Question

In: Finance

You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge...

  1. You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge interest at the rate of 9% annually and requires a minimum monthly payment of $500. At the end of five years, you must pay off the entire mortgage by a “balloon payment”. You plan to pay only the minimum amount each month and then pay off the loan with the final payment. Find this balloon payment. (Answer: $49966.07)

please answer in excel format

Solutions

Expert Solution

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks


Related Solutions

On 1/1/20x1 you have borrowed $450,000 from a mortgage bank to buy a new house, and...
On 1/1/20x1 you have borrowed $450,000 from a mortgage bank to buy a new house, and wish to repay the mortgage loan and the interest in 5 equal annual payments, the first one being payable on 12/31/20x1. The mortgage loan bears interest at 7%.         a) Calculate the annual mortgage payment required. Round off to the nearest cent (e.g.,    $112,753.32). b) Construct the mortgage payment schedule to see if the loan and interest will be paid    in full...
You borrowed $270,000 for 30 years to buy a house with a graduated payment mortgage with...
You borrowed $270,000 for 30 years to buy a house with a graduated payment mortgage with an interest rate of 5.25% per year. The first year’s monthly payments are $1,123.74, and the payments increase 7.0% per year for five years. What is the monthly payment at the beginning of the third year? Question 14 options: 1) $1,376.63 2) $1,472.99 3) $1,576.10 4) $1,286.57 5) $1,328.95
This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The...
This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The loan is to be repaid in equal monthly payments over 20 years with the first payment due one month from today. Assume each month is equal to 1/12 of a year and all taxes and insurance premiums are paid separately. How much of the five payment applies to the principal balance?
You decide to buy a house for a total of $214452. To get a mortgage loan,...
You decide to buy a house for a total of $214452. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is 5% APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage?
On June 1, you borrowed $230,000 to buy a house. The mortgage rate is 8 percent....
On June 1, you borrowed $230,000 to buy a house. The mortgage rate is 8 percent. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on July 1. Assume that each month is equal to 1/12 of a year. How much of the second payment (on August 1) applies to the principal balance? $ How much of the second payment (on August 1) is interest? $ How much of the third...
#1) On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 5.20...
#1) On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 5.20 percent. The loan is to be repaid in equal monthly payments over 15 years. How much of the first payment applies to the principal balance? $714.43 $722.50 $717.51 $756.70 $658.56 #13) You want to borrow $34,800 and can afford monthly payments of $960 for 48 months, but no more. Assume monthly compounding. What is the highest APR rate you can afford? 13.18 percent 14.52...
1.You decide to buy a house for a total of $198842. To get a mortgage loan,...
1.You decide to buy a house for a total of $198842. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is 6% APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage? 2.A company has $96 million in outstanding bonds, and 10 million shares of stock...
You borrow $149000 to buy a house. The mortgage rate is 7.5% and the loan period...
You borrow $149000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. What is the monthly mortgage payment.
You borrowed $220,000 for 30 years to buy a house. The mortgage, which has constant monthly...
You borrowed $220,000 for 30 years to buy a house. The mortgage, which has constant monthly payments and is fully amortizing, has an interest rate of 4.75% per year. What is the amount of interest you pay in the third year? Question 2 options: 1) $9,941 2) $10,107 3) $9,972 4) $10,088 5) $10,039
The bank has agreed to give you a mortgage for $400,000 to buy a new house....
The bank has agreed to give you a mortgage for $400,000 to buy a new house. Current mortgage rates have an APR of 4% compounded semi-annually for a term of 25 years. How much interest will you pay in total over the life of the loan? Select one: a. $121,433.25 b. $143,645.25 c. $231,224.25 d. $237,378.25 e. None of the above.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT