A $100,000 mortgage is amortized over 20 years with monthly payments at an interest rate of 8% compounded semi-annually. Suppose you paid an extra $1000 at the end of each year, how many years, would it now take to pay off the mortgage and how much interest would be paid over the life of the mortgage?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityCalculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?You buy a house for $1,200,000 using a 30-year mortgage. The annual interest rate is 3%. Payments are made at the beginning of the time period. What is the total principal paid over the 20 year life of the mortgage?
- PleaseAssume we have a $500,000 mortgage at a 3.5% original interest rate, 30-year term, and monthly payments. The interest rate can be adjusted at the end of each year, and we assume the rate increases by 0.25% after the first year. What is the monthly payment for the 4th year of the loan?suppose a 25- year mortgage of $400,000 at a fixed nominal interest rate of 3.5% per year, compounded annually. 1. what is the yearly payment? 2. what are the interest paid and the principal repayment in the first year?
- Suppose you secure a $250,000 mortgage loan to be paid off over 30 years at an annual interest rate of 7.1% compounded monthly. What is the monthly payment needed to amortize this loan, rounded to the nearest dollar?$200,000 mortgage is amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually. Suppose you made a single lump sum payment of $6000 at the end of the second year of the mortgage. ). How long would it now take to pay off the mortgage (calculate the number of years)? How much interest is paid over the life of the mortgageConsider a 20-year mortgage for $174,334 at an annual interest rate of 5%. After 8 years, the mortgage is refinanced to an annual interest rate of 2.6%. What are the monthly payments after refinancing? Round your answer to the nearest dollar.
- Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Set up an amortization schedule that shows the annual payments and the amount of each payment that repays the principal and the amount that constitutes interest expense to the borrower and interest income to the lender.Original amount of mortgage: 50000 Term of mortgage: 10 Interest rate: 0.08 Annual payment (use PMT function): ?Year Beg. Amt. Pmt Interest Principal End. Bal. 1 2 3 4 5 6 7 8 9 10 Create a graph that shows how the payments are divided between interest and principal repayment over time.You purchase a home and have a $200,000 mortgage for 20 years at 5%. Utilize an amortization schedule. What are the periodic annual payment required for the mortgage? What are the interest payment for the first year? What is the first year principal repayment What is the balance owed at the end of the first year? What are the interest paid on the principal repayment for the second year ? What is the balance owed at the end of the second year ? Why did the interest paid on the principal repayment change in the second year?The maturity of the balloon loan is 5 years, amortization period is 30 years, loan amount is $85,000 with annual interest rate 4.5% and monthly payments. What is the monthly payment for this balloon mortgage? What is the balloon payment at the end of five years for this balloon mortgage?
