Please do not give solution in image format ? Monthly Payment on a $1,000 loanAnnual Interest Rate4%5%6%8%10%12%Number of Years for the Loan1020$10.12 $6.0610.616.6011.107.1612.138.369.6511.013$29.53$22.5829.9723.0330.4223.4931.3424.4132.2725.3613.2233.21 26.33 14.35PrintDone30$4.775.376.007.348.7810.29Xandedan. 1)Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid.Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) theamount saved on interest over the life of the loan. Assume the mortgage is for 10 years and use the amortization table tofind the monthly payments.1)Increase inAmount of Loan Interest Rate Down PaymentDown payment$22,000$253,0005%$62,000Click the icon to view a table of monthly payments on a $1,000 loan.a. The monthly payment will be reduced by $ 233.42 when the down payment is increased by $22,000.(Round to the nearest cent as needed.)b. Increasing the down payment by $22,000 saved $on interest over the life of the loan.(Round to the nearest cent as needed.)

Down payment is the initial amount of out of pocket cash payment made for the loan , down payment…

of a mortgage reduces both the size of the monthly payments and the Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount s amount saved on interest over the life of the loan. Assume the mortgage is for 10 years and use the find the monthly payments. Increase in Down Payment Down payment $62,000 $22,000 Click the icon to view a table of monthly payments on a $1,000 loan. Amount of Loan Interest Rate $253,000 5% a. The monthly payment will be reduced by $ 233.42 when the down payment is increased by $22,0 (Round to the nearest cent as needed.) b. Increasing the down payment by $22,000 saved $on interest over the life of the loan. (Round to the nearest cent as needed.)

of a mortgage reduces both the size of the monthly payments and the Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount s amount saved on interest over the life of the loan. Assume the mortgage is for 10 years and use the find the monthly payments. Increase in Down Payment Down payment $62,000 $22,000 Click the icon to view a table of monthly payments on a $1,000 loan. Amount of Loan Interest Rate $253,000 5% a. The monthly payment will be reduced by $ 233.42 when the down payment is increased by $22,0 (Round to the nearest cent as needed.) b. Increasing the down payment by $22,000 saved $on interest over the life of the loan. (Round to the nearest cent as needed.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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不 Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate the reduction in the monthly payment by increasing the down payment by the amount specified, and the amount saved on interest over the life of the loan. Assume the mortgage is for 20 years and use the table to find the monthly payments Click the icon to view the table for the monthly payment Amount of Loan $169,000 Interest Rate OA $77.20, $18.528.00 OB. 557.28, $13,747.20 OC. $58.72, $14,092.80 OD. $66.88, $16.051.20 8% Down Payment $33,000 Increase in Down Payment $8,000 Table Anal Interest Rate 5% 6% Monthly payments on a $1,000 loan. Number of Years for the Loan 8% 10% 126 10 20 30 $29.53 $22.58 $10.12 $6.06 $4.77 29.97 23.03 1061 6.60 5.37 30.42 23.49 11.10 7.16 6.00 3134 2441 12.13 X36 734 32.27 25.36 13.22 9.65 8.78 33.21 26.33 14.35 1101 10.29 Print Done X
Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate the reduction in the monthly payment by increasing the down payment by the amount specified, and the amount saved on interest over the life of the loan. Assume the mortgage is for 20 years and use the table to find the monthly payments. Monthly payments on a $1,000 loan. Number of Years for the Loan Annual Interest Rate 3 10 20 30 4% $29.53 $22.58 $10.12 $6.06 $4.77 5% 29.97 23.03 10.61 6% 30.42 23.49 6.60 5.37 11.10 7.16 6.00 8% 31.34 24.41 12.13 8.36 7.34 10% 32.27 25.36 13.22 9.65 8.78 12% 33.21 26.33 14.35 11.01 10.29 Amount Interest Down Increase in of Loan $243,000 Rate Payment Down Payment 5% $52,000 $23,000 $123.51, $29,642.40 $164.68, $39,523.20 $151.80, $36,432.00 $139.38, $33,451.20
Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) the amount saved on interest over the life of the loan. Assume the mortgage is for 30 years and use the amortization table to find the monthly payments. Increase in Amount of Loan Interest Rate Down Payment Down payment $237,000 10% $52,000 $23,000 Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payment will be reduced by $ when the down payment is increased by $23,000. (Round to the nearest cent as needed.) Enter your answer in the answer box and then click Check Answer. 1 part remaining Clear All Check Answer javascript:doExercise(5); Copyright © 2020 Pearson Education Inc. All rights reserved. | Ter 99+ a
Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) the amount saved on interest over the life of the loan. Assume the mortgage is for 20 years and use the amortization table to find the monthly payments.
Use the following amortization chart: Selling price of home Down payment $ 5,000 Rate of Monthly mortgage Principal (loan) $78,000 Payment per $1,000 $ 5.37 interest Years payment $ 83,000 5% 30 $418.86 Assume the interest rate rises to 6.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) (Do not round intermediate calculations. Round your final answer to the nearest cent.) Total cost of interest TABLE 15-1 Amortization table (mortgage principal and interest per $1.000) INTEREST Term In years 31% 5% 51% 6% 6% 7% 7% 8% 81% 9% 10% 10% 11% 10 9.89 10.61 10.86 11.11 11.36 11.62 1.88 12.14 12.40 12.67 12.94 13.22 13.50 13.78 12 8.52 9.25 951 976 10.02 10.29 10,56 10.83 11.11 11.39 11.67 11.06 12.25 12.54 15 7.15 7.91 8.18 8.44 8.72 8.99 9.28 9.56 9.85 10.15 10.45 10.75 11.06 1137 17 6.52 7.29 P.56 7.84 8.12 8.40 8.69 8.99 9.29 9.59 9.90 10.22 10.54 10.86 20 5.80 6.60 6.88 7.17 7.46 7.76 8.06 8.37 8,68 9.00 9.33 9.66 9.99 10.33 22 5.44 6.20 6.51 6.82 7.13…
Use the following amortization chart: Selling priceof home Downpayment Principal(loan) Rate of interest Years Payment per$1,000 Monthly mortgage payment $ 95,000 $ 6,000 $ 89,000 6% 30 $ 6.00 $ 534.00 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) (Do not round intermediate calculations. Round your final answer to the nearest cent.) Total Cost of Interest
Use the following amortization chart: Selling priceof home Downpayment Principal(loan) Rate of interest Years Payment per$1,000 Monthly mortgage payment $ 81,000 $ 4,000 $ 77,000 5.5% 30 $ 5.68 $ 437.36 Assume the interest rate rises to 7.0%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) (Do not round intermediate calculations. Round your final answer to the nearest cent.)
Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 79,000 $ 6,000 $ 73,000 6% 30 $ 5.9955 $ 437.67 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent. Total cost of interest: ????? The answer is NOT $110,753.57 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938…
Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 79,000 $ 6,000 $ 73,000 6% 30 $ 5.9955 $ 437.67 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent. Total cost of interest:???
Suppose a homeowner has an existing mortgage loan with these terms: Remaining balance of $150,000, interest rate of 8 percent, and remaining term of 10 years (monthly payments). This loan can be replaced by a loan at an interest rate of 6 percent, at a cost of 8 percent of the outstanding loan amount. Required: a. What is the net benefit of refinancing? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places. b. What is the NPV if the homeowner expects to be in the home for only five more years? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places. a. Net benefit of refinancing b. NPV $ + 6,552.77 1,819.91
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Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ ✓Answer is complete and correct. Time b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. 1 2 3 4 Loan Balance (S) 2,400.00 2,400.00 757.13 1,882.87 x 1,314.03 688 Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance (5) 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 10 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30