End of Chapter 18 Extra Mortgage Problems and Answers

End of Chapter 18 Extra Mortgage Problems and Answers -...

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Extra Mortgage Problems and Answers For Chapter 18 1. What is the monthly mortgage payment for a $150,000 FRM at 9.25% for 15 years, 20 years, 25 years, 30 years, and 50 years? Mortgage Payments for 9.25% for $150,000 for: 15 years $1,543.79 20 years $1,373.80 25 years $1,284.57 30 years $1,234.01 50 years $1,167.90 Notice that the interest alone would be $1,156.25 so a 50 year loan is barely above the interest alone payment. 2. What is the monthly and annualized loan constant for a loan of $100,000 at 10.0% for 15 years, and 30 years? Hint: do not use annual payments for the annualized constant. Answer: Enter $1.00 for the PV in the calculator, 10%/12 for the monthly I, and 15 x12 or 30 x 12 for N then solve for the payment and you will get: for 15 years the monthly loan constant is .010746051 annualized to .128952614 for 30 years the monthly loan constant is .008775716 annualized to .105308588 Note that if payments were annual for 30 years at 10% the annual loan constant would be .106079248
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This note was uploaded on 02/07/2012 for the course FIN 4380 taught by Professor Staff during the Spring '08 term at Texas State.

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End of Chapter 18 Extra Mortgage Problems and Answers -...

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