Question
In: Finance
The next four questions are related to your purchase of your first home for $600,000. You...
The next four questions are related to your purchase of your first home for $600,000. You have just purchased the house and have put a 20% down payment, and will borrow the remaining amount. The 15-year fixed rate loan has an Annual Percentage Rate (APR) of 3.875%. You will make monthly payments for the life of the loan. You have made payments for the first year of the loan. How much have you paid in interest for the first year of the loan? Select one: a. $19,000 to $21,000 b. Less than $15,000 c. More than $21,000 d. $17,000 to $19,000 e. $15,000 to $17,000
Solutions
Expert Solution
Monthly EMI formula=P*monthly interest*((1+monthly interest)^n)/((1+monthly interest)^n)-1
P=$480,000 (80%*$600,000)
EMI=480,000*(3.875%/12)*((1+(3.875%/12))^180)/((1+(3.875%/12)^180)-1
EMI=3520.51
Sum of interest
paymets=$18,175.48 which lies in between $17000 to $19000.
Option d is correct
jeff jeffy answered 1 year agoRelated Solutions
The next four questions are related to your purchase of your first home for $600,000. You...
The next four questions are related to your purchase
of your first home for $600,000.
You have just purchased the house and have put a 20% down
payment, and will borrow the remaining amount. The
15-year fixed rate loan has an Annual Percentage Rate (APR) of
3.875%. You will make monthly payments for the
life of the loan.
You've made mortgage payments for the first year of the loan.
How much have you made in principal payments. Stated differently,
by how much...
The next four questions are related to your purchase of your first home for $600,000. You...
The next four questions are related to your purchase
of your first home for $600,000.
You have just purchased the house and have put a 20% down
payment, and will borrow the remaining amount. The
15-year fixed rate loan has an Annual Percentage Rate (APR) of
3.875%. You will make monthly payments for the
life of the loan.
You have made payments for the first year of the loan. How much
have you paid in interest for the first year of the...
The next four questions are related to your purchase of your first home for $600,000. You...
The next four questions are related to your purchase of your
first home for $600,000. You have just purchased the house and have
put a 20% down payment, and will borrow the remaining amount. The
15-year fixed rate loan has an Annual Percentage Rate (APR) of
3.875%. You will make monthly payments for the life of the loan.
How much is your monthly mortgage payment? Select one: a. $3,500 to
$4,000 b. $2,500 to $3,000 c. Less than $2,500 d....
Answer the following questions that are related to your purchase of your first home for $500,000....
Answer the following questions that are related to your
purchase of your first home for $500,000.
You have just purchased the house and have put a 20% down
payment, and will borrow the remaining amount. The 15-year fixed
rate loan has an Annual Percentage Rate (APR) of 3.75%. You will
make monthly payments for the life of the loan.
Q1: Your effective interest rate is closest to which of the
following?
a. 3.815%
b. 3.687%
c. 3.880%
d. 3.750%
Q2....
You are getting ready to purchase your first home. You wish to purchase a $400,000 home...
You are getting ready to purchase your first home. You wish to
purchase a $400,000 home and the bank requires a 20% deposit. Your
father-in-law will provide whatever amount you need after using the
governments Homestart scheme and you withdraw your savings from
Kiwisaver. Interest rates on a 20-year mortgage with fortnightly
payments are 6 percent per annum.
a. What will your fortnightly payment be on a 20 year
mortgage?
b. After 5 years of paying off this mortgage, you...
You and your family have recently closed on the purchase of your first home and you...
You and your family have recently closed on the purchase of your
first home and you are excited. You are in need of furniture and
appliances for your new home. You have decided to purchase some of
the items from eBay and have found a dining room set and living
room furniture from a private seller on eBay’s website. You look at
the pictures on the website and notify the seller through email
that you would like to purchase these...
You are looking to purchase your first home and have picked one out. The house costs...
You are looking to purchase your first home and have picked one
out. The house costs $287,000.00, and you saved up 8% in cash and
you will need to get a loan/mortgage for the remainder of the
purchase price. You also need to get private mortgage insurance,
which will cover 25% of your loan amount in the event of default.
The PMI involves a 3.5% of loan premium due at closing, which will
be added to the loan balance. The...
You are about to purchase your first home and receive an advertisement regarding adjustable-rate mortgages (ARMs)....
You are about to purchase your first home and receive an
advertisement regarding adjustable-rate mortgages (ARMs). The
interest rate on the ARM is lower than that on a fixed rate
mortgage. The advertisement mentions that there would be a payment
cap on your monthly payments and you would have the option to
convert to a fixed-rate mortgage. You are tempted. Interest rates
are currently low by historical standards and you are anxious to
buy a house and stay in it...
After working for three years, you decide to purchase your first home, which has a sales...
After working for three years, you decide to purchase your
first home, which has a sales price of $350,000. With $70,000 down
payment, what is your monthly mortgage payments for a 30-year loan
at an annual interest rate of 4.75%. Assume the payments are made
at the end of each period (i.e., ordinary annuity).
a) Calculate the monthly installments
b) Build an amortization table for the life of loan. For each
payment, show the beginning loan balance, interest payment,
principal...
You want to finance the purchase of a home with a first and second mortgage sothat...
You want to finance the purchase of a home with a first and
second mortgage sothat you can put less money down. The purchase
price of the property is$324,000. Financing on the first without a
second at 80% LTV has a rate of 4.5%,30 year term. Financing on the
second mortgage, which covers 10% of thepurchase price has a rate
of 6.25%, 15 year term. How much will your combinedmortgage payment
be?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A conductive sphere with radius ? = 1 ? has been increased to the potential ?0...
- Define a char variable. Read a char value from the keyboard into the variable. Print the...
- If you wanted to store a birthday within code, what class would you use in Java?...
- Explain what is meant by the Theme Park internal and external business environment and use the...
- Description Write a program that prints out your name, the course ID of this class, what...
- A project has an initial cost of $65,475, expected net cash inflows of $12,000 per year...
- Make a program that lets the user enter a positive or negative integer as many times...
ADVERTISEMENT