1. John takes a fully amortizing mortgage for $80,000 at 10 percent interest for 30 years, monthly payments. What will be his monthly payment?
2. Dave wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Dave can afford a monthly payment of $600, principal and interest. If the current interest rate on 30-year, fixed rate mortgages is 9.50 percent, what is the maximum amount of mortgage that Dave could qualify for?
3. Mike qualifies to borrow $120,000 on a mortgage at 9 percent for 30 years, monthly payment.a. What is his monthly payment? b.How much interest does Mike pay on the first year of the mortgage? c. How much does Mike pay on the first loan? d. If he decides to repay the mortgage at the end of the year 3, what is the outstanding balance at the time? e. How much total interest does he pay over this 3 year period?
4. You borrow $75,000 for 30 years with monthly amortization, and your payment is $590.03. What is the interest rate being charged?