How much interest will you pay in the upcoming year

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Questions - Please show all your work.

Q1. The following are the expected returns on a portfolio of investments. What is the expected rate of return on the portfolio?

Investment

# of shares

Price per share

Expected return

A

2000

$20

10%

B

3000

$10

15%

C

1000

$15

8%

Q2. You take out a $200,000 mortgage for 20 years at 6%.

What is your monthly payment?

What is the principle and interest on the first payment?

What is the principle and interest on the twelfth payment?

How much interest will you pay over the 20 years?

Q3. You bought a house 8 years ago with a $250,000 mortgage. It was a 15 year loan with monthly payments which will pay off the loan when you make the last payment. The interest rate was 6%. What are your monthly payment and your current loan balance? How much interest will you pay in the upcoming year?

Reference no: EM133110190

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