Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. as part of the purchase of a home on january 1, 20

As part of the purchase of a home on January 1, 2014, you negotiated a...

70.2K

Verified Solution

Question

Finance

As part of the purchase of a home on January 1, 2014, you negotiated a mortgage in the amount of $110 000. The amortization period for calculation of the level payments (principal and interest) was 25 years and the initial interest rate was 6% compounded semi-annually. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a) What was the initial monthly payment? Monthly payment $

b) During 20142018 inclusive (and January 1, 2019) all monthly mortgage payments were made as they became due. What was the balance of the loan owing just after the payment made January 1, 2019? Balance after 5 years $

c) At January 1, 2019 (just after the payment then due) the loan was renegotiated at 8% compounded semi-annually (with the end date of the amortization period unchanged). What was the new monthly payment? New monthly payment $

d) All payments, as above, have been faithfully made. How much of the September 1, 2019, payment will be principal and how much represents interest? PSeptember $ ISeptember $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

The annual interest rate on a credit card is 18% with interest compounded monthly. If a...

Economics
1.2K views

State the theories of: 11. Smith, 12. Ricardo, 13. Heckscher-Olin, 14. Porter,

Accounting
1.2K views

Please read through this unit's list of terms and concepts provided in the Key Terms module...

Accounting
1.2K views

1. Cutter Enterprises purchased equipment for $72,000 on January 1, 2018. The equipment is expected to...

Biology
1.2K views

Choose the correct answer are among the most commonly adapted forms of writing O Plays...

Basic Math
1.2K views

Let f(x) = 5x + 3 and g(x)= 2x + 2x. Find (f + g)(x).(f+g)(x)...

Calculus
1.2K views

Solve using the elimination method.0.2x-0.3y = -0.40.3x-0.2y = -0.6(Hint: Since each coefficient has one decimal...

Calculus
1.2K views

Find the rational number representation of the repeating decimal 0 945

Accounting
1.2K views

At the end of their fiscal year 20X2, Exxon Specialities had the following balances listed...

Accounting
1.2K views

Transfer Pricing Fillmore Industries is a vertically integrated firm with several divisions that operate as...

Accounting
1.2K views

Is it true that many professional forecasters feel the federal Social Security system will eventually...

Finance
1.2K views

The risk-free rate is 2%, and the market risk premium is 8%. What is the...