John just bought a house. He made a $20,000 down payment and financed the balance with a 22-year home mortgage loan with an interest rate of 6% compounded monthly. His monthly mortgage payment is $875. What was the selling price of the house? Round your answer to the nearest dollar.

John just bought a house. He made a $20,000 down payment and financed the balance with a 22-year home mortgage loan with an interest rate of 6% compounded monthly. His monthly mortgage payment is $875. What was the selling price of the house? Round your answer to the nearest dollar.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Related questions

Q: Mr. and Mrs. Murthy have a totally monthly gross income of $6000.00. They are interested in…

A: GDSR is a metric that measures housing costs as a proportion of the gross income of the borrower.

Q: Aaron is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside…

A: The is based on the calculation of mortgage loan and value of property as per eligibility of loan .…

Q: Jay puts $40,000 down on a house that cost $275,000, calculate the monthly mortgage payment on the…

A: formula for monthly payment: pmt = p×rm1-1+rm-m×n p = principal r = rate of interest m = frequency…

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of Monthly Payment:The monthly payment is $710.04.Excel Spreadsheet:

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of Amount of Money Paid to the Loan in 10 years:The amount of money paid to the loan in…

Q: Ken just bought a house. He made a $15,000down payment and financed the balance with a 20-year home…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Ken just bought a house. He made a $15,000 down payment and financed the balance with a 25-year…

A: Monthly Payment (A)=$953 Duration(n)=25*12=300 periods Rate of interest (i)=5.1%/12=0.00425

Q: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…

A: Computation as follows:

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of original loan paid off:The original loan paid off is $16,572.Excel Spreadsheet:

Q: new house for $ 120,000. He was able to make a down payment equal to 25% of the value of the house;…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Computation of the equity:Hence, the equity is $91,752.

Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: When a buyer buys goods from a seller and is not able to pay the entire amount at the time of…

Q: How much money was your existing mortgage loan for? suppose that 10 years ago you bought a home for…

A: Given information: Mortgage bought for $150,000 Down payment is 10% Interest rate is 9% Number of…

Q: Jim is buying a house for $220,000. His loan is a 15-year fixed-rate mortgage at 4%. Jim makes a 10%…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: The Caseys recently bought a new condo by taking out a $118,000 mortgage that charges 8.5%…

A: FV = Remaining Balance PV = Loan Amount = $118000 r = 8.25% / 12 = 0.0825/12 = 0.006875 n = 6 x 12 =…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Computation of total interest:Hence, the total interest that is paid so far is $1,980.06.

Q: Syvia bought a house for $300,000 with an installment loan for 30 years (360 monthly payments).…

A: Loan Amount(PV) is $300,000 Nominal interest rate is 4% Time Period is 30 years or 360 months To…

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: ken just bought a house. He made a $20,000 down payment and financed the balance with a 25 year home…

A: Purchase price = Down Payment + Present Value of Mortgage Payment

Q: Ken just bought a house. He made a $20,000 down payment and financed the balance with a 25 year…

A: Selling price of any financial asset or property refers to the net amount at which the property or…

Q: Zaim bought a low-cost terrace house for RM35,000. He paid a 10% down payment and the balance was…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: he Nicols are buying a house selling for $435,000. They pay a down payment of $35,000 from the…

A: Data given: Cost of house = $435,000 Down payment= $35,000 Required: Amount of the mortgage= ?

Q: Suppose that 10 years ago you bought a home for $160,000, paying 10% as a down payment, and…

A: A mortgage is a loan on a property where the collateral to the loan is the property itself.

Q: Donald and Alex have a combined gross monthly income of $5500. They want to buy a house in a…

A: Maximum monthly mortgage payment refers to the amount that an individual has after considering all…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of Amount Saved each month due to lower Monthly Payment:The amount saved each month due…

Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: The computation of down payment as follows: Hence, the down payment is $15,000.

Q: A man buys a house for a $245,000. He pays $70,000 down and takes out a mortgage at 5.1% for 25…

A: Given: The cost of house = $245,000 Down payment on house = $70,000 Mortgage rate = 5.1% Time period…

Q: Hong is going to invest to help with a down payment on a home. How much would he have to invest to…

A: The amount required to invest today can be calculated as present value of future amount

Q: Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down…

A: Given:

Q: Lucky Louie wants to buy a car that costs $26,750. The interest rate on his loan is 5.33 percent…

A: Car cost = 26750 Interest on loan = 5.33% Years = 7 Compounded = Monthly PMT find out using Excel:…

Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: nt a.)If his new home costs $136,000, what is his down payment? b.)How much is he going to borrow…

A: PMT function computes installment amount for given interest rate (RATE), no. of installments (NPER)…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of Total Interest to be paid:The total interest to be paid is $239,482.71.Excel…

Q: Marry are buying her first house for $220,000, and are paying $30,000 as a down payment. You have…

A: Please refer to the image below.

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of Interest Paid over the New Loan:The interest paid over the new loan is…

Q: Bill took out a 6 year loan to buy a car. If the loan carried an annual interest rate of 6.5% and he…

A: The amount of interest paid is calculated as difference of total payments less present value of…

Q: The Cooks bought a $233,000 house. They made a down payment of $48,000 and took eut a mortgage for…

A: Given:

Q: Ben buys a house. He obtains a $220,000, 30-year mortgage at 5%. Annual property taxes $1,800,…

A: Calculate the monthly instalments as follows:

Q: Suppose you buy a home and finance $255,000 at $2,223.17 per month for 30 years. What is the amount…

A: Given: Finance amount = $255,000 Payment per month = $2,223.17 Years = 30

Q: Bill and Susan bought a home for $190,000 and made a 20% down payment. They got a fixed rate…

A: Computation:

Q: Suzanne borrowed a certain amount of money at an annual simple interest rate of 3.4%. If she…

A: The interest amount can be calculated with the help of simple interest function

Q: Mark and Natalie want to buy a house selling for $120,000. They will put $20,000 down as a down…

A: Part (a): Calculation of monthly payment: Answer: Monthly payment is $561.53

Q: Jeff purchased a house costing $200,000. He put 20% down and borrowed the balance negotiating a…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: The Colemans bought a s234,000 house. They made a down payment of $41,000 and took out a mortgage…

A: Mortgage: A mortgage could be a contract between you and a lender that gives the lender the proper…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Calculation of the selling price of the house is as follow:

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Ken just bought a house. He made a $15,000down payment and financed the balance with a 20-year home mortgage loan with an annual interest rate of 4.8%. compounded monthly. His monthly mortgage payment is $971. What was the selling price of the house?
ken just bought a house. He made a $20,000 down payment and financed the balance with a 25 year home mortgage loan, with an annual interest rate of 5.4% compounded monthly. His monthly mortgage payment is $867. What was the selling price of the home?
Ken just bought a house. He made a $20,000 down payment and financed the balance with a 25 year homew mortgage loan, with an annual interest rate of 5.4% compounded montrhly. His monthly mortgage payment is $867. What was the selling price of the home?
Waleed just purchased a new house for $ 120,000. He was able to make a down payment equal to 25% of the value of the house; the balance was mortgaged. The rate by the bank is 10% compounded annually. The mortgage has a 20 year amortization period (this means that payments are calculated assuming it will take 20 years to pay off the loan). What will be the size of the annual payments?
Carlos purchased a house for $230,000; he paid $11500 as a down payment and financed the balance amount at 3.9% compounded monthly for 25 years. the monthly payment is 1141.293. a) What was the amount of interest charged for the entire loan? b) If Carlos pays an additional $100 per month, how many periods will it take to pay off the load? c) If Carlos pays an additional $100 per month, how much interest will be saved?
A couple purchased their home for $280,000. They signed a 30 year mortgage at 5.28% interest compounded monthly. What is the monthly payment and the total amount of interest paid on this loan? If the couple puts 20% down towards the purchase of the house listed above, what is the new monthly payment and the total amount of interest paid on this new loan? How much money is saved per month and how much interest is saved?
You borrowed $300,000 to build a home by taking out a 30 year loan that has an interest rate of 12%. What will your annual payments be? PLEASE BREAK DOWN
A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down andsigning a 30-year mortgage at 12% compounded monthly on the unpaid balance. The net market value of thehome is now $2,500,000, and the couple wishes to sell the house.(a) How much was the monthly loan payment?
Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a 30 year loan at 3.85% interest for the balance.a) How much is the loan amount going to be?b) What will the monthly payment be for Manuel and Aponi?c) How much of the first payment is interest?d) What is the total of the payments?e) How much interest was paid?
You purchase a home for $400,000 and make a down payment of $125,000. The balance is borrowed and financed as follows: 4 year mortgage, 5% interest, paid as an ordinary annuity. How much total interest is paid on the loan?
Kevin bought a washer and dryer for $1050 but only had a down payment of $150.00. He financed the rest using add-on interest of 9.8% and will pay it off in 18 months. Submit your answer in the form $250.00 (use the dollar sign and round to the nearest cent). How much interest will he pay on the dishwasher after the 18 months?Blank 1 After factoring in the interest, how much will he pay for the dishwasher in total?Blank 2 What would the monthly payment be?Blank 3
Twelve years ago you financed your $93,000 house with monthly payments on a twenty-yearmortgage loan with interest charged at 6.25% compounded monthly. Your realtor says the currentnet market value of the home is $102,000. What is your equity in the house?