Cash will you have from the sale once you pay off mortgage

Assignment Help Financial Management
Reference no: EM131605892

You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.)

Reference no: EM131605892

Questions Cloud

Money market hedging and forward market hedging : At what one-year forward rate would XYZ be indifferent between money market hedging and forward market hedging?
How much is your monthly payment on home mortgage : How much is your monthly payment on a home mortgage with the following terms? Borrow $250,000 for 30 years at 5% annual interest.
Principal of the loan and how much will go toward? interest : how much of the payment will go toward the principal of the loan and how much will go toward? interest?
Calculate the exact payback period : A project will cost $20,000 in total investment. Calculate the exact payback period.
Cash will you have from the sale once you pay off mortgage : how much cash will you have from the sale once you pay off the mortgage?
Significant flaw in payback method of capital budgeting : A significant flaw in the payback method of capital budgeting is that____________
Which form of the efficient market hypothesis : Which form of the efficient market hypothesis causes one to believe that there is not an advantage to insider trading, based on insider information?
What is the bond yield to maturity : A 25-year maturity bond with face value of $1,000 makes annual coupon payments. What is the bond’s yield to maturity if the bond is selling for $940?
Competitive structure and internal capabilities : Creating scenarios using broad economic conditions, competitive structure, internal capabilities, and financing capabilities.

Reviews

Write a Review

Financial Management Questions & Answers

  For portfolio of randomly selected stocks

For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true?

  Correctly priced-overpriced or underpriced

Firm K’s shares sell today for $45. It is forecast that the share price will be $51 at end of one year. Is firm K correctly priced, overpriced or underpriced.

  What price to sell them that product

If you are renewing a contract with a company where inflation is expected to occur, would you increase or decrease the products sold there? You expect payments with their currency. How would you determine when to get paid and at what price to sell th..

  Projects by using the npv decision rule

A firm evaluates all of its projects by using the NPV decision rule.

  What is your portfolios beta

If you invest 40 percent of your money in IBM, 30 percent in LUV, and 30 percent in ODP, what is your portfolio's beta?

  What is the present value-assuming the interest rate

If the interest rate is 9%, the 1-year discount factor is equal to ________. If the interest rate is 9%, the 10-year discount factor is equal to ________. What is the present value (PV) of $100000 received 6 years from now, assuming the interest rate..

  What is the rate of return on your savings

Your father helped you start saving $20 a month beginning on your 5th birthday. He always made you deposit the money into your savings account on the first day of each month just to "start the month out right." Today completes your 17th year of savin..

  A 3- year fully amortizing constant payment mortgage loan

a 3- year fully amortizing constant payment mortgage loan for 320000 is to be made with an interest rate of 5.

  Compute the profit from the arbitrage

If so, explain the steps that would create the arbitrage. Compute the profit from this arbitrage if you had $1,000,000 to use.

  What are its average accounts payable

Hinkle Corporation buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to $550,000 per year. On average, what is the dollar amount of total trade credit (..

  Use present worth for your calculation

Nabil is considering buying a house while he is still at university. The house costs $250,000, today. Renting out part of the house and living in the rest over his five years at school will net, after deducting expenses, $1, 800 income per month. He ..

  What is the present value of perpetual stream of cash flows

What is the present value of a perpetual stream of cash flows that pays $40,000 at the end of the year one and then grown at a rate of 4% per year indefinitely? The rate of interest used to discount the cash flows is 13%. the present value of the gro..

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