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Ann found an apartment that costs $800,000 to buy. She will make a $100,000 down payment and will get a mortgage for $700,000. It will
Ann found an apartment that costs $800,000 to buy. She will make a $100,000 down payment and will get a mortgage for $700,000. It will be a fully amortizing 30-year fixed rate mortgage at 4.25% with monthly payments and monthly compounding. The following 6 questions will use this information. (round all answers 2 decimal places. do not include commas or dollar signs in responses, enter percentages as whole numbers, i.e. 4.952% should be entered as 4.95) a) What is Ann's Loan to Value ratio when she gets the loan? b) What will Ann's monthly mortgage payment be? c) What will be the balance on Ann's mortgage after the 7th monthly payment? d) How many dollars is Ann paying in interest in her gth monthly mortgage payment? e) How many dollars of Ann's 8th monthly mortgage payment will be principal? f) What is the total sum of all cash flows that Ann will pay the bank over the entire life of the loan, assuming she never prepays
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