Suppose you decide to borrow $180,000 for the house and you think you can pay $1,000...
Suppose you decide to borrow $180,000 for the house and you think you can pay $1,000 at the end of every month. The bank charges 3% APR. Approximately, how long should your mortgage be (in years)? Briefly show your calculations.
Homework Answers
Ans 20 years
| P = | Regular Payments |
| PV = | Loan Amount |
| r = | rate of interest |
| n = | no of periods |
| P = | r (PV) |
| 1 - (1 + r )-n | |
| 1000 = | (3%/12)*180000 |
| 1 - (1 / (1 + 3%/12)^n)) | |
| 1000 = | 450 |
| 1 - (1 / (1 + 3%/12)^n)) | |
| n = | 239 months |
| or | |
| n = | 20 years |
Add Answer to:
Suppose you decide to borrow $180,000 for the house and you
think you can pay $1,000...
Suppose the house costs $200,000. You need to borrow $180,000 from the bank that you will...
Suppose the house costs $200,000. You need to borrow $180,000 from the bank that you will pay over 30 years. Assume the bank charges 3% APR on your mortgage and payments are made at the end of each month. Calculate your monthly mortgage payment. Briefly show your calculations.
You need $300,000 to buy a house. You decide to borrow money from the bank to...
You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that the bank charges a fixed annual interest rate of 4.50 percent and the term of the loan is 30 years. If you are required to make an equal payment every year for 30 years to pay off the loan, what is the annual payment? (Note that banks typically require monthly mortgage payments. For this problem, however, lets assume for...
You just graduated from college and decide to start saving for a down payment to buy...
You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You estimate you will need $20,000 in 5 years for the down payment. (Note: a down payment is a deposit a home buyer must make in order to get a mortgage loan from a bank to buy the house.) 3a. Assume you can earn 6% interest (APR) on your savings, and you make a deposit in your savings...
You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You est...
You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You estimate you will need $20,000 in 5 years for the down payment. (Note: a down payment is a deposit a home buyer must make in order to get a mortgage loan from a bank to buy the house.) 1. Assume you can earn 6% interest (APR) on your savings, and you want to make a single deposit...
You want to buy a house that costs $500,000. You already have $100,000 and you decide...
You want to buy a house that costs $500,000. You already have $100,000 and you decide to borrow the rest from your local bank, which charges an APR of 6% (semi-annually compounded) and requires you to make equal semi-annual payments of $25,500. How long will it take you to pay back the loan?
When you borrow money to buy a house or a car, you pay off the loan...
When you borrow money to buy a house or a car, you pay off the loan in monthly payments, but the interest is always accruing on the outstanding balance. This makes the determination of your monthly payme on a loan more complicated than you might expect. If you borrow P dollars at a monthly interest rate ofras decimal) and wish to pay off the note in months, then your monthly payment M = M(Prt) in dollars can be calculated using...
Suppose you want to buy a house today that costs $479,312. The bank requires you to...
Suppose you want to buy a house today that costs $479,312. The bank requires you to make a 20% down payment, but you can borrow the rest. If you are charged 5.81% APR and the mortgage is for 30 years, what is your monthly payment?
Suppose you want to buy a house today that costs $400,035. The bank requires you to...
Suppose you want to buy a house today that costs $400,035. The bank requires you to make a 20% down payment, but you can borrow the rest. If you are charged 5.01% APR and the mortgage is for 30 years, what is your monthly payment?
You want to buy a house that costs $1,609,009, but all you can afford to pay...
You want to buy a house that costs $1,609,009, but all you can afford to pay on a weekly mortgage for the house is $2,509.86 per week over 13 years. The bank quoted you are mortgage rate of 2.12%. How much can you actually afford to borrow?
On August 1, you borrow $180,000 to buy a house. The mortgage rate is 7.0 percent....
On August 1, you borrow $180,000 to buy a house. The mortgage rate is 7.0 percent. The loan is to be repaid in equal monthly payments over 15 years. The first payment is due on September 1. How much of the tenth payment applies to the principle balance? (Assume that each month is equal to 1/12 of a year.) Group of answer choices $543.22 $566.24 $589.28 $598.41 $615.32
When you borrow money to buy a house or a car, you pay off the loan in monthly payments, but the interest is always accruing on the outstanding balance. This makes the determination of your monthly payme on a loan more complicated than you might expect. If you borrow P dollars at a monthly interest rate ofras decimal) and wish to pay off the note in months, then your monthly payment M = M(Prt) in dollars can be calculated using...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago