Compute hillary monthly mortgage payments

Reference no: EM132180082

Questions -

Q1. BAC offers investments that pay 12 percent interest compounded monthly, whereas JPM offers investments that pay 12.25 percent interest compounded semiannually. Which investment offers the better effective annual return?

Q2. Alisa's bank advertises a savings investment that pays 6 percent compounded monthly. What is the investment's (a) annual percentage rate (APR) and (b) effective annual rate (rEAR)?

Q3. Geoff recently graduated from LaSalle University. While at LaSalle, Geoff took out a $50,000 student loan. His loan requires him to make monthly payments for a 10-year period.

(a) If the simple annual interest is 4.2 percent, what are Geoff s monthly payments?

(b) To the nearest dollar, how much will Geoff owe on his student loan after he makes payments for three years?

Q4. When Hillary purchased her house 12 years ago, she took out a 30-year mortgage for $220,000. The mortgage has a fixed interest rate of 6 percent compounded monthly.

(a) Compute Hillary's monthly mortgage payments.

(b) If Hillary wants to pay off her mortgage today, for how much should she write a check? She made her most recent mortgage payment earlier today

Q5. Carla purchased a new car earlier today for $32,000. She financed the entire amount using a five-year loan with a 3 percent interest rate (compounded monthly).

(a) Compute the monthly payments for the loan.

(b) How much will Carla owe on the loan after she makes payments for two years (i.e., after 24 payments)?

Reference no: EM132180082

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