Suppose you found the house that you have been looking for years! It comes with a price tag of $210,000. As luck would have it, you also found a bank that is running special where they will finance your house if you put down 10% down payment, meaning you will be borrowing 90% of the price tag. The loan comes with a 3.5% APR over 30 years. How much would be your monthly payment amount? (Round up your answer to two decimal point) Fill out all the blank boxes below. Fill in the answer for every box and show how you got the numbers (meaning, write the calculations to show how you got each of the answer). For example, if the answer for the "Applied to interest" for the 1st Month is $100 then show how you got to $100. (i.e., ?+ ? = $100). Beg. Loan Bal Month 1 2 3 $ Monthly payment Amount: $ $ Monthly Payment Applied to Interest Applied to Principal $ $ $ $ $ $ $ $ $ $ Ending Loan Bal

Suppose you found the house that you have been looking for years! It comes with a price tag of $210,000. As luck would have it, you also found a bank that is running special where they will finance your house if you put down 10% down payment, meaning you will be borrowing 90% of the price tag. The loan comes with a 3.5% APR over 30 years. How much would be your monthly payment amount? (Round up your answer to two decimal point) Fill out all the blank boxes below. Fill in the answer for every box and show how you got the numbers (meaning, write the calculations to show how you got each of the answer). For example, if the answer for the "Applied to interest" for the 1st Month is $100 then show how you got to $100. (i.e., ?+ ? = $100). Beg. Loan Bal Month 1 2 3 $ Monthly payment Amount: $ $ Monthly Payment Applied to Interest Applied to Principal $ $ $ $ $ $ $ $ $ $ Ending Loan Bal

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use an excel spreadsheet to show steops to solve the following : You buy a house of $450,000 today. You put a down payment of 20% and borrow a fixed-rate mortgage of $360,000 with interest rate of 4% and 15 years. After 3 years, your house is appreciated to the value of $550,000 and market interest rate goes up to 6.5%. How much money will you make in book after 3 years?
. Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings account and deposit a lump sum amount of $2,000. You want to make a monthly payment at an interest rate of 4.5%. What should be the constant monthly payment you should make to reach the goal of $15,000 after 3 years? Explain in excel
Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments. Answer the following questions about this loan. After making 240 monthly payments, how much of what you paid the bank was interest? $ . ROUND TO THE NEAREST CENT. THANKS APPRECIATE THE HELP!!!
Suppose you want to buy a $140,000 home. You found a bank that offers a 30-year loan at 3.3% APR. What will be your monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) $ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) S How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) S Search hp
there is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20 years at a 2% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel.
Please make an excel spreadsheet and show the formulas in the cells for the problem below and please explain You buy a house of $450,000 today. You put a down payment of 20% and borrow a fixed-rate mortgage of $360,000 with interest rate of 4% and 15 years. After 3 years, your house is appreciated to the value of $550,000 and market interest rate goes up to 6.5%. How much money will you make in book after 3 years?
Suppose you want to buy a $144,000 home. You found a bank that offers a 30-year loan at 3.3% APR.A. What will be your monthly payment? (Round to the nearest cent.)B. How much would you end up paying the bank in total for the home after 30 years? (Round to the nearest cent.)C.Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment (assume the same interest rate)? (Round to the nearest cent.)D. How much would you end up paying the bank in total for the home after 25 years? (Round to the nearest cent.)E. How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
You are planning to purchase a house that will require some renovations. 1. You will have a $400,000 mortgage for 20 years at the rate of 4.25%. What will yourmonthly payment be?2. If you take the full term of the loan, how much interest will you have paid?3. You decide to do some remodeling. You are looking at borrowing $7500 at the simpleinterest rate of 2% per year. You want to pay a maximum of $600 interest. How longwill the loan need to be to meet this maximum interest of $600.00?4. If you decide to put a $3000.00 bonus from your employment in a savings account thatpays 2% interest compounded monthly, how much interest would you have earnedafter 4 years?
Suppose you are buying a house. You find the perfect one for $215,000. The bank offers you a 30-year fixed rate mortgage with 6.25% interest, compounded monthly. A. If you finance the entire amount (no down payment), what will your monthly payments be? B. Suppose you decide to make a down payment of 20% of the cost of the house. How much is your down payment? C. With the 20% down payment, how much will your monthly payments be? D. How much will you have paid on the mortgage at the end of 30 years in the different situations?
Suppose you want to buy a $143,000 home. You found a bank that offers a 30-year loan at 3.9% APR.A. What will be your monthly payment? (Round to the nearest cent.)B. How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.)C. Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) D.How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) E. How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
you have just taken out a 5 year laon frm a bank to buy an engagement ring. The ring costs $5000. You plan to put down $1000 and borrow $4000. you will need to make annual payments of $1000 at the end of each year. show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective?
You buy a rental property, taking out a 15 year loan with monthly payments and a mortgage rate of 4.7%. Your plan is to pay down the remaining balance after 7 years. How much will that balance be if the value of the loan is $250,000? (Answer to nearest dollar. HINT: you must find the payment before you can find the balance.)

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