Question

In: Finance

If you borrowed $200,000 - what would your monthly loan payment be? Rate: 2.94 Time: 30...

If you borrowed $200,000 - what would your monthly loan payment be?

Rate: 2.94

Time: 30 years

If you borrowed $200,000 - what would your monthly loan payment be?

Rate: 7.85

Time: 30 years

Please show work / calculator button

Solutions

Expert Solution

Loan amount = Present value of future monthly payments = monthly payment * [1-(1+i)^-n]/i

i = interest rate per period

n = numbber of periods

a)

monthly payment * [1-(1+0.0294/12)^-360]/(0.0294/12) = 200000

=>

monthly payment = 836.75

b)

monthly payment * [1-(1+0.0785/12)^-360]/(0.0785/12) = 200000

=>

monthly payment = 1446.67

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

On a 30-year, fixed-rate loan with a monthly payment of $1,000 and an interest rate of...
On a 30-year, fixed-rate loan with a monthly payment of $1,000 and an interest rate of 9%, what is the outstanding balance due on the loan with after the borrower has made 18 years of payments?
Find the monthly payment for a 25-year fixed-rate loan of $200,000 at 5% annual interest.
Find the monthly payment for a 25-year fixed-rate loan of $200,000 at 5% annual interest.
You take out a 30-year $200,000 mortgage loan with an APR (monthly) of 4.5% and monthly...
You take out a 30-year $200,000 mortgage loan with an APR (monthly) of 4.5% and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The...
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 2%, after that, the rate can reset with a 7% annual payment cap. On the reset date, the composite rate is 6%. Assume that the loan allows for negative amortization. What would be the outstanding balance on the loan at the end of Year 3?
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The...
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a “teaser” rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. What would the Year 3 monthly payment be? with the way please.
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The...
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a “teaser” rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. What would the Year 3 monthly payment be? $955 $1,003 $1,067 $1,186 Because of the payment cap, the payment would not change.
2. A What is the monthly payment amount on a $100,000 home loan if the rate...
2. A What is the monthly payment amount on a $100,000 home loan if the rate is 8.0% APR, and the loan is made for a 15-year period? B A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 6% per year. What is the investment’s future value? Remember, the deposits are made at the beginning of each year (annuity due).
You take out a $200,000 mortgage for 20 years at 6%. a. What is your monthly payment?
You take out a $200,000 mortgage for 20 years at 6%.a. What is your monthly payment?b. What is the principle and interest on the first payment?c. What is the principle and interest on the twelfth payment?d. How much interest will you pay over the 20 years?
1. What would be the monthly payment on a 5 year loan of $35,000 if the...
1. What would be the monthly payment on a 5 year loan of $35,000 if the interest rate is 6.0% compounded monthly? 2. Sarah bought a raft for $664 using her credit card. The interst rate is 0.186 compounded monthly. If she pays $23 a month, how long will it take her to pay off the credit card? 3. What would be the monthly payment on a 5 year loan of $24,000 if the interest rate is 5.0% compounded monthly?
The monthly payment on a loan may be calculated by the following formula: Payment =    Rate *...
The monthly payment on a loan may be calculated by the following formula: Payment =    Rate * (1 + Rate)N ((1 + Rate)N -1) Rate is the monthly interest rate, which is the annual interest rate divided by 12. (12 percent annual interest would be 1 percent monthly interest.) N is the number of payments, and L is the amount of the loan. Write a program that asks for these (Input) values then displays a report similar to: Loan Amount:            $...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT