George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500. He takes a 30 year fixed rate mortgage with 5.46% interest rate and no fees.Assuming George repays the mortgage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if youget 5.6499%, write 5.65).

Annualized rate of return refers to the return that is being earned by the investor over the…

George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500. He takes a 30 year fixed rate mortgage Assuming George repays the mortgage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65).

George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500. He takes a 30 year fixed rate mortgage Assuming George repays the mortgage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65).

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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George is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4, 500. He takes a 30 year fixed rate mortgage with 2. 13% interest rate and no fees. Assuming George repays the mortoage after 5 years, what is his annualized IRR on the loan? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65).
If Bobby takes out a mortgage for 30 years at an interest rate of 4% and his monthly repayments are $835.48, what is the loan principal (that is, the balance of the loan at drawdown)? Give your answer to the nearest ten dollars. Do not include commas or the dollar sign in your answer.
You have decided to buy a house. You can get a mortgage rate of 5.15 percent, and you want your payments to be $1,450 or less. How much can you borrow on a 30-year fixed-rate mortgage? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Mortgage amount
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with a mortgage amount of $4,500 and monthly payments. She takes the mortgage with 7.38% interest rate that requires Ann to pay 3 points upfront. Assuming Ann makes payments for 30 years, what is Ann's annualized IRR? Write your answer as a percent rounded to two decimal points without (e.g. if you get 5.6499%, write 5.65). the % sign
You plan to purchase a $350,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.50 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the mortgage. How much total interest is paid on this mortgage? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.20 percent. You will make a down payment of 15 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Month 1 2 3 179 180 Construct the amortization schedule for the mortgage? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Req 82 Total Interest Amortization Schedule for the 15-Year Mortgage Interest Cumulative Principal Principal 272,000.00 270,999.26 Cumulative Interest Ending Balance
Phil Pittman is interested in a fixed-rate mortgage for $300,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) A.) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage $= 30-year mortgage $= B.) What is the total amount of interest (in $) paid on each loan? 15-year mortgage $= 30-year mortgage= C.) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage?
Suppose that you purchased a house with a $140,000 mortgage (30-year fixed at 6% with a payment of $839.37) five years ago. The loan balance is currently $130,276 and you can refinance that balance at 5% with a new 30-year fixed rate mortgage. You anticipate being in the house for another six years, at which point the balance on your current mortgage would be $114,032. If you refinanced at the terms above, what would be the difference in the loan balances? O $1,329 O $1,871 O $2,471 O $3,132 O $3,860 2
Suppose you take a $268,188 30-year fixed-rate mortgage at 5.86%, 4 discount points, monthly payments. At the end of year 3 you inherit $15,193 from your now-favorite aunt. You decide to apply this $15,193 to the principal balance of your loan. What is your net interest savings over the life of the loan, assuming the loan is held to its maturity?
Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage $ 30-year mortgage (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage 30-year mortgage (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $ Need Help? Read It
Phil Pittman is interested in a fixed-rate mortgage for $100,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 5.5% for the 15-year mortgage and 6.5% for the 30-year mortgage. a. What are the monthly principal and interest payments for each loan? b. What is the total amount of interest paid on each loan? c. Overall, how much more interest is paid by choosing the 30-year mortgage?
Phil Pittman is interested in a fixed-rate mortgage for $400,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage $ 3,823 30-year mortgage $ 3,076 X X (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage $ 288,140 X X 30-year mortgage $ 707,360 (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $ 419,220 X

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