Question

In: Finance

Sarah has a mortgage on her house with a balance of $150,000 andthe APR on...

Sarah has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is currently paying $1,500 a month on the loan, at this rate how many years will it take to repay the loan?

Expert Solution

Mortgage balance today is $150,000 assuming it as current loan amount for calculation purposes.

Monthly Payment = $1500

Calculating the No of years it would take to pay off the mortgage:-

Where, P = Loan amount = $150,000

r = Periodic Interest rate = 6%/12 = 0.5%

n= no of periods or months

Taking Log on both sides,

n*Log(1.005) = Log(2)

Solving log with financial calculator,

n*0.00216606 = 0.301030

n = 138.98

No of months = 138.98

No of years = 11.58 years

So, the no of years will it take to repay the loan is 11.58 years

jeff jeffy answered 2 years ago

Lloyd Inc. has sales of $150,000, a net income of $13,500, andthe following balance sheet:...

Lloyd Inc. has sales of $150,000, a net income of $13,500, and the following balance sheet: Cash $36,660 Accounts payable $34,320 Receivables 75,270 Notes payable to bank 16,380 Inventories 218,400 Total current liabilities $50,700 Total current assets $330,330 Long-term debt 50,700 Net fixed assets 59,670 Common equity 288,600 Total assets $390,000 Total liabilities and equity $390,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry...

Sarah secured a bank loan of $155,000 for the purchase of a house. The mortgage is...

Sarah secured a bank loan of $155,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 5 years. How much will Sarah still owe on her house? (Round your answer to the nearest cent.)

Sarah secured a bank loan of $185,000 for the purchase of a house. The mortgage is...

Sarah secured a bank loan of $185,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.) $____

Your friend has just purchased a house and has incurred a $150,000, 4.5% mortgage payable at...

Your friend has just purchased a house and has incurred a $150,000, 4.5% mortgage payable at $760.03 per month. After making the first monthly payment, he receives a statement from the bank indicating only $197.53 had been applied to reducing the principal amount of the loan. Your friend then calculates that at the rate of $197.53 per month, it will take 63 years to pay off the $150,000 mortgage. Discuss and explain whether your friend’s analysis is correct or not....

John and Peggy recently bought a house. They financed the house with a $150,000, 30-year mortgage...

John and Peggy recently bought a house. They financed the house with a $150,000, 30-year mortgage with a nominal interest rate of 6.68%. Mortgage payments are made at the end of each month. What total dollar amount of their mortgage payments during the first 4 years will go towards repayment of principal?

1. Your friend has just purchased a house and has incurred a $150,000, 4.5% mortgage payable...

1. Your friend has just purchased a house and has incurred a $150,000, 4.5% mortgage payable at $760.03 per month. After making the first monthly payment, he receives a statement from the bank indicating only $197.53 had been applied to reducing the principal amount of the loan. Your friend then calculates that at the rate of $197.53 per month, it will take 63 years to pay off the $150,000 mortgage. Discuss and explain whether your friend’s analysis is correct or...

A $150,000 mortgage at an APR of 5.5% amortized over 25 years can be paid off...

A $150,000 mortgage at an APR of 5.5% amortized over 25 years can be paid off by making monthly payments of $915.59. If instead you make payments of $457.80 every 2 weeks, how much sooner would you be able to repay your mortgage?

You bought a house for $150,000 and put down 10% and got a mortgage at an...

You bought a house for $150,000 and put down 10% and got a mortgage at an interest rate of 4.35 % per year. You would pay it back by paying an equal amount at the end of each month for 15 years? (Show all work) How much is your loan amount? How much is your monthly loan payment? How much is your loan balance after 2 years? How much is your total interest payment by the end of year 3?

Naomi has a 15 year mortgage on her house. Her monthly principal and interest payment is...

Naomi has a 15 year mortgage on her house. Her monthly principal and interest payment is $1,373. Her annual insurance is $1,388 and her annual property taxes are $1,996. Find her adjusted monthly payment of principal, interest, taxes, and insurance (PITI). Please show step by step. Thank you

Sarah leaves her house and walks 11 miles to the west and then 6 miles at...

Sarah leaves her house and walks 11 miles to the west and then 6 miles at an angle 30 degrees west of north. How far and in what direction does Sarah need to walk to get home? A picture and detailed show of work would be appreciated!