(1) Emily Morrison purchased a new house for $100,000. She paid $40,000 upfront and agreed to...

(1) Emily Morrison purchased a new house for $100,000. She paid $40,000 upfront and agreed to pay the rest over the next 20 years in 20 equal annual payments that include principal payments plus 9 percent compound interest on the unpaid balance. What will these equal payments be? a. Emily Morrison purchased a new house for $100,000 and paid $40,000 upfront. How much does she need to borrow to purchase the house(Round to the nearest dollar.)

(2) To pay for your education, you've taken out $23,000 in student loans. If you make monthly payments over 11 years at 8 percent compounded monthly, how much are your monthly student loan payments? The monthly payment of your student loan is ? (Round to the nearest cent.)

(3) To buy a new house, you must borrow $160,000. To do this, you take out a $160,000, 35-year, 8 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 8 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $?. (Round to the nearest cent.)

(4) To buy a new house, you must borrow $160,000. To do this, you take out a $160,000, 35-year, 8 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 8 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $? (Round to the nearest cent.)

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Question 1

Sol:

Home Purchase value = $100,000

Upfront payment made = $40,000

Amount needs to borrow to purchase the house will be = $100,000 - $40,000 = $60,000

Loan value (PV) = $60,000

Period (NPER) = 20

Interest rate = 9%

To determine equal payments to be made we can use PMT function in excel:

Loan value	-60,000
NPER	20
Interest rate	9%
Annual payments	$6,572.79

Therefore annual equal payment to be made will be $6,572.79

Workings

Note = As per Chegg policy I am only allowed to answer one question at a time. Request you to kindly place the other question separately.

jeff jeffy answered 2 years ago

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(1) Emily Morrison purchased a new house for ​$100,000. She paid ​$40,000 upfront and agreed to...

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(1) Emily Morrison purchased a new house for $100,000. She paid $40,000 upfront and agreed to...