Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a mortgage with an amortization of 25 years and a 7-year term. Current interest rates for a 7-year term are 6.55% compounded semi-annually not in advance. What the maximum conventional mortgage amount Celine would be able to acquire? a) $215, 498.80 b) $467,590.16 c) $935, 413.12 d) $935,760.22please give me the answer with explaination and with right calculations

Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a mortgage with an amortization of 25 years and a 7-year term. Current interest rates for a 7-year term are 6.55% compounded semi-annually not in advance. What the maximum conventional mortgage amount Celine would be able to acquire? a) $215, 498.80 b) $467,590.16 c) $935, 413.12 d) $935,760.22please give me the answer with explaination and with right calculations

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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If Clare takes out a mortgage for 22 years at an interest rate of 3% and her monthly repayments are $984, what is the principal loan amount? Round your answer to the nearest dollar.Do NOT round until you have calculated the final answer.
Maria takes out a 30-year mortgage for $154,886 at an annual interest rate of 5.7%. How much does she still owe when there is 1 year left on the loan? Round your answer to the nearest dollar.
Joan Tanaka borrows $80,000 at 14 percent interest toward the purchase of a vacation home.Her mortgage is for 25 years. a. How much will her annual payments be? (home payments are usually on a monthly basis, but we shall do our analysis on an annual basis for ease of computation.) b. How much interest will she pay over the life of the loan?
7. Joan Tanaka borrows $80,000 at 14 percent interest toward the purchase of a vacation home. Her mortgage is for 25 years. a. How much will her annual payments be? (home payments are usually on a monthly basis, but we shall do our analysis on an annual basis for ease of computation.) b. How much interest will she pay over the life of the loan?
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
Problem: Justin and Hayley are interested in a fixed-rate mortgage for $450,000. They are undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 3.5% for the 15-year mortgage, and 3.85% for the 30-year mortgage. (a) What are the monthly principal and interest payments for EACH loan? Show your work. (b) What is the total amount of interest paid on EACH loan? Show your work. (c) Overall, how much more interest is paid by choosing the 30-year mortgage? Show your work.
Sandra gets a $250,000, 30 year mortgage with annual payments of 4.0% rate. What is the balance of the loan after 20 years? Choose the closest. a) $117,264 b) $83,250 c) $14,458 d) $196,482
Problem: Justin and Hayley are interested in a fixed-rate mortgage for $450,000. They are undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 3.5% for the 15-year mortgage, and 3.85% 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? S
Ann obtains a 30 year Fixed Rate, Constant Payment Mortgage with monthly payments for $4,500,000 at 4.38%. Her monthly payment is $20,000. What is the balloon payment for this mortgage after 360 payments are made? (e.g. if you get $50,66666, write 50.67).
Aziza is taking out a $1475 mortgage with a 30-year, fixed rate, fully amortizing loan and with 7.0% interest. What will be Aziza's monthly payments? Round your answer to the nearest cent (e.g. if your answer is $1,000.567, enter 1000.57),
(a) What is Diane's current monthly mortgage payment? $ (b) What is Diane's current outstanding balance? $ (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 5% per year compounded monthly, what will be her monthly mortgage payment? Use the rounded outstanding balance. (d) How much less would Diane's monthly mortgage payment be if she refinances? Use the rounded values from parts (a)-(c). %24 %24
Laura and Martin obtain a 30 year, 180,000 conventional mortgage at 10.0% on a house selling for 210,000. Their monthly mortgage payment, including principle and interest, is 1566.00. Determine the total amount they will pay for the house. How much of the cost will be in interest? How much of the first payment on the mortgage is applied to the principal?

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