John takes out a 50 000 mortgage on a home at 12 % % convertible semiannually. He pays off the mortgage with monthly payments for 20 years, the first one due one month after the mortgage is taken out. Immediately after his 60th payment, John renegotiates the loan. He agrees to repay the remainder of the mortgage by making immediate cash payments of 10 000 and repaying the balance by means of monthly payments for ten years at 11% convertible semiannually. Find the amount of his new payment.

John takes out a 50 000 mortgage on a home at 12 % % convertible semiannually. He pays off the mortgage with monthly payments for 20 years, the first one due one month after the mortgage is taken out. Immediately after his 60th payment, John renegotiates the loan. He agrees to repay the remainder of the mortgage by making immediate cash payments of 10 000 and repaying the balance by means of monthly payments for ten years at 11% convertible semiannually. Find the amount of his new payment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Complete solution needed Eleanor makes year-end deposits of P5000 the first year, P5500 the second year, P6050 the third year, and so on, increasing the next year's deposit by 10% of the deposit in the preceding year until the end of the tenth year. Ronald deposits Php9,100 during the first year, Php 8,600 in the second year, and amounts decreasing by Php 500 every year. If interest on both funds is 12% compounded annually, who will be able to save more at the end of the 10 years? Draw the cash flow diagram for both situations.
A father is saving money 5 years before his son will be going to college. Upon opening he deposited 7,000Pesos to an account that has 4% interest compounded annually. After a year he deposited 11,000Pesos, then on the second and third year he puts 13,000Pesos and 4,000Pesos respectively. If after 5 years they withdrew the account how much would they receive? * 40,335 Pesos 34,333 Pesos 30,333 Pesos 45,345 Pesos
Aaron invest P5,000 at the end of each year in an accountwhich given a nominal annual interest of 7.5%, compoundedcontinuously. Determine the total worth of this investment atthe end of 15 years.
A man borrowed an amount of P684.255 to bank that offers an interest rate of 8.816% compounded continuously and has a maturity date of 9 years. He plans to pay the loan at an amount of P51.875 at the end of 3 years, and P41,630 at the end of 6 years. Effect interest rate,%? Future worth of the principal amount after 9 years? How much must he pay at the end of 9 years?
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 5.5% per year compounded semiannually, what will be your minimum selling price for the bond?
Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P700,000.00 in 35 equal monthly payments, with the first installment to be made a month from today, plus a payment of P30,000.00 two months from today. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro’s Monthly Payment ?
Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P700,000.00 in 35 equal monthly payments, with the first installment to be made one month from today, plus one final payment of P30,000.00 at the end of 36 months from date of agreement. If the interest rate applicable is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro’s Monthly Payment
Today, a corporation sold a new car to Anne. Anne offered to pay the the company the remaining balance of P700,000 in 35 equal monthly payments, the first of which would be made one month from today. In addition, the former suggested making a final payment of P30,000.00 36 months from the date of the agreement. What is the amount of Pedro's monthly payment if the interest rate in effect is 12% compounded monthly and assuming that payments would be made on time?
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. Solve, a. Determine the accumulated savings in this account at the end of 30 years. In Part (a), suppose that an annuity will be with drawn from savings that have been accumulated at the EOY 30. The annuity will extend from the EOY 31 to the EOY 40. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change?
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,600 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 23 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 23. The annuity will extend from the EOY 24 to the EOY 33. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? The accumulated savings amount at the end of 23 years will be $
Addy plans to deposit her annual bonus into a savings account that pays 4% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2500 a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years C) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8 but also plans to skip the deposits at the end of vears 3 and 6?
How much should I expect a lump sum from a deal at the end of 3 years if I start investing today at amount of 8,152 every 3 months with a ROR of 0.13 compounded quarterly?