.11 e. 1921.51
4. I just borrowed $267,000 at 2.125%for 15-years.My lender is looking to sell my loan and the market rate of interest is 1.53%.What is the market value of my loan assuming that it is repaid with a lump sum after 72 regular payments?
A. A man having a debt of ₱2000.00 agrees to pay it at the end of 7 years. At due, he must pay a sum with an interest of ₱750.00. What is the agreed rate of interest compounded quarterly? Ans: 4.58% B. A laptop from an online shop will cost ₱3000.00 if agreed terms is 10% compounded quarterly for a year. What is the cash price today of the calculator? Ans: ₱2717.85
You Borrowed $150,000 to for a period of 15 years at fixed APR of 6% to buy a house. How much is your total payments over 15 years for this loan. Use 6 digits after decimal when calculating. But give your final answer with 2 digits after decimal. choose the closet answer to yours choices 198756.43 227841.17 179459.38
1. Answer: 3493.4 need help with work!!!! A house has an assumable $120,000 below-market loan at 8.5 percent for a remaining term of 15 years. Current rates are 9 percent for 15-year mortgages. All else equal, how much more is a buyer willing to pay for the house with the assumable loan in place?
A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years. 1. What is the monthly payment? 2. What is the current loan balance? 3. Assume this is homeowner has been offered a chance for refinance for the amount at the current balance for 22 years at 10.5% interest rate. What is the monthly payment if the homeowner chooses to refinance? 4. If the origination fees and closing costs are $25,500, and the costs are not financed by the lender. What is the effective cost of refinancing? Should this homeowner refinance? 5. If this homeowner plans to sell the house in 5 years, should this homeowner refinance (show your answer with the effective annual rate)? use excel to get the answers and show the formulas
You purchase a house for $188,938.00. You made a down payment of 20,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30-year mortgage with an annual interest rate of 5.64%. Mortgage payments are made monthly. What is the monthly amount of your mortgage payment?
ou have just purchased a home by borrowing \$400,000$400,000 for 30-years at a fixed APR of 3.87\%3.87%. What is the monthly mortgage payment? (Hint: A mortgage is just an annuity where the borrowed amount is the present value of the annuity. So, use the annuity formula, but solved for the cash flow in terms of the present value: CF = PV x R/k /(1-(1+R/K)(-txk)
Farmer Ty needs to finance a machinery purchase of $70,000. His lender requires a down payment of 25%. He will repay the loan in seven annual payments. The annual interest rate is 7%. The amortization factor for a 7-year, 7% loan is 0.18555. Assuming he repays the loan using the constant payment method, what will the outstanding balance on the loan be at the end of year four (approximately)? a. $32,997 b. $17,614 c. $46,434 d.

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