Log in
Finance
2
answers
0
watching
128
views

Suppose you borrow $220,000 to purchase a home. The loan will be repaid over the course of 30 years with equal monthly payments. The annual interest rate on the loan is 4.2% compounded monthly, giving monthly payments of $1,075.84.

A.) How much interest is due on the first payment? How much interest is due on the second payment?

B.) What will the unpaid loan balance be after 10 years of payments?

C.) If you can afford monthly payments of $1,400, then how much could you have borrowed under the same loan conditons (interest rate and number of payments)?

Watch
2
answers
0
watching
128
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Tod Thiel
Tod ThielLv2
28 Sep 2019
Already have an account? Log in
Share

Related questions

Mortgage payment. You borrow $350,000 for your home at a 4.5% APR rate, where you will make equal monthly payments over 30 years to payoff the loan.

-How much would your monthly payment be?

-After 72 months of making payments, what is the remaining balance on your mortgage loan?

Answers are 324 and 690. Not sure how to arrive at answers.

C. You borrow $50,000 5 year loan to make renovations to a house. The interest rate on this loan is 8% per year. The loan calls for equal monthly payments.

What is the monthly payment on this loan?

When you make the third payment, how much of the payment is interest?

How much is principal?

5. You borrowed $3000 at 9% per annuum calculated on the unpaid monthly balance and agreed to repay the principal together with interest in monthly payments of $500 each.（1）How much is the outstanding balance of the loan right after the first payment?（2） How much is the outstanding balance of the loan right after the second payment?（3）How many $500 payments will be made before the last smaller payment to pay off the loan?（4） How much will be the last payment?

6. $850 was invested in an bank account at interest 3.6% compounded quarterly for four years.（1）How much money will be in the account at the end of four years?（2） How much interest will be from this investment at the end of four year?

7. $1500 are invested at 7.2% compounded monthly for seven years.（1）How much is the mature value at the end?（2）How much interest will be earned at the end?

8. David borrowed $5000 at 10% compounded semi-annually. He repaid $2000 after two years from now and $2500 after three years from now.（1）How much is the outstanding balnce of his debt right after his payment at the end of two years?（2）How much is the outstanding balnce of his debt right after his payment at the end of three years?？（3）How much will he still owe after five years?

9. A variable rate demand loan showed an initial balance of $12000, payments of $5000 after 18 months, $4000 after 30 months, and a final payment after 5 years.Interest was 11% compounded semi-annually for the first two years and 7.5% compounded monthly for the remaining time.（1）What is the outstanding balance of the loan after the first payment at the end of 18 months?（2） What is the outstanding balance of the loan after the second payment at the end of 30 months?（3）What was the size of the final payment?

10. You made a registered retirement savings plan deposit of $1000 on December 1, 2008, at a fixed interest rate of 3% compounded monthly. If you withdraw the deposit on August 1, 2015, how much will you receive? How much interest will you have made?

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in