A mortgage balance of $23,960 is to be repaid over a 7-year term by equal monthly payments of 6.8% compounded semiannually. At the request of the mortgagor, the monthly payments were set at $440. How many payments will the mortgagor have to make? What is the size of the last payment? Determine the difference between the total actual amount paid through $440 payments and the total amount required through normal amortization at 6.8% to amortize the mortgage by the contractual monthly payments.

A mortgage balance of $23,960 is to be repaid over a 7-year term by equal monthly payments of 6.8% compounded semiannually. At the request of the mortgagor, the monthly payments were set at $440. How many payments will the mortgagor have to make? What is the size of the last payment? Determine the difference between the total actual amount paid through $440 payments and the total amount required through normal amortization at 6.8% to amortize the mortgage by the contractual monthly payments.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

See similar textbooks

Similar questions

A mortgage balance of $26,000 is to be repaid over a 12-year term by equal monthly payments at 4.9% compounded semi-annually. At the request of the mortgagor, the monthly payments were set at $425 (a) How many payments will the mortgagor have to make? (b) What is the size of the last payment? (c) Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the total actual amount paid. (a) The mortgagor will have to make payments. (Round up to the nearest whole number)
A mortgage balance of $ 29,000 is to be repaid over a 10-year term by equal monthly payments at 5.5% compounded semi annually. At the request of the mortgagor, the payments were set at $400 (a) How many payments will the mortgagor have to make? (b) What is the size of the last payment? (c) Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the total actual amount paid.
A mortgage balance of $28,000 is to be repaid over a 15-year term by equal monthly payments at 4.9% compounded semi-annually. At the request of the mortgagor, the monthly payments were set at $425. (a) (b) What is the size of the last payment? (c) Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the total actual amount paid. How many payments will the mortgagor have to make? (a) The mortgagor will have to make payments. (Round up to the nearest whole number.)
mortgage balance of $25,000 is to be repaid over a 12-year term by equal monthly payments at 3.8% compounded semi-annually. At the request of the mortgagor, the nonthly payments were set at $425. How many payments will the mortgagor have to make? What is the size of the last payment? Determine the difference between the total amount required to amortize the mortgage with the contractual monthly payments rounded to the nearest cent and the c) total actual amount paid.
The balance on a mortgage was $48,200 and an interest rate of 4.50% compounded semi-annually was charged for the remaining 5-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. b. If the monthly payments were set at $998, how long would it take to pay off the mortgage? c. If the monthly payments were set at $998, calculate the size of the final payment.
A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments are to be made monthly. Required: a. Calculate monthly payments. b. Calculate interest and principal payments during month 1. c. Calculate total principal and total interest paid over 25 years. d. Calculate the outstanding loan balance if the loan is repaid at the end of year 10. e. Calculate total monthly interest and principal payments through year 10. f. What would the breakdown of interest and principal be during month 50?
A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1% compounded semi-annually for a six-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the six-year term. (c) If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term?
A homebuyer wishes to take out a mortgage of $200,000 for a 40-year period. What monthly payment is required if the interest rate is 11%? What is the total amount paid during the term of the loan? Carry out all calculations exactly and round the final answers only. Carry out all calculations exactly and round the final answer for the monthly payment to two decimal places and the final answer for the total amount paid to the nearest integer. The required monthly payment is $L The total amount paid during the term of the loan is $
A $87,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is 8.7% compounded semi-annually for a six-year term. (a) (b) Compute the size of the monthly payment. Determine the balance at the end of the six-year term. (c) If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term?
A partially amortizing mortgage is made for $62,000 for a term of 10 years. The borrower and lender agree that a balance of $20,400 will remain and be repaid as a lump sum at that time. Required: a. If the interest rate is 7 percent, what must monthly payments be over the 10-year period? b. If the borrower chooses to repay the loan after five years instead of at the end of year 10, what must the loan balance be? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A $180,000 mortgage is to be amortized by making end of the month payments for 25 years. Interest is 5.62% compounded semi-annually for a four-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the four-year term. (c) If the mortgage is renewed for a five-year term at 5.30% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is (Round to the nearest cent as needed.) ...
A partially amortizing mortgage is made for $75,000 for a term of 10 years. The borrower and lender agree that a balance of $23,000 will remain and be repaid as a lump sum at that time.Required: a. If the interest rate is 7 percent, what must monthly payments be over the 10-year period? b. If the borrower chooses to repay the loan after five years instead of at the end of year 10, what must the loan balance be