Question

In: Finance

A couple has decided to purchase a $200000 house using a down payment of $15000. They...

A couple has decided to purchase a $200000 house using a down payment of $15000. They can amortize the balanxe at 10% over 25 years.

What is their monthly payment?

What is the total interest paid?

What is the equity after 5 years?

What is the equity after 20 years?

Solutions

Expert Solution


Related Solutions

A couple has decided to purchase a $240000 house using a down payment of $30000. They...
A couple has decided to purchase a $240000 house using a down payment of $30000. They can amortize the balance at 10% over 20 years. a) What is their monthly payment? Answer = $ b) What is the total interest paid? Answer = $ c) How much of their first payment went toward paying interest? Answer = $ d) How much of their first payment went toward paying the balance of the loan. Answer = $
A couple has decided to purchase a $150000 house using a down payment of $12000. They...
A couple has decided to purchase a $150000 house using a down payment of $12000. They can amortize the balance at 9% over 25 years. a) What is their monthly payment? Answer = $   b) What is the total interest paid? Answer = $   c) What is the equity after 5 years? Answer = $   d) What is the equity after 20 years? Answer = $
A couple has decided to purchase a $370000 house using a down payment of $21000. They...
A couple has decided to purchase a $370000 house using a down payment of $21000. They can amortize the balance at 12% over 30 years. a) What is their monthly payment? Answer = $ b) What is the total interest paid? Answer = $ c) How much of their first payment went toward paying interest? Answer = $ d) How much of their first payment went toward paying the balance of the loan. Answer = $
A couple has decided to purchase a $150000 house using a down payment of $17000. They can amortize the balance at 11% over 30 years.
A couple has decided to purchase a $150000 house using a down payment of $17000. They can amortize the balance at 11% over 30 years.a) What is their monthly payment?Answer = $  1265.78b) What is the total interest paid?Answer = $  322680.8c) What is the equity after 5 years?Answer = $  d) What is the equity after 25 years?Answer = $ Equity is assets minus liability. So you want to find the present value of the loan after 5 years and 25 years,...
In order to accumulate enough money for a down payment on a house, a couple deposits...
In order to accumulate enough money for a down payment on a house, a couple deposits $472 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 3 years? Round to the nearest dollar
You own a house that cost $200000 to build. You buy a $15000 insurance policy to...
You own a house that cost $200000 to build. You buy a $15000 insurance policy to compensate you for damage to the house. The deductible $25000.(If your house suffers $4000 damage from a storm, you pay for all repairs yourself. If the house suffers $45000, in damage, you pay$25000 and the insurance company pays the remaining $20000.) Graph the positions of the unhedged home, the home insurance and the hedged home position on the profit and loss diagram. In the...
In order to accumulate enough money for a down payment on a house,a couple deposits $437per...
In order to accumulate enough money for a down payment on a house,a couple deposits $437per month into an account paying 6% compounded monthly. If payments are made at the end of each period,how much money will be in the account in 6 years?
In order to accumulate enough money for a down payment on a house,a couple deposits $718per...
In order to accumulate enough money for a down payment on a house,a couple deposits $718per month into an account paying 6%compounded monthly. If payments are made at the end of each period,how much money will be in the account in 4years?(Round o the nearest dollar.)
A young professional couple buy a house for $600,000. They make a down payment of $60,000...
A young professional couple buy a house for $600,000. They make a down payment of $60,000 and agree to amortise the rest of the debt with quarterly payments made at the end of each quarter over the next 20 years. The interest on the debt is 12% per annum compounded quarterly. 5(a). (i) What type of annuity is this? (ii) How many payments are made in total? (iii) What is the interest rate per period? (iv) Write down an explicit...
Fifteen years ago a couple purchased a house for $230,000.00 by paying a 20% down payment...
Fifteen years ago a couple purchased a house for $230,000.00 by paying a 20% down payment and financing the remaining balance with a 30-year mortgage at 4.7% compounded monthly. (a) Find the monthly payment for this loan. (b) Find the balance of the loan after 16 years and after 17 years? (c) Find the total amount of interest paid by the couple during the 17th year.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT