# Sophie received a 25 year loan of \$245,000 to purchase a house. The interest rate on...

Sophie received a 25 year loan of \$245,000 to purchase a house. The interest rate on the loan was 2.00% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3? Round to the nearest cent c. By how much will the amortization period shorten if Sophie makes an extra payment of \$30,000 at the end of year 3? years months

##### Add Answer of: Sophie received a 25 year loan of \$245,000 to purchase a house. The interest rate on...
Similar Homework Help Questions
• ### Cassandra received a 15 year loan of \$305,000 to purchase a house. The interest rate on...

Cassandra received a 15 year loan of \$305,000 to purchase a house. The interest rate on the loan was 4.20% compounded semi-annually. a. What is the size of the monthly loan payment? \$2,281.15 Round to the nearest cent b. What is the balance of the loan at the end of year 4? -4? O \$241,250.91 Round to the nearest cent C. By how much will the amortization period shorten if Cassandra makes extra payment of \$30,000 at the end of...

• ### Sophie received a \$32,750 loan from a bank that was charging interest at 4.50% compounded semi-annually....

Sophie received a \$32,750 loan from a bank that was charging interest at 4.50% compounded semi-annually. a. How much does she need to pay at the end of every 6 months to settle the loan in 4 years? Round to the nearest cent b. What was the amount of interest charged on the loan over the 4-year period? Round to the nearest cent

• ### A design studio received a loan of \$9,650 at 4.60% compounded semi-annually to purchase a camera....

A design studio received a loan of \$9,650 at 4.60% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? Round to the nearest cent c. What was the balance of the loan at end of...

• ### Question 1 of 4 Cameron purchased a house for \$450,000. He made a down payment of...

Question 1 of 4 Cameron purchased a house for \$450,000. He made a down payment of 30.00% of the value of the house and received a mortgage for the rest of the amount at 4.32% compounded semi-annually amortized over 25 years. The interest rate was fixed for a 6 year period. a. Calculate the monthly payment amount. \$0.00 Round to the nearest cent b. Calculate the principal balance at the end of the 6 year term. \$0.00 Round to the...

• ### Question 1 of 6 Lucy purchased a house for \$300,000. She made a down payment of...

Question 1 of 6 Lucy purchased a house for \$300,000. She made a down payment of 20.00% of the value of the house and received a mortgage for the rest of the amount at 4.52% compounded semi-annually amortized over 15 years. The interest rate was fixed for a 6 year period. a. Calculate the monthly payment amount. Round to the nearest cent b. Calculate the principal balance at the end of the 6 year term. Round to the nearest cent...

• ### QUESTION 9 (10 marks) You purchase a new house for \$825.000 and makea 25% down payment You arrnge mortgage for the...

QUESTION 9 (10 marks) You purchase a new house for \$825.000 and makea 25% down payment You arrnge mortgage for the balance with an amortization period of 25 years and an interest rate of 575 % compounded semi-annually a. Calculate the size of your monthly payment rounded up to the nearest cent. (4) b. How much interest will you pay in the fourth year your mortgage? (2) c. Find the size of your final payment (assuming no change in interest...

• ### Help ure.vretta.com Vretta BMAT text Question 2 of 4 James purchased a house for \$475,000. He...

Help ure.vretta.com Vretta BMAT text Question 2 of 4 James purchased a house for \$475,000. He made a down payment of 10.00% of the value of the house and received a mortgage for the rest of the amount at 4.329 compounded semi-annually amortized over 15 years. The interest rate was fixed for a 7 year period. 59 a. Calculate the monthly payment amount. rint \$0.00 Round to the nearest cent b. Calculate the principal balance at the end of the...

• ### 4 of 13 A loan of \$24,100 at 3.28% compounded semi-annually is to be repaid with...

4 of 13 A loan of \$24,100 at 3.28% compounded semi-annually is to be repaid with payments at the end of every 6 months. The loan was settled in 4 years. a. Calculate the size of the periodic payment. Round to the nearest cent h Caleulata tha tatalintanant naid a. Calculate the size of the periodic payment. Round to the nearest cent b. Calculate the total interest paid. Round to the nearest cent

• ### Lois received a 9-year subsidized student loan of \$35,000 at an annual interest rate of 5.875%....

Lois received a 9-year subsidized student loan of \$35,000 at an annual interest rate of 5.875%. Determine her monthly payment on the loan after she graduates in 3 years. (Round your answer to the nearest cent.) Lois received a 9-year subsidized student loan of \$35,000 at an annual interest rate of 5.875%. Determine her monthly payment on the loan after she graduates in 3 years. (Round your answer to the nearest cent.)

• ### Sarah secured a bank loan of \$190,000 for the purchase of a house. The mortgage is...

Sarah secured a bank loan of \$190,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house at that time? (Round your answer to the nearest cent.)

Free Homework App