Calculate the monthly mortgage payment

Assignment Help Macroeconomics
Reference no: EM13179199

Suppose you want to borrow $200,000 to purchase a home. you have found terms that include a 30-year note with a (nominal) rate of 7.0% compounded monthly. The loan includes payment of 2.5 points, which will be paid out of the loan at closing. (One point is equal to 1% of the loan value).

A.) Calculate the monthly mortgage payment.

B.) How much interest is paid in the 2nd month's payment?

C.) How much principal is paid in the 2nd month's payment?

D.) Assuming the points are the only relevant closing costs associated with the loan, what is the APR on this loan?

The key concept to Case D is recognition that you will not have the full $200,000 loan value to apply against the purchase of the home , (due to the points), buyt you will have to ay back $200,000 in principal payments plus the accrued interest.

Reference no: EM13179199

Questions Cloud

What is the probability of selecting a value : the mean of a normally distributed population is 400 pounds. the standard deviation is 10 pounds. What is the probability of selecting a value between the mean and 415 pounds?
What is the likelihood that 5 will be broken : A company owns 300 laptops. Each laptop has an 7% probability of not working. You randomly select 20 laptops for your salespeople.
Find the mass that remains after t years : Find the mass that remains after t years.
What is the probability one prize goes to a man : John and Mary are one of the married couples at the party. If Mary wins a prize, what is the conditional probability that John will win the other prize?
Calculate the monthly mortgage payment : Assuming the points are the only relevant closing costs associated with the loan, what is the APR on this loan?The key concept to Case D is recognition that you will not have the full $200,000 loan value to apply against the purchase of the home , ..
What five features distinguish new charismatic religious : What FIVE features distinguish "new charismatic" religious movements in Nigeria? FIVE elements that gave rise to "the demand for Shari'a" in Nigeria.
How many did she buy : a person purchased some bags of insulation for $1000.if she had purchased 5 more bags for the same sum,they would have cost 12 cent less per bag.how many did she buy?
How to use linear regression to predict the price : The average price/gallon of gass in July over the past 4 years was $2.74, $3.65, $3.45, and $3.63. Use linear regression to predict the price of gas the following year? How would I set up this problem? Do I use years as my x variable?
What is the probability that maria will be paired : Maria and Thomas are part of a group of 8 women and 8 men who will participate in a chess tournament. The 16 players will be randomly paired up into groups of two.

Reviews

Write a Review

Macroeconomics Questions & Answers

  The impact of energy price on the aggregate supply

The impact of Energy price on the Aggregate Supply, this is a topic we have been discussing in my macroeconomics class and I am completely lost.

  Calculate the company free cash flow

The last free cash flow for a company was $51 million and it is expected it to increase at a constant rate of 4% indefinitely. The company's weighted average cost of capital is 12%.

  Third degree price discrimination strategy

A movie theater has estimated that demand for a movie ticket can be written as P1=10-Q1 for senior citizens and P2 = 12 - Q2 for rest of the consumers.

  Explain maturity extension program and reinvestment policy

Under the maturity extension program, the Federal Reserve sold or redeemed a total of $667 billion of shorter-term Treasury securities and used the proceeds to buy longer-term Treasury securities, thereby extending the average maturity of the secu..

  Macroeconomic study questions

Assume that the market labor supply and labor demand equations are given through Qs = 5W and Qd = 30 - 5W. If a minimum wage is set at $4.00 (W = 4),

  Examine the tools of fiscal policy explain how they are used

Examine the tools of fiscal policy also explain how they are used to reduce inflation or eliminate a recession.

  Illustrate what are the impacts of innovation and technology

Illustrate what are the impacts of innovation and technology on the cost of production.

  Okun law and unemployment inflation trade off

This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.

  Effective rate of protection for widgets prodcution

Suppose you want to produce WIDGETS in your country. The international price of an imported WIDGET is $50 and pays an import tariff of $10 per unit. Three inputs are needed to produce a WIDGET.

  Elucidate social media have a place in the business nation

Elucidate social media have a place in the business nation. How would you use social media to promote your business.

  Illustrate what does the term recession mean

Illustrate what does the term "Recession" mean and how do we know when one occurs. How does government intervene to move the economy out of a recession.

  Laws of supply and demand

D&Z Dry Foods Distributions specializes in the whole distribution of dry goods, such as rice and dry beans. The firm's manager is concerned about an article he read in the morning's Wall Street Journal

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd