In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 atan annual interest rate of 6%. After 10 years, they refinanced the unpaid balance of$142,125 at an annual rate of 4%. Use the table to find the monthly payments on the originalloan; the monthly payments on the new loan; and the total amount saved on interest byrefinancing.Click the icon to view a table of monthly payments on a $1,000 loan.The monthly payments on the original loan are $(Type an integer or a decimal.)Enter your answer in the answer box and then click Check Answer.2 partsremainingClear AllCheck Answrerjavascript:doExercise(6);10:45 PM10/26/2020120 Monthly Payment on a $1,000 loanNumber of Years for the LoanAnnual Interest Rate3410204%$29.53$22.58$10.12$6.06$4.775%29.9723.0310.616.605.376%30.4223.4911.107.166.008%31.3424.4112.138.367.3410%32.2725.3613.229.658.7812%33.2126.3314.3511.0110.29PrintDone2 partsCheck AnswerClear Allremaininajavascript:doExercise(6);10:45 PM10/26/20202030

A mortgage refers to a loan availed against the purchase of real estate which includes a house,…

In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an annual interest rate of 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an annual rate of 4%. Use the table to find the monthly payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by refinancing.

In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an annual interest rate of 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an annual rate of 4%. Use the table to find the monthly payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by refinancing.

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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A family buys a home by taking out a 15-year fixed-rate mortgage of $240,000 at 4.3% interest. What is their monthly payment? Round their answer up to the next whole dollar. How much will they pay over the course of 15 years? With this payment, much interest will they pay over the life of the loan? Complete the first three lines of this amortization table, using the payment you found above. Round each entry in the table to the nearest cent. Payment Number Interest Payment Principal Payment Balance of Loan 1 2 3 Submit Question
A few years ago a couple purchased an office space by financing RA for n years, paying periodic installment of Rp with an interest of r% compounded bimonthly (every 2 months). They have made t payments and wish to know how much they owe on the mortgage at the end of t payments, which they are considering paying off with an inheritance they received. 1. Construct a mathematical model to illustrate the value owed on the loan after t payments. 2. Give an explicit formula for computing the current balance on the loan account after n periods. 3. If the couple signed the contract by financing R80000 for 10 years, paying periodic installments of R1880 with an interest of 18% compounded binmonthly. What is the current value on the mortgage after 6 months?
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