A variate rate mortgage of $200,000 is arranged with an annual rate of 5%. The loan is to be fu amortized in 25 years. The term is 5 years. What is the compounding frequency of the mortgage
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- Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?The maturity of the balloon loan is 5 years, amortization period is 30 years, loan amount is $85,000 with annual interest rate 4.5% and monthly payments. What is the monthly payment for this balloon mortgage? What is the balloon payment at the end of five years for this balloon mortgage?The adjustable rate mortgage is for 15 years with monthly payments. Loan amount is $120,000. During the first 8 years, the annual mortgage rate is 5%, while during the last 7 years, the rate is 12%. What is the monthly mortgage payment during the last 7 years (rounded to the nearest dollar)?
- A $190,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 6.5% compounded semi-annually for a 3-year term. If the mortgage is renewed for a 5-year term at 7.25% compounded semi-annually, what is the size of the monthly payment for the renewal term?A fully amortizing mortgage is made for $112,000 at 6.5 percent interest. Required: If the monthly payments are $1,060 per month, when will the loan be repaid? (Round up your answer to the nearest whole number)A $230,000 mortgage has a stated annual rate of 4.5% on a 30 year loan. How much interest is paid over the life of the loan?
- A floating rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $800. What will be the loan balance at the end of year 1?An interest-only mortgage is made for $94,000 at 6 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization. Required: a. What will the monthly payments be? b. What will be the loan balance after five years? c. If the loan is repaid after five years, what will be the yield to the lender? d. Instead of being repaid after five years, what will be the yield if the loan is repaid after 10 years?A $230,000 mortgage has a stated annual rate of 4.5% on a 30 year loan. What is the monthly payment?