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In: Finance
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?
Solutions
Expert Solution
After 10 year or 120 months, Sarah will owe:- 71,100.12
jeff jeffy answered 4 months agoRelated Solutions
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.)
$____
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 $175,000 for the purchase of a house. The mortgage is...
Sarah secured a bank loan of $175,000 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.)
$
Sarah secured a bank loan of $165,000 for the purchase of a house. The mortgage is...
Sarah secured a bank loan of $165,000 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.)
$
The Flemings secured a bank loan of $240,000 to help finance thepurchase of a house....
The Flemings secured a bank loan of $240,000 to help finance the
purchase of a house. The bank charges interest at a rate of 4%/year
on the unpaid balance, and interest computations are made at the
end of each month. The Flemings have agreed to repay the loan in
equal monthly installments over 25 years. What should be the size
of each repayment if the loan is to be amortized at the end of the
term? (Round your answer to...
To purchase a house, Becky obtains a mortgage loan from Countywide Bank. The lender should record...
To purchase a house, Becky obtains a mortgage loan from
Countywide Bank. The lender should record the mortgage
to
a. be officially on record as holding an interest in the
property.
b. secure itself in the position of an unsecured creditor.
c. preserve a copy of the loan in a separate location.
d. obtain reimbursement for a portion of the loan if the debtor
defaults.
Suppose you need a 5-year mortgage loan to purchase a house that worth $450,000. The bank...
Suppose you need a 5-year mortgage loan to purchase a house that
worth $450,000. The bank offers two interest rate options for you
to choose:
(i). Fixed rate at 3.5%. Interest rate will remain fixed for
that loan's entire term, no matter how the market interest rate
changes.
(ii). Variable rate which varies with market interest rate and
is typical 1.5% above the market interest rate.
Which one would you choose? Briefly explain
why.
You purchase a cottage for $185,000. You obtain a 25-year, fixed rate mortgage loan at 12.5%...
You purchase a cottage for $185,000. You obtain a 25-year, fixed
rate mortgage loan at 12.5% after paying a down payment of 25%. Of
the second month's mortgage payment, how much is applied to the
principal ? (Round your answers to the nearest cent.)
Five years ago, Diane secured a bank loan of $390,000 to help finance the purchase of...
Five years ago, Diane secured a bank loan of $390,000 to help
finance the purchase of a loft in the San Francisco Bay area. The
term of the mortgage was 30 years, and the interest rate was
8%/year compounded monthly on the unpaid balance. Because the
interest rate for a conventional 30-year home mortgage has now
dropped to 6.5%/year compounded monthly, Diane is thinking of
refinancing her property. (Round your answers to the nearest
cent.)
(a) What is Diane's current...
Five years ago, Marcus bought a house. He secured a mortgage from his bank for $1,720,000....
Five years ago, Marcus bought a house. He secured a mortgage
from his bank for $1,720,000. The mortgage had monthly payments for
20 years with an interest rate of 6.0% compounded monthly. However,
after five years, it is time to renegotiate the mortgage. Interest
rates have fallen to 4.5% compounded monthly, and Marcus still
intends to make monthly payments and to pay back the debt over the
remaining 15 years.
a) How much were Marcus' initial monthly payments?
b) What...
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