Olivia plans to secure a 5-year balloon mortgage of $220,000 toward the purchase of a condominium. Her monthly paymentfor the 5 years is calculated on the basis of a 30-year conventional mortgage at the rate of 4%/year compounded monthly.At the end of the 5 years, Olivia is required to pay the balance owed (the "balloon" payment). What will be her monthlypayment for the first 5 years, and what will be her balloon payment? (Round your answers to the nearest cent.)monthly paymentballoon payment$$

The objective of this question is to calculate Olivia's monthly mortgage payment for the first 5…

Answered: Olivia plans to secure a 5-year balloon…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Olivia plans to secure a 5-year balloon mortgage of $270,000 toward the purchase of a condominium. Her monthly payment for the 5 years is calculated on the basis of a 30-year conventional mortgage at the rate of 4%/year compounded monthly. At the end of the 5 years, Olivia is required to pay the balance owed (the "balloon" payment). What will be her monthly payment for the first 5 years, and what will be her balloon payment? (Round your answers to the nearest cent.) monthly payment $ balloon payment $
Olivia plans to secure a 5-year balloon mortgage of $240,000 toward the purchase of a condominium. Her monthly payment for the 5 years is calculated on the basis of a 30-year conventional mortgage at the rate of 5%/year compounded monthly. At the end of the 5 years, Olivia is required to pay the balance owed (the "balloon" payment). What will be her monthly payment for the first 5 years, and what will be her balloon payment? (Round your answers to the nearest cent.)
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)?
Seema takes out a 4 year mortgage for $1,125,000 at an interest rate of i(12) = 2.625%. The amortization period is 20 years and she will make monthly payments. What is the outstanding balance at the end of 2 years?
To buy a house, John takes out a fixed-rate amortizing mortgage of $270,000 for 20 years, with an annual percentage rate (APR) of 9%, compounded monthly. What will be John's required monthly payment? (Each payment includes principal and interest.) Round your answer to the nearest cent.
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)?
Sarah is planning to purchase a new house. To purchase the house, she will need to borrow $550,000 from the bank. The loan term is 30 years and the terms of the contract require monthly end of period payments (including interest and principle). The current interest rate offered by her bank is 3.5% per annum for a variable rate mortgage loan. If Sarah borrows the money from her bank and the interest rate decreases by 0.5% three years after the mortgage started, what would the new monthly repayment be?
) Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making monthly payments over 20 years. The interest on the loan will be 7.9% compounded semiannually. What is the size of the monthly payments? ____________ What is the outstanding balance after two years (i.e. 24 months)? __________ If Andrea chooses to pay $800 per month to pay off the $90,000 mortgage, how many payments are needed to pay off the debt? ___________ What is the size of the final payment? ____________
Sarah secured a bank loan of $200,000 for the purpose of purchasing a home. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3% per year compounded monthly on the unpaid balance. When Sarah sells her house in 5 years, how much will be left on her loan?
Soledad decides to have P2,100 at the end of each quarter, which is the amount paid into her retirement plan by the company where she works. If she chooses an investment fund that guarantees 7% per year compounded quarterly, how much will she have in 12 years? A P50,000 loan is payable in 3 years. To repay the loan, the debtor must pay an amount every months with an interest rate of 6% compounded semi-annually. How much should he pay every 6months? Gina has decided to make quarterly payments of P8,200 at the end of each quarter for 10 years into an investment that he thinks will yield 10% compounded quarterly, what lump sum deposited today that will result to the same future value?
kaye's housing loan worth 810,000 for 5 years was approved by the bank with an interest rate of 8% per annum. How much will be her monthly amortization?

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