aYou want to buyhouse that costs$170,000. You have $17,000 for a downpayment, but your credit is such thatmortgage companies will not lend you therequired $153,000. However, the realtor persuadesthe seller to take $153,000 mortgage calleda seller take-back mortgage) at a rate of 8%provided the loan is paid off in full in 3 years.expect to inhent $170,000 in 3 years, butlight now all you have is $17,000 andyou canafford to make payments of no more than$19,000 per year given your salary. (The loanwould call for monthly payments, but assumethings.)end-of-year annual payments to simplifypa) If the loan was amortized over 3 years,how large would each annual payment be? Roundyour answer to the nearest centb) If the loan was amortized over 30 years,What would each payment be? Round your answerto the nearest cent.C) To satisfy the seller, the 30-year mortgage loan wouldbe written as a balloun note, which means at the endof the third year, you would have to make the aYou want to buyhouse that costs$170,000. You have $17,000 for a downpayment, but your credit is such thatmortgage companies will not lend you therequired $153,000. However, the realtor persuadesthe seller to take $153,000 mortgage calleda seller take-back mortgage) at a rate of 8%provided the loan is paid off in full in 3 years.expect to inhent $170,000 in 3 years, butlight now all you have is $17,000 andyou canafford to make payments of no more than$19,000 per year given your salary. (The loanwould call for monthly payments, but assumethings.)end-of-year annual payments to simplifypa) If the loan was amortized over 3 years,how large would each annual payment be? Roundyour answer to the nearest centb) If the loan was amortized over 30 years,What would each payment be? Round your answerto the nearest cent.C) To satisfy the seller, the 30-year mortgage loan wouldbe written as a balloun note, which means at the endof the third year, you would have to make the

The mortgage is a long-term amortized loan that is used to purchase fixed assets, generally houses.…

the You want to buy a house that costs $170,000. You have $17,000 for a down payment, but your credit is such that Mortgage companies will not lend required $153,000. However, the realtor persuades you the seller to take $153,000 mortgage called a seller take-back mortgage) at a rate of 8% provided the loan is paid off in full in 3 years. You expect to inhen't $170,000 in 3 years, but right now all you have is $17,000 and afford to make payments of no more than you can $19,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.) a) If the loan was amortized over 3 years, how large would each annual payment be? Round your answer to the nearest cent b) If the loan was amortized over 30 years, What would each payment be? Round to the nearest cent. your answer C) To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means at the end of the third year, you would have to make the

the You want to buy a house that costs $170,000. You have $17,000 for a down payment, but your credit is such that Mortgage companies will not lend required $153,000. However, the realtor persuades you the seller to take $153,000 mortgage called a seller take-back mortgage) at a rate of 8% provided the loan is paid off in full in 3 years. You expect to inhen't $170,000 in 3 years, but right now all you have is $17,000 and afford to make payments of no more than you can $19,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.) a) If the loan was amortized over 3 years, how large would each annual payment be? Round your answer to the nearest cent b) If the loan was amortized over 30 years, What would each payment be? Round to the nearest cent. your answer C) To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means at the end of the third year, you would have to make the

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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