How much does our escrow add to our monthly loan payment

Assignment Help Finance Basics
Reference no: EM132005282

Question: A) How much, rounded to the nearest dollar, would we have to deposit now into an account paying 0.6125% compounded annually to have 25% down payment on a $547,800 house six years and eight months from now?

B) How much less, rounded to the nearest dollar, would we have to deposit to have our down payment of we could earn 6 1/8 % compounded continuously of 0.6125% compounded annually?

C) If the escrow on our loan for the house in part A) consists of liability insurance that is $ 9865 per year, mortgage insurance that is 0.81% of the amount we had to borrow for the house in part A), and annual property taxes are 1.09% of the assessed value [ which is the selling price of the house in part A)], how much does our escrow add to our monthly loan payment?

Reference no: EM132005282

Questions Cloud

What is the term used to identify the risk : ACC504 Advanced Auditing Questions - What is the term used to identify the risk that the client's financial statements may be materially false and misleading
How much would you pay today for a zero-coupon bond : How much would you pay today for a zero-coupon bond maturing in 8 years? A company with similar risk has a bond maturing the same day that yields 8%.
What is the yield to call : Multiplex Entertainment bonds are currently selling for $1,160 and have a par value of $1,000. They pay a $95 annual coupon and have a 15-year maturity.
Socialism and democracy in theory of fascism : Explain why Mussolini had such contempt for democratic politics, socialism and democracy in his theory of Fascism.
How much does our escrow add to our monthly loan payment : How much, rounded to the nearest dollar, would we have to deposit now into an account paying 0.6125% compounded annually to have 25% down payment on a $547,800.
Prepare a paper detailing the role of corrections officials : Prepare a paper detailing the role of corrections officials. At a minimum, your paper should explain the corrections officers' place within the social roles.
Social and political doctrines of fascism : Identify some of the positive moral benefits that war brings to a society according to Benito Mussolini in The Social and Political Doctrines of Fascism.
Eruption of brutal warfare in europe : How and why does she see the eruption of brutal warfare in Europe in 1914 as but an extension into Europe of European imperialism
Why should the investor purchase the bond : How much would ana investor be willing to pay for a $1000, 10 percent coupon bond, with 23 years to maturity if the investor requires a 9 percent return.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine present price of stock

Before two years, General Materials and standard Fixtures' stock price were the same Over the first year, General Materials' stock price increased by 10 percent while Standard Fixture's price decreased by 10 percent.

  What coupon rate should the griswold co. set on their bonds

24. The Griswold Co. wants to raise $8 million by selling some coupon bonds at par. Comparable bonds in the market have a 6 percent semi-annual coupon, 8 years to maturity, and are selling at 96.9 percent of par. What coupon rate should the Gr..

  What is fama debt-equity ratio

Fama's Llamas has a weighted average cost of capitalof 9.8 percent. The company's cost of equity is 13 percent, and its cost of debt is 6.5 percent. The tax rate is 35 percent. What is Fama's debt-equity ratio?

  Reward-to-volatility ratio for the equity fund

The rate on Treasury bills is 6.8%. Your client chooses to invest $120,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund?

  What is the book value per common share equation

What is the book value per common share equation? The textbook we are using doesn't give us the actual equation for this... I'm a little rusty in my accounting as I have taken accounting in about 2 1/2 years.

  Calculate the holding period return

The prices for the Guns and Hoses Company for the first quarter of 2005 are given below. Calculate the holding period return for February.

  Select the possible ways that this individual might view

select the possible ways that this individual might view project management: Individuals-  Upper-level manager .-  Project manager - Functional manager -  Project team member.

  Type of business and wonders

Mort does not know much about this type of business and wonders about its long term potential. An important trend for Mort to consider is that:

  What is the target debt to asset ratio

Part A: What is the target debt to asset ratio? Part B: How many shares of JKL stock must you sell to undo the leverage if you can loan out funds at 10 percent interest?

  Investment in portfolio

Describe specific aspects of each type of fund that an investor needs to consider before including the investment in their portfolio.

  Calculate hunter''s rate of return on total assets

Use the DuPont system to calculate the return on assets for the two years, and determine why they changed.

  Discuss the possibility of a not-for-profit health care

Discuss the possibility of a not-for-profit health care organization issuing stock and why the management of such an organization might want to do this. Explain your rationale.

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