Andy takes out a 15-year mortgage of 125000 dollars to purchase a home. Ifthe interest rate is 6.9 percent convertible monthly, how much is hismonthly payment?Answer =dollars.

125000Loan amount (PV) = $ 125000 125000 Number of monthly payments (M) = 180 Annual interest rate =…

Answered: Andy takes out a 15-year mortgage of…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
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?
Greg borrows $881,000 to buy a house. His mortgage requireds 22 years of monthly payments, with the first payment due one month after the purchase date, and an annualized interest rate of 5.4%. If Greg decides to completely pay off the loan as soon as he makes payment #36, how much does he owe the bank? Assume he has made all payments on time leading up to this point. Enter your answer as a positive number, and round to the nearest dollar.
Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is for 25 years. How much will his annual payments be? (Although home payments are usually on a monthly basis, we shall do our analysis on an annual basis for ease of computation) 2.How much interest will he pay over the life of the loan (for 25 years)? 3.How much should he be willing to pay to get out of a 14 percent mortgage and into a 10 percent mortgage with 25 years remaining on the mortgage? Assume current interest rates are 10 percent. Carefully consider the time value of money.
John House has taken a $150,000 mortgage on his house at an interest rate of 6% per year. If the mortgage calls for thirty equal annual payments, what is the amount of each payment?
Paul obtains a 30-year loan at an annual 7.4% on a $250,000 house where the required down payment is 15% of the house value. What is Paul’s monthly mortgage payment (rounded to the nearest dollar)?
Diego is getting a mortgage for $320,000 at a rate of 4.5% for 30 years. What is his monthly payment to cover the mortgage?
Jessica purchases a house for $323,000 and takes a mortgage for the full amount. Her mortgage charges 6.75% per year and interest is compounded monthly. She will repay the loan over 25 years with equal monthly payments. a) What is her monthly payment amount? b) How much of the 8th payment would be applied toward interest? c) How much would be the payoff amount if the mortgage is to be paid at the end of year 2 (i.e., before the 24th payment is made)?
Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for $589,000 at an annual interest rate of 3%. What do the monthly payments need to be to amortize this loan?

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Andy takes out a 15-year mortgage of 125000 dollars to purchase a home. If the interest rate is 6.9 percent convertible monthly, how much is his monthly payment? Answer = dollars.