Use -to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $165,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 7.25% with closing costs of $2700 and 1 point. Mortgage B: 15-year fixed at 5.25% with closing costs of $2700 and 5 points. Choose the correct answer below, and fil in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) OA Mortgage A has a larger total cost than mortgage B by $ Mortgage B has a larger total cost than mortgage A by $

Use -to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $165,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 7.25% with closing costs of $2700 and 1 point. Mortgage B: 15-year fixed at 5.25% with closing costs of $2700 and 5 points. Choose the correct answer below, and fil in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) OA Mortgage A has a larger total cost than mortgage B by $ Mortgage B has a larger total cost than mortgage A by $

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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V4. A $200,000 30 year mortgage with a contract rate of 8.94%, $3000 closing costs (lawyer, appraisal, and transfer tax) and $1,000 in discount points (i.e mortgage setup fee). The monthly mortgage payment is determined to be $1600. what will be the effective borrowing rate if the borrower decides to pay off the loan at the end of year 8? Assume that the mortgage is based on monthly compounding.
A6) Finance Find the annual financing cost of a 45 day revolving credit agreement with a 0.5% commitment fee. Assume you borrow $278,558m at 5.62%. You can borrow up to $500,000.
31. Faith is taking out an $7,500, 1½-year loan with an APR of 8.75%. What isthe monthly payment for this loan?A. $441.17B. $485.14C. $519.34D. $446.12
What is the interest rate on a loan of $52,000 for 54 days that yields $780.00 interest? Group of answer choices 110% 0.3% 0.1%10%
Problem E: Effective cost of Short‐term Loan:ABC will be acquiring a P4,000,000 loan from XYZ Bank. 13. The detail are 6‐month term, 3% interest, P40,000 bank chargeand P50,000 compensating balance.Required:13. How much is the compound effective annual interest?
24. Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final answer to the nearest cent. Selling price Down payment amount mortgage rate years monthly payment first payment broken down into interest first payment broken down into principal balance at end of month $134,000 $5,000 7% 30 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651 3.36714 2.750 0.22917 9.54110 6.78622 5.42166 4.61311 4.08241 3.43728 2.875 0.23958 9.59848 6.84586 5.48361 4.67735 4.14892…
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh You are considering the following fixed interest rate mortgage loan alternatives: Alternative 1: $180,000 initial loan balance 4.00% annual nominal interest rate 30-year amortization schedule $859.35 monthly loan payment Alternative 2: $195,000 initial loan balance 4.25% annual nominal interest rate 30-year amortization schedule $959.28 What is incremental cost of borrowing the additional $15,000? 0.58% 4.25% 5.8% Correct! 7.01%?
M=(Lr[1+(r)/(12)]^((12t)))/(12[(1+(r)/(12))^(12t)-1]) Where: L = the loan amount in dollarsr = the annual interest rate expressed as decimalt = the number of years of the loanM = the monthly payment in dollars You are looking to buy a $415,000.00 home in Haverhill. If Bank ofAmerica will give them a 30-year mortgage at 3.25% annual interest rate forthe cost of the house after they receive a 20% down payment.A. Determine the loan amount? B. How much their monthly payment will be?C. At the end of the 30-years, how much total money will you have paid toBank of America for your home? In another word how much did the$415,000.00 house really cost the couple? D. How much interest will they have paid? Quantitative Reasoning ProjectE. How many of her monthly payment go toward the interest? F. What percent increase over the cost of the home does this interestrepresent? G. Redo and re-answer all questions, but this time for 15 years? Do analysis comparison between 30 and 15 years mortgage (at…
P.rah Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 93,000 $ 5,000 $ 88,000 5.5% 30 $ 5.68 $ 499.84 Assume the interest rate rises to 7%. What is the total cost of interest with the new interest rate? (Use Table 15.1). (Do not round intermediate calculations. Round your final answer to the nearest cent.) Total cost of interest $
Calculate the expected loss assuming that it is defaulted in month 60. In a mortgage loan with the following characteristics: PD = 6% Value of the loan: $1,000,000.00 MXN; monthly payment: $8,500.00 MXN; term: 20 years (240 months); LGD: 13%. Select one: a.-$3,822.00 MXN. b.-$8,500.00 MXN. c.-$3,833.00 MXN. d.-$7,800.00 MXN.
CNBC.com reported mortgage applications increased 9.9% due to a decrease in the rate on 30-year fixed rate mortgages to 4.03%. Dennis Natali wants to purchase a vacation home for $235,000 with 20% down. Calculate his monthly payment for a 20-year mortgage at 3.5%. Calculate total interest. (Use Table 15.1.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
18 .Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 90,000 $ 5,000 $ 85,000 5 1/2% 30 $ 5.67789 $ 482.62 What is the total cost of interest? Note: Do not round intermediate calculations. Round your answer to the nearest cent. Total cost of interest:???

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