Using this table as needed, calculate the required information for the mortgage.Amount InterestFinancedRate$88,5008.00%Need Help? Read ItSubmit AnswerTermof Loan(years)30Numberof $1,000sFinanced88.5TableFactor(in $)7.34MonthlyPayment(in $)XLATotalInterest(in $)X

Monthly payment refers to an amount that is being paid at every period for the repayment of loan…

Using this table as needed, calculate the required information for the mortgage. Term of Loan (years) Number of $1,000s Financed Amount Interest Financed Rate $88,500 8.00% Need Help? Read It 30 88.5 Table Factor (in $) 7.34 $[ Monthly Payment (in $) x $1 Total Interest (in $) X

Using this table as needed, calculate the required information for the mortgage. Term of Loan (years) Number of $1,000s Financed Amount Interest Financed Rate $88,500 8.00% Need Help? Read It 30 88.5 Table Factor (in $) 7.34 $[ Monthly Payment (in $) x $1 Total Interest (in $) X

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

See similar textbooks

Related questions

Q: If a business unit generated $3,600,000 in BEFORE TAX PROFIT and had invested capital of $18,000,000…

A: An indicator of the financial success of ongoing initiatives, Economic Value Added (EVA), also…

Q: Mitch and Bill are both age 75. When Mitch was 25 years old, he began depositing $1200 per year into…

A: The bank generally provides compounded interest on the deposits in the saving account. The…

Q: Exercise 26-9 (Static) Payback period; net present value; unequal cash flows LO P1, P3 Gonzalez…

A: Capital budgeting refers to the process of evaluating and selecting long-term investment projects or…

Q: X Ltd. has 10 lakhs equity shares outstanding at the beginning of the accounting year 2016. The…

A: Given: Equity shares = 10,00,000 Industry P/E ratio = 8.35 Earnings per share = 20 P/E ratio of the…

Q: why the increases in bond price are larger than the decreases in terms of dollars for the same…

A: Bond valuation is a method to value bond with its future coupon payments and maturity value being…

Q: Problem 11-1 Stock Market History (L01) Use the data in the tables below to answer the following…

A: Businesses examine possible significant projects or expenditures using the capital budgeting…

Q: Calculate the value of a bond that matures in 10 years and has a $1,000 par value. The annual coupon…

A: time = t = 10 Years Face value = fv = $1000 Coupon rate = 9% Yield to Maturity = r = 15%

Q: An investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. The…

A: whenever market interest rates increases,bond prices decreases Fixed coupon bonds will have coupon…

Q: Amir has obtained a $250,000 mortgage. The mortgage is amortized over 25 years and the term of the…

A: Mortgage refers to the long-term loan that is taken by the individual to purchase residential…

Q: Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property…

A: Capital budgeting involves the evaluation of various options available for Investments or projects.…

Q: Seatwork Suppose you invest Php 100,000 today to: ● ● After a year, ● Buy 40 PLDT stocks at Php…

A: Return on investment includes the dividend received during the holding period , interest received on…

Q: ing investing in a project that will cost $160,700 and have no salvage value at the end o s…

A: Annuity is a series of equal payment at equal interval for a specified period. Present value of…

Q: You just received an insurance settlement offer related to an accident you had three years ago. The…

A: To calculate which is the best option the present value of each option has to be considered. Option…

Q: Using a compound interest calculator, it you would deposit $100 each month into a savings account…

A: Compounding is technique by which present cash flow is converted into equivalent future amount at a…

Q: An investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. The…

A: A bond is a fixed income instrument that pays certain percentage of coupon interest on face value of…

Q: Arrange the following items in proper balance sheet presentation: (Amounts to be deducted should be…

A: Balance sheet: Balance sheet is used to represent the financial position of the company at a…

Q: 16. What is the total variance of the following portfolio including 2 assets invested in the ratio…

A: Formula to be used: Portfolio variance=(WA2 x σ2A)+(WB2 x σ2B)+ (2 x WA x σA x WB x σB x r) Data…

Q: Problem 11-1 Stock Market History (LO1) Use the data in the tables below to answer the following…

A: A treasury bill is a kind of debt security issued by the government and private companies for…

Q: Compute the total and annual return on the following investment. Two years after paying $3600 for…

A: Shares are a type of financial instrument or a financial asset. Investment can shares can give…

Q: A stock increased in value 400% over the past 4 years. This was an increase of $1,200. What was the…

A: Data given: Increase in value over the past 4 years=400% Increase amount=$1200 Required: a) Value…

Q: Crane Corp had sales of $322,000 in 2017. If management expects its sales to be $476,450 in 3 years,…

A: Interest rate or growth rate can be calculated by dividing the some investment between two time…

Q: Theresa and Raul purchased a house for $200,000. They made a down payment of 15% of the purchase…

A: Here, Particulars Values Purchase price $ 2,00,000.00 Down payment percentage 15.00% Down…

Q: An analyst has gathered the following information about ABC Inc. and DEF Inc. The respective credit…

A: Credit spread is the difference in the market rates of two bonds with same maturity but different…

Q: Use graphical approximation techniques or an equation solver to approximate the desired interest…

A: The annual nominal rate refers to the stated or nominal interest rate charged or earned on a…

Q: Problem 3-32 Working Capital (LO1) The table below contains data on Fincorp Incorporated. The…

A: Net working capital (NWC) refers to the difference between a company's current assets and its…

Q: How much would you pay today for the right to receive $80 at the end of 10 years if you can earn 15…

A: Present value refers to the current value of an asset that will be present at some future date. It…

Q: At age 22, someone sets up an IRA (individual retirement account) with an APR of 6%. At the end…

A: Annuity refers to the payment series where a set amount is paid periodically in exchange for a lump…

Q: Shutterpics reported net income of $453 million in 2021 (tax rate 25%). The Company's capital…

A: Earning per share is a kind of ratio that is used to determine the company's profitability.…

Q: copy..Alyeska Services Company, a division of a major oil company, provides various services to the…

A: Turnover = Sales/Average operating assets

Q: Elise just sold stock and realized a 8.4 percent return for a 3-month holding period. What was her…

A: EAR is also known Effective Annual Rate. It is the effective rate of return which is earned by the…

Q: Bramble Corporation had net credit sales of $14100000 and cost of goods sold of $9370000 for the…

A: Here, Net Credit Sales is $14100000 Cost of Goods Sold is $9370000 Average Inventory is $1171250

Q: A Bank has the following balance sheet (in millions), with the risk weights in parentheses. In…

A: The assets on the balance sheet are assigned a weight on the basis associated with the asset. Like…

Q: Explain the importance of budgeting in financial management and discuss the key steps involved in…

A: Planning and Goal Setting: Budgeting allows organizations to set financial goals and objectives,…

Q: Finance what is cost of equity as an effective annual rate given that they pay semi annually,…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: What is the purpose of a budget in financial management?

A: Financial management refers to the process of planning, organizing, directing, and controlling the…

Q: You are evaluating an investment project costing $11,000 initially. The project will lose 5,000 in…

A: Particularly for investment projects with constrained financial resources or short time horizons,…

Q: Sunland Company is considering two different, mutually exclusive capital expenditure proposals.…

A: Annuity is a series of equal payments at equal interval for a specified period of time. With…

Q: BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it…

A: Net present value is computed as = Present value of cash inflows - Initial Investment Profitability…

Q: Equity is one of the key elements of partnering and it includes all the following except Select one:…

A: Equity is merely the worth of an investor's risk in a the organisation. The market value of the…

Q: CALCULATE THE FORWARD PER ANUM premium OR DISCOUNT. The pound sterling is quoted against the dollar…

A: Given: Spot rate = $1.8000 Forward rate = $1.78 Pound sterling is quoted against the dollar spot…

Q: Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 5.7% when the…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: A couple wishes to borrow money using the equity in their home for collateral. A loan company will…

A: Loan amount = 70% equity Value of house 12 years before= $76810 Down payment = 15% Number of years =…

Q: If money earns 8.10% compounded quarterly, what single payment in three years would be equivalent to…

A: More is the compounding of interest than more is the effective rate and interest and more is the…

Q: Masonry Ltd. The CEO has come to Jason with some questions about cash budgeting and whether the…

A: The concept of cash budget is associated with the cash management of inflow and out flow on an…

Q: b : Finance Pls answer very fast.I ll upvote CORRECT ANSWER . Thank You( Dnt use CHATGPT ) If a…

A: Companies a lot of money in the business and basic objective is to create value for shareholders and…

Q: A preferred stock pays a 3% dividend yield on a redemption value of $40, what is its value using a…

A: Dividend Yield = 3% Redemption value = $40 Cost of equity = 2.5%

Q: Suppose that a bank has agreed to the following terms of an interest rate swap: - The notional…

A: Bond-price valuation method: Finding a bond's fair market value is known as bond valuation. The…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Amount financed = $169,300 Interest rate = 7.25% Term of loan = 15 years

Q: MAX 1934 Ans: $1296 There were 30% more cars registered in October than in September. In November,…

A: Total number is the sum of the individual line item in a given period of time.

Q: This question relates to the SportHotel problem we covered in class (and is also in your textbook…

A: Information on Orginal problem: Cash inflows:If the franchise is awarded - $8mIf the franchise was…

Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

100%

Using this table as needed, calculate the required information for the mortgage.
Amount Interest
Financed
Rate
$88,500
8.00%
Need Help? Read It
Submit Answer
Term
of Loan
(years)
30
Number
of $1,000s
Financed
88.5
Table
Factor
(in $)
7.34
Monthly
Payment
(in $)
X
LA
Total
Interest
(in $)
X

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

Step 1: Introduction of monthly payment

VIEW

Step 2: calculation of the amount of monthly payment and interest

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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

Using this table as needed, calculate the required information for the mortgage. AmountFinanced InterestRate Termof Loan(years) Numberof $1,000sFinanced TableFactor(in $) MonthlyPayment(in $) TotalInterest(in $) $73,500 8.00% 30 $ $ $
Using this table as needed, calculate the required information for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) Numberof $1,000sFinanced TableFactor(in $) MonthlyPayment(in $) TotalInterest(in $) $168,300 7.25% 15 168.3 $ $ $
s one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) MonthlyPI AnnualPropertyTax AnnualInsurance MonthlyPITI $230,000 3.50% 25 $ $6,543 $2,186
Whatiseachofthefollowinginvestmentsworthtodayassuminganannualdiscountrateof 7%? c) A level pay mortgage on a small retail shop with a maturity of 5 years and quarterly payments of £55.
Make an amortization table to show the first two payments for the mortgage. Amount of mortgage Annual interest rate Years in mortgage Monthly payment $407,550 5.25% 35 $2122.29 Month Monthly payment Interest Principal End-of-month principal 1 $2122.29 $enter your response here $enter your response here $enter your response here 2 $2122.29 $enter your response here $enter your response here $enter your response here
Using this table as needed, calculate the required information for the mortgage. (Round dollars to the nearest cent.) (table is attached) Amount Financed = 163,300 Interest Rate = 7.25% Term of Loan (years) = 15 Table Factor (in $) = 9.13 Solve for the following: Number of $1,000s Financed Monthly Payment (in $) Total Interest (in $)
Jamison is looking at the historical prepayment for a passthrough security. He finds the following: mortgage balance in month 42 = $260,000,000 scheduled principal payment in month 42 = $1,000,000 prepayment in month 42 = $2,450,000 What is the SMM for month 42? How should Mr. Jamison interpret the SMM computed? What is the CPR for month 42?
Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest cent.) Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $180,000 $40,000 7.5 % 35
I need the excel function typed out? Example =RATE???? G. Find the interest rate (APR) on a 27-year mortgage with a initial loan amount of $358,000, if the monthly payment is $2229.45 Let's use references for input values; and be sure to annualize the rate! INPUTS: OUTPUT: Period 27 Rate is APR Payment 2229.45 Loan amount 358000
For the second mortgage application, calculate the percentage of appraised value and the potential credit (in $). AppraisedValue Lender'sPercentage Percentage ofAppraised Value (in $) Balance ofFirst Mortgage PotentialCredit (in $) $1,359,000 60% $ $514,190 $
Based on Exhibit 7-8, what would be the monthly mortgage payments for each of the following situations? (Round mortgage payment factors and final answers to 2 decimal places. Omit the "$" sign in your response.) a) A $123,000, 15-year loan at 6.0 percent APR compounded semi - annually b) A $165, 000, 25- year loan at 7.5 percent APR compounded semi- annually c) A $68, 000, 20-year loan at 7.5 percent APR compounded semi - annually.
Consider a 7.5%, $145,000, 25-year mortgage loan with 1/2% origination fee, 3/4 of a point, $550 mortgage insurance fee, $360 document prep fee, $395 appraisal fee, $663 title insurance fee, $125 credit report fee, $75 recording fee, and $500 to be placed in escrow. Calculate the reportable APR%