You borrowed $300,000 for your new house with a 15-year fixed-rate loan at an annual interest rate of 4.5%. The first mortgage payment is due exactly one month after you signed the contract. For the first month, the interest portion from your mortgage payment is _____________.

You borrowed $300,000 for your new house with a 15-year fixed-rate loan at an annual interest rate of 4.5%. The first mortgage payment is due exactly one month after you signed the contract. For the first month, the interest portion from your mortgage payment is _____________.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

See similar textbooks

Related questions

Q: Juliet has a 10-year mortgage of $350,000 with an interest rate of 4.5% APR, compounded…

A: Given: Given:

Q: John Doe has just been offered a home loan towards purchase of house that is being sold for…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: Fidelio has purchased a condominium for $39,750, of which 80% is to be financed by a mortgage.…

A: given, price = $39,750 loan = 80% p= $39,750 x 0.8 = 31800 pmt = $395.80 rate = 14.3%

Q: A $300,000 mortgage at 5.8% compounded semiannually requires monthly payments that were calculated…

A: Loan amount (L) = $300000 Interest rate = 5.8% semiannually compounded n = 25 years = 300 payments…

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

A: Using excel pmt function

Q: Georgia applied for a home mortgage of 75,000 to finance the purchase of a new home for 30 years.…

A: Loan amount (PV) = 75,000 Annual interest rate (r) = 14% Number of annual payment (n) = 30

Q: Assume that you will have a 10-year, $14,000 loan to repay when you graduate from college next…

A: Given, Loan amount = $14,000 Annual payment = $2,377 Interest expense = 11%

Q: You entered into a mortgage agreement to borrow $100,000 at an interest rate of 3% and to be…

A: Given: Amount borrowed =$100000Interest rate =3%Term of loan =30 years

Q: Your car loan requires payments of $1,000 per month over the next18 months and payments of $2,000…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: You buy a house for $1,200,000 using a 30-year mortgage. The annual interest rate is 3%. Payments…

A: Using excel PV function

Q: John House has taken a $150,000 mortgage on his house at an interest rate of 6% per year. If the…

A: The annuity refers to the series of cash payments and receipts that finished over a period. The…

Q: riya and Ronnie borrow $500,000 from the EastSide bank, to be paid back through monthly repayments…

A: Hi, Thanks for the Question. Since you asked multiple sub parts question, we can provide solutions…

Q: Mary Jones recently obtained an equipment loan from a local bank. Theloan is for $15,000 with a…

A: Given information: Loan amount is $15,000 Nominal interest rate is 11% Loan repayment in 1 year

Q: A man borrowed $300,000 from a finance company that charges interest at 16% compounded…

A: Amount borrowed is $300,000. Interest rate 16%. Term of loan payment 12.

Q: Charmaine has just purchased an apartment at a price of $10 million. She made a down- payment of $4…

A: Loan amount (L) = $6 million n = 15 years = 180 months r = 3% per annum = 0.25% per month Let M =…

Q: Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a…

Q: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: If Marc obtained a business loan of $225,000 at 4.77% compounded semi-annually, how much should he…

A: Solution:- When a loan is taken, it is either paid back in lump sum mode or installments. In…

Q: You purchase a cottage for $175,000. You obtain a 30-year, fixed rate mortgage loan at 12.5% after…

A: Cost of the cottage is $175000 Down payment = 30%*$175000 = $52500 Loan = Cost – down payment =…

Q: Uncle Roger borrows $120,000 to buy a house on mortgage. The nominal annual interest rate on the…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: You buy a house for $1,200,000 using a 30-year mortgage. The annual interest rate is 3%. Payments…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: You obtain a loan of 1.5M at the rate of 18% compounded annually in order to build a house. The…

A: Here, Loan Amount is 1,500,000 Interest Rate is 18% compounded Annually. Time Period is 1 year…

Q: Juwen obtained a 25-year residential mortgage at 4.75% compounded semiannually for a 5-year term. If…

A: Loan amount (L) = $381500 n = 25 years = 300 payments Interest rate = 4.75% semiannually compounded…

Q: Nelson took out a 25-year home loan of $500,000. He made equal month-end repayments at the interest…

A: A loan is a borrowing that is taken by an individual or a corporation from a bank or financial…

Q: Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The…

A: A = P1+r100n Where A = Amount P = Principal r = Rate of interest n = Number of periods

Q: A young couple has made monthly payments (of equal size, rounded to the nearest cent) over the past…

A: Earlier Agreement: Borrowed amount :- $64000 Interest rate is 5% compounded semi annually Time…

Q: The Taylors have purchased a $150,000 house. They made an initial down payment of $20,000 and…

A: Monthly payment for the loan can be calculated using the formula of present value of annuity

Q: Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 7.9%. The…

A: To calculate monthly payment on mortgage, present value of annuity concept is used. The mortgage…

Q: A couple borrows $300,000 at an APR of 4.8% compounded monthly on a 30-year mortgage with monthly…

A: Honor code Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: You are getting a mortgage. Your home is worth $237,324, and you will make a $63,651 down payment.…

A: Cost of home= $ 237324 Down payment done= $ 63651 Loan= $ 237324- $ 63651 =$ 173673

Q: Assume that you will have a 10-year, $20,000 loan to repay when you graduate from college next…

A: Note: As per the Policy, We’ll answer the first question since the exact one wasn’t specified.…

Q: You pay $993 at the beginning of each month for rent. Instead, you are going to purchase a house.…

A: The money he should borrow can be ascertained by computing the present value. Assuming that the…

Q: Your brother has just taken out a loan for $75,000. The stated (simple) interest rate on this loan…

A: Add-on instalment loan is the method of loan repayment with interest. Under this method total amount…

Q: John Mayer Inc. purchases a house for $500,000. On January 1, He makes a 20 percent down-payment and…

Q: You borrow $280,000 to buy a house. The mortgage rate is 4.5% and the loan period is 25 years.…

A: The series of payments discussed here is a form of annuity wherein an equal amount is paid every…

Q: A student takes out a short-term loan to pay for tuition, books, and supplies. If the simple…

A: Total repayment = Principa amount + Interest on loan

Q: Stan Moneymaker has a bank loan for $10,000 to pay for his new truck. Thisloan is to be repaid in…

A: Each time a person makes a payment on a loan he pays some interest along with a part of the…

Q: The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank…

A: Monthly Installment: installment of the loan is to pay in monthly installments; to split a debt or…

Q: A certain college graduate borrows 7406 dollars to buy a car. The lender charges interest at an…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: Dominic takes out a 30-year mortgage of 200000 dollars at the interest of 5.76 percent compounded…

A: Loan amount $2,00,000.00 Periodic interest 0.48% nper (no. of compounding period) 360…

Q: You will be paying off a mortgage of $250,000 over the next 25 years. You have signed a loan…

A: A loan amortization table is a schedule of payments to pay back the loan in installments. It…

Q: You have just taken out a mortgage of $50,000 for 30 years, with monthly payments at 6% interest.…

A: Time value tells that money received today has more value than that of receiving the exact value…

Q: You get a 20-year $600,000 mortgage loan at 7.5% interest. Use your financial calculator to…

A: We need to use financial calculator as instructed in above question for monthly payment and…

Concept explainers

Calculating the Return On A Loan

Question

You borrowed $300,000 for your new house with a 15-year fixed-rate loan at an annual interest rate of 4.5%. The first mortgage payment is due exactly one month after you signed the contract.

For the first month, the interest portion from your mortgage payment is _____________.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 00

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You entered into a 2-year mortgage for $500,000. The mortgage has a 9 percent interest rate compounded semiannually. Loan repayment is made at the end of every three months. What will be the remaining balance on the mortgage after three years?
A borrower has taken out a 30-year mortgage for $104,000 at an annual rate of 12%. a. Use the table to find the monthly payment for this mortgage. b. Construct the first three lines of an amortization schedule for this mortgage. c. Assume that the borrower has decided to pay an extra $200 per month to pay off the mortga more quickly. Find the first three lines of your payment schedule under this assumption. Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payments for this mortgage are $ (Type an integer or a decimal.) Enter your answer in the answer box and then click Check Answer. 6 parts remainino Olear All Cherk Answe javascript:doExercise(3): Copyright © 2020 Pearson Education Inc. All rights reserved. | 99 a 立

You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal end-of-month payments of $90. What is the effective annual interest rate on the loan?
A homeowner just obtained a 30-year (360-month) mortgage for $120,000. The mortgage has a fixed nominal annual rate of 8%, with monthly payments. What percentage of the total payments made during the first 3 months will go toward payment of interest?
On June 1, you borrowed $220,000 to buy a house. The mortgage rate is 8.25 percent. The loan is to be repald In equal monthly payments over 15 years. The first payment is due on July 1. How much of the second payment applies to the principal balance? (Assume that each month is equal to 1/12 of a year.)
Zach Taylor is settling a $20,000 loan due today by making 6 equal annual payments of $4,727.53. Determine the interest rate on this loan, if the payments begin one year after the loan is signed.
A couple borrows 275000.00 for a mortgage that requires fixed monthly payments over 25 consecutive years. The first monthly payment is due in one month. If the interest rate on the mortgage is 4.00%, which of the following comes closest to the monthly payment?
The Johnson family is interested in buying a home. The family is applying for a $200,000 30-year mortgage. Under the terms of the mortgage, they will receive $200,000 today to help purchase their home. The loan will be fully amortized over the next 30 years. Current mortgage rates are 7.5 percent. Interest is compounded monthly and all payments are due at the end of the month. What portion of the mortgage payments during the first year will go toward interest? 89% 100% 75% 65% 95%
You purchase a home and take on a $600k mortgage. The amortization period of the loan is 20 years, and the first term is a fixed rate for 4 years during which time you are required to make semi-monthly (each half-month) payments at 8% APR compounded quarterly. On the first-year anniversary you make an additional $50,000 payment. Find the balance owing immediately after the second anniversary of your payments. The balance is within $200 of which of the following? 518,025 518,425 518,825 519,225 None of the above
A couple borrows $300,000 at an APR of 4.8% compounded monthly on a 30-year mortgage with monthly payments of $1,574. (a) How much of the first payment goes to interest? (b) Find the total interest paid over the life of the loan. (c) After making their 70th payment, they refinance the loan at an APR of 3.6% compounded monthly for 15 years. The refinanced amount includes the unpaid balance from the original loan plus a refinance charge of $2,000. Find the new monthly payment. (d) Find the amount saved by refinancing.
Suppose you purchase a home and obtain a 30-year fixed-rate loan of $145,000 at an annual interest rate of 7.5%. Of the second month's mortgage payment, how much is applied to the principal?
Consider a home mortgage of $225,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.