Question

Hi Can you assist with below and show all the work?

16.   Calculating Monthly Mortgage Payments: Based on Exhibit 7-7, what would be the monthly mortgage payments for each of the following situations?

a.         A $100,000, 15-year loan at 7.5% APR compounded semi-annually
b.         A $200,000, 25-year loan at 9% APR compounded semi-annually
c.         A $165,000, 20-year loan at 10% APR compounded semi-annually

What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?

Answer 1

А 1 amount time 3 period 4 rate 5 rate pmt 100000 15 years 30 semiannually 7.50% APR 3.75% semiannually $5,608.76 9 amount 200000 10 time 25 years 11 period 50 semiannually 12 rate 9.00% APR 13 rate 4.50% semiannually 14 pmt $10,120.43 16 amount 17 time 18 period 19 rate 20 rate pmt 165000 20 years 40 semiannually 10.00% APR 5.00% semiannually $9,615.90 23 relation between lenghth of loan and monthly payment 24 as the lenth of theloan is inceased the monthly payment value decreased and vice versa. It is 25 because in lenthy period, the value of pricipal is less whereas in small period, the value of 26 pricipal is greater. 27 higher the mortgage rate, higher will be the emi, on the other hand lower mortgage rate 28 will result in lower emi value.

100000 15 1 amount 2 time 3 period 4 rate 5 rate 6 pmt =+B2*2 0.075 =+B4/2 =PMT(B5,B3,-B1,,0) years semiannually APR semiannually 200000 9 amount 10 time 11 period 12 rate 13 rate 14 pmt =+B10*2 0.09 =+B12/2 =PMT(B13,B11,-B9,,0) years semiannually APR semiannually 15 165000 16 amount 17 time 18 period 19 rate 20 rate 21 pmt =+B17*2 0.1 =+B19/2 =PMT(B20, B18,-B16,,0) years semiannually APR semiannually