A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the remaining period of 8 years. The interest rate was fixed at 3.02% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. b. If the monthly payments were set at $636, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $636, calculate the size of the final payment.

A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the remaining period of 8 years. The interest rate was fixed at 3.02% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. b. If the monthly payments were set at $636, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $636, calculate the size of the final payment.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
A mortgage for a condominium had a principal balance of $43,800 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 4.52% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. b. If the monthly payments were set at $845, by how much would the time period of the mortgage shorten? c. If the monthly payments were set at $845, calculate the size of the final payment.
A mortgage for a condominium had a principal balance of $42,600 that had to be amortized over the remaining period of 4 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. Round up to the next whole number b. If the monthly payments were set at $1,139, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $1,139, calculate the size of the final payment. Round to the nearest cent
The balance on a mortgage was $42,600 and an interest rate of 4.25% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly payments were set at $1,412, how long would it take to pay off the mortgage? Express the answer in years and months, rounded to the next payment period (C). If the monthly payments were set at $1,412, calculate the size of the final payment.
The balance on a mortgage was $41,000 and an interest rate of 3.75% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly payments were set at $1,306, how long would it take to pay off the mortgage? years months Express the answer in years and months, rounded to the next payment period c. If the monthly payments were set at $1,306, calculate the size of the final payment. Round to the nearest cent
A mortgage balance of $ 29,000 is to be repaid over a 10-year term by equal monthly payments at 5.5% compounded semi annually. At the request of the mortgagor, the payments were set at $400 (a) How many payments will the mortgagor have to make? (b) What is the size of the last payment? (c) Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the total actual amount paid.
The balance on a mortgage was $48,200 and an interest rate of 4.50% compounded semi-annually was charged for the remaining 5-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. b. If the monthly payments were set at $998, how long would it take to pay off the mortgage? c. If the monthly payments were set at $998, calculate the size of the final payment.
A mortgage balance of $23,960 is to be repaid over a 7-year term by equal monthly payments of 6.8% compounded semiannually. At the request of the mortgagor, the monthly payments were set at $440. How many payments will the mortgagor have to make? What is the size of the last payment? Determine the difference between the total actual amount paid through $440 payments and the total amount required through normal amortization at 6.8% to amortize the mortgage by the contractual monthly payments.
The monthly payments for the first three-year term of a $250,000 mortgage loan were based on a 25-year amortization period. The interest rate on the mortgage was 3.4% compounded semiannually. 1. What was the size of the monthly payment? 2. What was the principal balance at the end of the three-year term? 3. What would be the size of the monthly payment upon renewal at 3.8 % compounded semiannually now amortized over 22 years?
Consider a home mortgage of $225,000 at a fixed APR of 3% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at an annual interest rate of 4.24%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? _____ (b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) _____$ (c) If the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change?
A mortgage of $161000 is to be repaid by making payments of $1191 at the end of each month. if interest is 3.62% per annum compounded semi-anually what is the term of the mortgage? State your answer in years and months (from 0 to 11 months).