Suppose you take out a home mortgage for $160,000 at a monthly interest rate of 0.6%. If you make payments of $1200/month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer.Graph the sequence of loan balances. Choose the correct graph below.O A.160,000its125monthsloan balance150QQThe loan balance will be zero after 269 months.(Round up to the nearest month.)O B.loan balance160,000125 150monthsQOloan balance160,000260 290monthsQO D.160,000itloan balance260 ¹290monthsⒸQ

Loans are defined as a type of credit vehicle through which a sum of money is lent to some other…

Answered: Suppose you take out a home mortgage…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Find the amount of interest and the maturity value of the following loan. Use the formula MV =P+I to find the maturity value. Round your answers to the nearest cent. Principal Rate (%) Time Interest Maturity Value $100,000 7 4 months
Find the amount of interest and the maturity value of the following loan. Use the formula MV = P+ I to find the maturity value. Round your answers to the nearest cent. Principal Rate (%) Time Interest Maturity Value $90,000 7 4 years
Consider a loan repayment plan described by the following initial value problem, where the amount borrowed is B(0) = $40,000, the monthly payments are $600, and B(t) is the unpaid balance of the loan. Use the initial value problem to answer parts a through c. B' (+) =0.03B - 600, B(0) = 40,000 a) Find the solution of the initial value problem and explain why B is an increasing solution. B(t) = Why is B an increasing function? O A. The function is increasing because it is an exponential function with a positive coefficient and a negative exponent. O B. The function is increasing because it is an exponential function with a positive coefficient and a positive exponent. O C. The function is increasing because it is an exponential function with a positive exponent. O D. The function is increasing because it is an exponential function with a positive coefficient. b) What is the most that you can borrow under the terms of this loan without going further into debt each month? The…
I need the excel function typed out? Example =RATE???? G. Find the interest rate (APR) on a 27-year mortgage with a initial loan amount of $358,000, if the monthly payment is $2229.45 Let's use references for input values; and be sure to annualize the rate! INPUTS: OUTPUT: Period 27 Rate is APR Payment 2229.45 Loan amount 358000
Based on Exhibit 9.9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round tin value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a $120,000, 15-year loan at 5 percent b. $86,000, 30-year loan at 4.5 percent. c$105,000, 20-year loan at 4 percent d-1. Longer mortgage terms mean a d-2 For increase in mortgage rate Monthly Mortgage Payment monthly payment monthly payment is required
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Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month’s payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $
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1. Find the amount (in $) of interest and the maturity value of the loans. Use the formula MV = P + I to find the maturity value. (Round your answers to two decimal places.) Principal Rate (%) Time Interest Maturity Value $145,000 14 1 2 5 months $ $ 2.Use MV = P(1 + RT) to find the maturity value (in $) of the loan. (Round your answer to two decimal places.) Principal Rate (%) Time Maturity Value $5,600 7.4 14 months $
Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a. $61,000, 15-year loan at 7.50 percent. b. $151,000, 30-year loan at 8.00 percent. c. $88,000, 20-year loan at 6.50 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate Monthly Mortgage Payment monthly payment. monthly payment is required.

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