Question
In: Finance
You need a 22-year, fixed rate mortgage to buy a new home for $290,000. Your mortgage...
You need a 22-year, fixed rate mortgage to buy a new home for $290,000. Your mortgage bank will lend you the money at an annual interest rate of 6.5% APR and annual compounding. What is your annual payment?
Solutions
Expert Solution
Present value = Annuity * [1 - 1 / (1 + rate)^time] / rate
290,000 = Annuity * [1 - 1 / (1 + 0.065)^22] / 0.065
290,000 = Annuity * [1 - 0.25021] / 0.065
290,000 = Annuity * 11.5352
Annuity = $25,140.45
Annual payment will be $25,140.45
jeff jeffy answered 2 years agoRelated Solutions
You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for
$290,000. Your mortgage bank will lend you the money at a 5.85% APR
(semi-annual) for this 360-month loan. However, you can afford
monthly payments of only $1,300, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment. How large will this balloon payment have to
be for you to keep your monthly payments at...
You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for
$290,000. Your mortgage bank will lend you the money at a 5.85% APR
(semi-annual) for this 360-month loan. However, you can afford
monthly payments of only $1,300, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment. How large will this balloon payment have to
be for you to keep your monthly payments at...
You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for
$290,000. Your mortgage bank will lend you the money at a 5.85% APR
(semi-annual) for this 360-month loan. However, you can afford
monthly payments of only $1,300, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Can someone please explain how to solve this without using
excel. Confused with the semi-annual part. Thanks!
8. You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage...
8. You need a 25-year, fixed-rate
mortgage to buy a new home for $240,000. Your mortgage bank will
lend you the money at a 7.5 percent APR for this 300-month loan,
with interest compounded monthly. However, you can only afford
monthly payments of $850, so you offer to pay off any remaining
loan balance at the end of the loan in the form of a single balloon
payment. What will be the amount of the balloon payment if you are...
You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new
home for $240,000. Your mortgage bank will lend you the money at an
APR of 3.25 percent for this 360-month loan. However, you can
afford monthly payments of only $975, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment. How large will this balloon payment have to
be for you to keep your monthly payments...
1. You need a 20-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage...
1. You need a 20-year,
fixed-rate mortgage to buy a new home for $200,000. Your mortgage
bank will lend you the money at a 7 percent APR for this 240-month
loan. However, you can afford monthly payments of only $800, so you
offer to pay off any remaining loan balance at the end of the loan
in the form of a single balloon payment.
Required:
How large will this
balloon payment have to be for you to keep your monthly...
You need a 25-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank...
You need a 25-year, fixed-rate mortgage to buy a new home for
$210,000. Your mortgage bank will lend you the money at a 7.6
percent APR for this 300-month loan. However, you can afford
monthly payments of only $850, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
How large will this balloon payment have to be for you to keep
your monthly payments at...
You need a 20-year, fixed-rate mortgage to buy a new home for $220,000. Your mortgage bank...
You need a 20-year, fixed-rate mortgage to buy a new home for
$220,000. Your mortgage bank will lend you the money at a 7 percent
APR for this 240-month loan. However, you can afford monthly
payments of only $950, so you offer to pay off any remaining loan
balance at the end of the loan in the form of a single balloon
payment. Required: How large will this balloon payment have to be
for you to keep your monthly payments...
You need a 30-year, fixed-rate mortgage to buy a new home for$500,000. You will pay...
You need a 30-year, fixed-rate mortgage to buy a new home for
$500,000. You will pay 20 percent down and borrow the rest at an
APR of 6 percent compounded monthly. However, you can only make
monthly payments of $1,800. The lender offers that you pay off the
remaining loan balance at the end of 30 years as a single balloon
payment. What will be the amount of the balloon payment if you are
to keep your monthly payments at...
You need a 27-year fixed rate loan to buy a new car for 22,000. Your bank...
You need a 27-year fixed rate loan to buy a new car for 22,000.
Your bank will lend you the money at an annual interest rate of
5.3% APR. What is your annual payment?
1. 1,550.51
2. 814.81
3. 1,472.47
4. 665.52
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Using the Stack class (it's on the class web page) construct a program that will evaluate...
- An old two-flat can be purchased for $200,000 cash. The two units can bring in a...
- Please code in C# - (C - Sharp) Assignment Description Write out a program that will...
- Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,500, paid biweekly,...
- Employees present a serious threat to the security of an organization. Give four reasons why employees...
- Do not neglect the old for the new. The existing business must not lose priority simply...
- (10 pts) Explain why modern computers consist of multiple abstract levels and describe the main functions...
ADVERTISEMENT