You have just sold your house for 1,100,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of 800,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 7.75% APR, how much cash will you have from the sale once you pay off the mortgage?
You have just sold your house for 1,100,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of 800,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 7.75% APR, how much cash will you have from the sale once you pay off the mortgage?
Related questions
1.) Suppose Oppenheimer Bank is offering a 30-year mortgage with an EAR of 6.800%. If you plan to borrow $150,000, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.) Your monthly payment will be $______
2.) You are looking to buy a car and you have been offered a loan with an APR of 6%, compounded monthly.
a. What is the true monthly rate of interest? 0.5%
b. What is the EAR?
3.) You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000.The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Cash that remains after payoff of mortgage is __________
4.) If the rate of inflation is 4.5%, what nominal interest rate is necessary for you to earn a 2.3% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The nominal interest rate is ___%
5.) Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
|
Term |
1 year |
2 years |
3 years |
5 years |
10 years |
20 years |
|
Rate (EAR%) |
5.00% |
4.80% |
4.60% |
4.50% |
4.25% |
4.15% |
What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
A. inverted; higher
B. inverted; lower
C. normal; higher
D. normal; lower
