Question

In: Finance

Dagny Taggart has just purchased a home and taken out a​ $400,000 mortgage. The mortgage has...

Dagny Taggart has just purchased a home and taken out a​ $400,000 mortgage. The mortgage has a 30−year term with monthly payments and has an APR of​ 5.4%.

The total amount of interest that Dagny will pay during the first three months of her mortgage is closest​ to:

A. ​$1345

B. ​$6740

C. ​$5395

D. $5380

Solutions

Expert Solution

Mortgage = $400000

Number of monthly payment = 30*12 =360

Monthly Rate = 5.4/12 = 0.45%

Interest Paid in First Month = 1800

Interest Paid in First Month = 1798

Interest Paid in First Month = 1796

Total Interest Paid = 5394 Answer

Option C is correct.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

You have just purchased a home and taken out a $410,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $410,000 mortgage. The mortgage has a 30​-year term with monthly payments and an APR of 5.12%. a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year? b. How much will you pay in​ interest, and how much will you pay in​ principal, during the 20th year​ (i.e., between 19 and 20 years from​ now)?
You have just purchased a home and taken out a $590,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $590,000 mortgage. The mortgage has a ​30-year term with monthly payments and an APR of 5.92%. a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year? b. How much will you pay in​ interest, and how much will you pay in​ principal, during the 20th year​ (i.e., between 19 and 20 years from​ now)?
You have just purchased a home and taken out a $440,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $440,000 mortgage. The mortgage has a 30​-year term with monthly payments and an APR of 5.28%. a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year? b. How much will you pay in​ interest, and how much will you pay in​ principal, during the 20th year​ (i.e., between 19 and 20 years from​ now)?
You have just purchased a home and taken out a $440,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $440,000 mortgage. The mortgage has a 30 year term with monthly payments and an APR of 5.92%. How much will you pay in interest, and how much will you pay in principal during the first year? How much will you pay in interest and how much will you pay in principal during the 20th year?
You have just purchased a home and taken out a $480,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $480,000 mortgage. The mortgage has a 30​-year term with monthly payments and an APR of 6.80%. a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year? b. How much will you pay in​ interest, and how much will you pay in​ principal, during the 20th year​ (i.e., between 19 and 20 years from​ now)?
You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a...
You have just purchased a home and taken out a $540,000 mortgage. The mortgage has a 30​-year term with monthly payments and an APR of 7.44%. a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year? b. How much will you pay in​ interest, and how much will you pay in​ principal, during the 20th year​ (i.e., between 19 and 20 years from​ now)?
You have just taken out a 30‑year mortgage on your new home for$103,104. This mortgage...
You have just taken out a 30‑year mortgage on your new home for $103,104. This mortgage is to be repaid in 360 equal monthly installments. If the stated (nominal) annual interest rate is 13.35 percent, what is the amount of each of the monthly installments? (Note: The convention when periodic payments are involved is to assume that the compounding frequency is the same as the payment frequency, unless stated otherwise. Thus this implies 13.35 % APR, compounded monthly for this...
Johanna just purchased a home and took out a $180,000 mortgage for 20 years at 5%,...
Johanna just purchased a home and took out a $180,000 mortgage for 20 years at 5%, compounded monthly. a. How much is Johanna’s monthly mortgage payment? b. Prepare an amortization table for the traditional 20-year mortgage. c. Assume Johanna makes her normal mortgage payments and at the end of four years, she refinances the balance of her loan at 3%. If she continues to make the same mortgage payments, how soon after the first four years will she pay off...
Adam just purchased a home and took out a RM250,000 mortgage for 30 years at 8%,...
Adam just purchased a home and took out a RM250,000 mortgage for 30 years at 8%, compounded annually.(a) How much is Adam’s yearly mortgage payment? (b) Find the outstanding principal after five years using Prospective Method. Ans: (a) RM 22206.86 (b) RM 237,053.13
Assume you have just taken out a new home mortgage. You will borrow $200,000 and make...
Assume you have just taken out a new home mortgage. You will borrow $200,000 and make equal annual payments for 20 years. a. If the interest rate is 10% per year, how much will the payments be if you pay interest on the unpaid balance each year? b. Construct an amortization schedule for the first two years. (There should be 5 columns: end of year, Payment, interest, principal repayment, balance; remember, you borrow today, the end or year 0) c....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT