What is the required annual mortgage constant for a 10 percent, 25-year loan, if payments are made annually?Ans. Using the mortgage constant computed in the previous problem, what is the annual payment for a $75,000 loan?Ans. If you owned a property that you expect will require a new $2,500 roof at the end of five years from today, how much would you set aside in equal installments from income each year to be assured of having the necessary capital? You can reinvest your capital at 10 percent annual interest.Ans. An individual wishing to save for the down payment on a home anticipates needing $12,000 in 36 months. If a 7 percent annual return can be earned, how much must be saved each month?Ans.

Kindly note that the first 2 questions cannot be solved as the information such as the loan amount…

Answered: If you owned a property that you expect…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 4FPE: Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five...

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What is the required annual mortgage constant for a 10 percent, 25-year loan, if payments are made annually?

Ans.

Using the mortgage constant computed in the previous problem, what is the annual payment for a $75,000 loan?

Ans.

If you owned a property that you expect will require a new $2,500 roof at the end of five years from today, how much would you set aside in equal installments from income each year to be assured of having the necessary capital? You can reinvest your capital at 10 percent annual interest.

Ans.

An individual wishing to save for the down payment on a home anticipates needing $12,000 in 36 months. If a 7 percent annual return can be earned, how much must be saved each month?

Ans.

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