1. Amortize a $125,000 (Sale Price) house with 20% down payment on a 15 year loan...

1. Amortize a $125,000 (Sale Price) house with 20% down payment on a 15 year loan at 3.0% annual interest rate
	(1) What is the monthly payment?
	(2) What month will the debt be less than $50,000? (Assume that you just took out the loan)
	(3) How much will you pay in interest over the life of the loan?

Expert Solution

a.

Loan Amount = 125,000(0.80) = $100,000

Calculating Monthly Payment,

Using TVM Calculation,

PMT = [PV = 100,000, FV = 0, N = 180, I = 0.03/12]

PMT = $690.58

b.

Calculating Time period,

Using TVM Calculation,

N = [Pv = 100,000, PMT = -690.58, FV = 50,000, I = 0.03/12]

N = 100

Time Period = 100 months

c.

Total Interest paid = 180(690.58) - 100,000

Total Interest Paid = $24,304.40

jeff jeffy answered 2 years ago

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage...

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage interest rate is 4.125%. How much is the monthly payment? How much will the borrower pay in total interest?

3. Amortize a $250,000 (Sale Price) house on a 30 year loan at 4.0% annual interest...

3. Amortize a $250,000 (Sale Price) house on a 30 year loan at 4.0% annual interest rate Amortize a $250,000 (Sale Price) house on a 15 year loan at 3.0% annual interest rate (7) What will be the total cost of the 30 year loan? (Total of all Interest & Principle ) (8) What will be the total cost of the 15 year loan? (Total of all Interest & Principle ) (9) At the end of 4 years, how much...

Loan 3: 15-year versus 30-year mortgage Amortize a mortgage for a $225,000 house with a 20%...

Loan 3: 15-year versus 30-year mortgage Amortize a mortgage for a $225,000 house with a 20% down payment for both a 15-year mortgage at 3.625% and a 30-year mortgage at 4.125%. 15-year mortgage monthly payment? What is the total interest cost over the life of the 15-year loan? 30-year mortgage monthly payment? What is the total interest cost over the life of the 30-year loan? Difference in interest costs between a 15-year and a 30-year mortgage?

25. The annual payment necessary to amortize (pay off) a 5% $200,000 loan with a 20...

25. The annual payment necessary to amortize (pay off) a 5% $200,000 loan with a 20 year repayment period (annual end of year payments required) is __________________ 26. A prospective new creditor (a vendor for materials purchases) is evaluating financial ratios for ABC Company. The creditor is likely most interested in the __________ ratios a. inventory management related b. return on equity related c. return on assets related d. liquidity related 27. ABC Inc. signs a note payable in the...

You are buying a house for $350,000 with a 20% down payment. You use a 30-year...

You are buying a house for $350,000 with a 20% down payment. You use a 30-year monthly amortized mortgage at a 5.75% nominal interest rate. Monthly payments are &1,634. What is the estimated payoff on the mortgage after you have paid for 10 years?

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 20-year mortgage at a rate of 9 %. Find (i) the monthly payment: $ (ii) the total amount of interest paid: $ b) a 15-year mortgage at a rate of 9 %. Find (i) The monthly payment: $ (ii) the total amount of interest paid: $

Mr. Smith is purchasing a $ 160000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 160000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 20-year mortgage at a rate of 10 %. Find (i) the monthly payment: $ equation editor Equation Editor (ii) the total amount of interest paid: $ equation editor Equation Editor b) a 15-year mortgage at a rate of 10 %. Find (i) The monthly payment: $ equation editor Equation Editor...

Consider a 15 year mortgage with a 3% APR interest rate and a 20% down payment...

Consider a 15 year mortgage with a 3% APR interest rate and a 20% down payment if you can afford a $1500 monthly payment, how expensive a house can you buy? a. $254,250 b. $217,208 c. $271,510 d. $298,402

"I recently bought a new house for $200,000. There was a 20% down payment, and the...

"I recently bought a new house for $200,000. There was a 20% down payment, and the rest was financed at 4.8 percent APR with monthly compounding. Monthly payments starting from next month will be $1,248.66. How many years will it take the firm to pay off this debt?" Please let me know values used in calculator or any formulas.

I recently bought a new house for $200,000. There was a 20% down payment, and the...

I recently bought a new house for $200,000. There was a 20% down payment, and the rest was financed at 4.8 percent APR with monthly compounding. Monthly payments starting from next month will be $1,248.66. How many years will it take the firm to pay off this debt?

Question