interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan. Tara is considering different options for

interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan. Tara is considering different options for

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20 years at the interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan.

Tara is considering different options for this property investment. Tara may sell this house at the end of 3 years if the market price is attractive. If Tara sells the house 3 years later, how much will she have to fully repay the mortgage at that time? Show all work clearly.

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Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20 years at the interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan. Question. Tara is considering different options for this property investment. Tara may sell this house at the end of 3 years if the market price is attractive. If Tara sells the house 3 years later, how much will she have to fully repay the mortgage at that time? Show all work clearly
Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20 years at the interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan. If Tara makes a lump sum payment (in addition to the periodic regular repayment) of $200,000 one year after she purchased this house (assuming no penalty for early payment). Suppose that the interest rate remains the same one year later, and that she continues to repay her loan (interest and principal) periodically at the same annuity repayment amount calculated in part (a monthly loan amortization), how long will it take to fully repay the remaining balance? Show all work clearly. Briefly compare the your answer with the initial mortgage loan period in part (a monthly loan amortization).
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