Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest rate of 2.75%. Her initial monthly payment is $1,224.72. After 5 years, the interest rate on her loan changes to 3.7%. Calculate her new monthly payment (in dollars) in year 6 of the loan. (See Example 7 in this section. Round your answer to the nearest cent. Assume the length of the loan is 30 years.)

Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest rate of 2.75%. Her initial monthly payment is $1,224.72. After 5 years, the interest rate on her loan changes to 3.7%. Calculate her new monthly payment (in dollars) in year 6 of the loan. (See Example 7 in this section. Round your answer to the nearest cent. Assume the length of the loan is 30 years.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Similar questions

Zoey Bettincourt gets a $400,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest rate of 2.75%. Her initial monthly payment is $1,632.96. After 5 years, the interest rate on her loan changes to 3.5%. Calculate her new monthly payment (in dollars) in year 6 of the loan. (Round your answer to the nearest cent. Assume the length of the loan is 30 years.)
Kim is shopping for a car. She will finance $12,000 through a lender. The table to the right shows the monthly payments per thousand dollars borrowed at various APRS and terms. Use the table to answer parts (a) through (c) below. (a) One lender offers Kim an APR of 6% for a 4-yr term. What would be the amount of Kim's monthly payment? $ APR, r Term, t (in years) 4 5 6 7 8 0.05 $23.03 $18.87 $16.10 $14.13 $12.66 0.055 $23.26 $19.10 $16.34 $14.37 $12.90 0.06 $23.49 $19.33 $16.57 $14.61 $13.14 0.065 $23.71 $19.57 $16.81 $14.85 $13.39 0.07 $23.95 $19.80 $17.05 $15.09 $13.63 0.075 $24.18 $20.04 $17.29 $15.34 $13.88
Jina obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 7.45%. Her loan is for $12,700 for 62 days. Assume eachday is365of a year. Answer each part below.Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.(a) Find the interest that will be owed after 62 days. (b) Assuming Jina doesn't make any payments, find the amount owed after 62 days.
Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $16,500 for 76 days. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) Assuming Keiko doesn't make any payments, find the amount owed after 76 days.
Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 6.7% and a monthly payment of $601.50. After 3 years, Angela decides to purchase a new car. What is the payoff on Angela's loan? (Round your answer to two decimal places.)
Pat Lavoie bought a home for $180,000 with a down payment of $10,000. Her rate of interest is 6% for 30 years. (Round your answer to the nearest cent.) a. Calculate her monthly payment. b. By how much will her loan principal decrease after she makes her first monthly payment? c. Calculate her balance of mortgage at the end of the month.
George borrows $43,000 to buy a car. He will repay the loan through 4 years of equal monthly payments and an annualized interest rate of 3.9%. Think about payment #44 of the loan obligation. How much of this payment will be interest? Enter your answer as a positive number (in dollars), and round to the nearest dollar.
Michaela buys a new car for $31,600. The simple interest rate is 5.6% and the amount of loan (plus simple interest) is repayable in 6 years. What is the total amount that must be repaid? Round your answer to the nearest dollar and do not round until the final answer. Provide your answer below:
Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!
Heather McIntosh recently purchased a home for $175,000. She put $22,500 down and took out a 25-year loan at 6.5 percent interest. Round your answers to the nearest cent. Use Table 9-4 to determine her monthly payment. Round Estimating Mortgage Loan Payments for Principal and Interest in your intermediate calculations to four decimal places. How much of her first payment will go toward interest and principal? Interest will be $ Principal will be $ How much will she owe after that first month? (table 9-2) $ How much will she owe after three months? Do not round intermediate calculations.
enny takes out a new car loan for $41,000 at 5% annual interest rate for 5 years. a. What is Jenny’s monthly payment? Two years later, Jenny has already made 24 monthly payments (of amount calculated in a.) and has 36 remaining payments. What is the remaining principal on the loan? Solve using two methods. b. Solve by calculating the Present Worth of the remaining 36 payments. c. Solve using Excel Spreadsheet function CUMPRINC as discussed on page 165 of text. (note: you should get same answer on b. and c.)
Kristy Joe deposits $130 each month in an ordinary annuity to save for a new car. If the annuity pays a monthly interest rate of 0.91%, how much will she be able to save in 5 years? Assume that the compounding is being done monthly. She will be able to save $ in 5 years. (Round to the nearest cent as needed.) Enter your answer in the answer box and then click Check Answer. All narts showing teljavascript:doExercise(7): Clear All Check Answer answers to questions asked by student like you 99 a