Log in
Finance
1
answer
0
watching
96
views

Answers are 324 and 690. Not sure how to arrive at answers.

C. You borrow $50,000 5 year loan to make renovations to a house. The interest rate on this loan is 8% per year. The loan calls for equal monthly payments.

What is the monthly payment on this loan?

When you make the third payment, how much of the payment is interest?

How much is principal?

Watch
1
answer
0
watching
96
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

A. You've just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $95,000 per year for he next two years, or you can have $70,000 per year for the next two years, along with a $45,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?

B. Consider a firm with a contract to sell an asset for $165,000 four years from now. The asset costs $94,000 to produce today. Given a relevant discount rate on this asset of 13 percent per year, will the firm make a profit on this asset?

C. You borrow $50,000 5 year loan to make renovations to a house. The interest rate on this loan is 8% per year. The loan calls for equal monthly payments.

C. 1. What is the monthly payment on this loan?

C. 2. When you make the third payment, how much of the payment is interest?

C. 3. How much is principal?

Suppose you borrow $220,000 to purchase a home. The loan will be repaid over the course of 30 years with equal monthly payments. The annual interest rate on the loan is 4.2% compounded monthly, giving monthly payments of $1,075.84.

A.) How much interest is due on the first payment? How much interest is due on the second payment?

B.) What will the unpaid loan balance be after 10 years of payments?

C.) If you can afford monthly payments of $1,400, then how much could you have borrowed under the same loan conditons (interest rate and number of payments)?

Mortgage payment. You borrow $350,000 for your home at a 4.5% APR rate, where you will make equal monthly payments over 30 years to payoff the loan.

-How much would your monthly payment be?

-After 72 months of making payments, what is the remaining balance on your mortgage loan?

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in