Please show your work how you calculate them. so I can understand how you did th
ID: 2749856 • Letter: P
Question
Please show your work how you calculate them. so I can understand how you did them
Thanks
Q. 1
Part 1
For a $400,000 mortgage at 6% annually, accrued monthly, fully amortized
a. What is the monthly payment____________ and what would be the total interest if paid in 15 years? _______________
b. What is the monthly payment____________ and what would be the total interest if paid in 30 years? _______________
If I have a mortgage of $300,000 payable in 360 payments at 5.25% APR
What is my monthly payment? _______________
What is my balance after 2 years? _______________
What would my payment be if I had a balloon payment of $100,000? _______________
If I can afford $1400 per month, and loans were available at 3.25% for 30years
What amount of loan would be available to me? _______________
What is my balance in 5 years? _______________
What if I could increase my monthly payment to $1800, what amount could I have? _______________
How long will it take to pay off my $425,000 mortgage @4.5%
If I pay $2500 per month? _______________
If I pay $3000 per month? _______________
For a loan of $385,000, amortized for 25 years payable at $1500/mo
What is the interest rate? _______________
What is the balance after 3 years of paying? _______________
Part 2
I have a loan for $339,000 amortized for 20 years payable at $1500/mo at 4.15%
What is the balloon payment at the end of the term? _______________
What would my payment be if it were fully amortized? _______________
What would the monthly payment be on an interest only loan of $750,000
@7.61% with a term of 5 years? _______________
@6.33% with a term of 3 years? _______________
If I made no payments, what amount would the principle be after one year @6.25% _______________
Paying $1500/mo for 15 years @ 4.85 with a balloon payment of $25,000 will get you what original loan amount? _______________, what amount if no balloon payment? ________________
You could rent an apartment for $850/mo, but decided to buy instead and will live there for 4 years while attending VIU
a. What size mortgage would this same rent pay for, 0% down, using a 30 year amortization @4.5% with a 4 year term? ___________
b. With a 5% down payment, what would your maximum purchase price be? _______________
c. What is the loan balance in 4 years? _______________
d. If property values on purchase in #b above, rose 4.6% per year, what is the value in 4 years? _______________
e. How much equity did you gain? _______________
f. Assuming you paid 5% down payment, had $15,000 in selling/buying costs, what is your % return on equity invested? _______________
Explanation / Answer
We can Use the PMT function in excel to get the Monthly Payment.
(a) Monthly Payment is $3375.43 for 180 Months and Total Interest would be (3375.43*180)-4,00,000= $2,07,577
(b) If Paid within 30 Years the Monthly Payment would be $2398.20 and the Interest would be $4,63,352.
IF Mortgage of $3.00.000 @5.25% with 360 Payments the Monthly payment would be
If you can afford $1400 Installement then the Mortgage amount will be $321500.
The Balance after 5 years will be $287,121.22
If you Increase your Monthly Payment to $1800 the Mortgage would be $4,13,500
$1656.61
The Balance after 2 years will be $291312.18
If Baloon Payment of $1,00,000 is done then the Monthly Payment would be $1104.41.
If YOu Pay $2500 then it would be paid by 22.6 Years.
If you pay $3000 then it would be paid by 17 years