Question
1. Suppose that you borrowed $200,000 in the form of a 30-year fixed-rate mortgage with an annual interest rate of 3% with monthly payments and
1. Suppose that you borrowed $200,000 in the form of a 30-year fixed-rate mortgage with an annual interest rate of 3% with monthly payments and monthly compounding. You must pay 2 points for this loan. What will your monthly payment be for this loan (Round your answer to two decimal places)?
2. You are buying a $250,000 house for 20% down, with the rest financed at 3% for 30 years with fixed monthly payments. You must pay 2 points for the loan. At the end of 6 years, you sell the house. How much do you owe on the loan? (Round your answer to two decimal places)
3. Suppose that you borrowed $200,000 in the form of a 30-year fixed-rate mortgage with an annual interest rate of 3% with monthly payments and monthly compounding. How much of the 50th payment consists of principal? (Round your answer to two decimal places)
4. Suppose that you borrowed $200,000 in the form of a 30-year fixed-rate mortgage with an annual interest rate of 3% with monthly payments and monthly compounding. How much interest will you pay in the 16th year? (Round your answer to two decimal places)
5. Suppose that you borrowed $200,000 in the form of a 30-year fixed-rate mortgage with an annual interest rate of 3% with monthly payments and monthly compounding. How much principal will you pay in the 1st year? (Round your answer to two decimal places)
6. Suppose you borrow $250,000 for 5-years, interest only loan at 3%? You have made monthly payments for 5 years. What is the outstanding loan balance after 5 years?
7. What is the monthly payment on a $300,000, 5% loan amortized over 30 years with a maturity of 5 years? (Round your answer to two decimal places)
8. What is the balloon payment due at the end of 5 years on a $300,000, 5% loan amortized over 30 years with a maturity of 5 years? (Round your answer to two decimal places)
9. Consider a 20-year loan with a monthly payment of $1,897.95 and an annual interest rate of 4.5 percent. What was the original loan size?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started