Review Set #4 4 2 Donna is buying a new condo priced at S300.000. She is going t

Question

Review Set #4 4 2 Donna is buying a new condo priced at S300.000. She is going to make an 18% down payment. She will take out a 20-year mortgage at 3.9% compounded monthly to pay I. 0 a Estimate the total she will have to pay at closing. b. What will her mortgage payments be? c. What will her annual property tax bill be? Property tax bills are due twice a year. How much will she have to pay in tax every six months? Roger took out a student loan of $15,000 two years before he graduated. It was an unsubsidized loan at 4% compounded monthly. He was charged 1.25% in fees. H make any payments while in school. 2. e did not a. How much did he pay in fees? b. If he agrees to an 8-year repayment plan, what will his monthly payments be? c. How much will he pay in total on the loan? d. How much interest will he pay? e. Make an amortization table showing the first 3 months of his loan repayment. Jay also took out a $15,000 unsubsidized student loan 2 years before he graduated with the same rates as Roger's loan. Jay's parents wanted to belp out so they agreed to pay the interest on the loan while Jay was finishing school 3. a. If he agrees to an 8-year repayment plan, what will his monthly payments be? b. How much will he pay in total on the loan? c. How much interest will he pay? Gia wants to have S60.000 in eight years for a new car. He found an annuity paying 3 compounded monthly 4. How much does he have to deposit each month to reach his goal? He decides he can only afford S500 per month, how much will he have in eight years? How much interest will he have earned? a. b. c. If he used a CD instead of an annuity how much would he need to deposit to reach his $60,000 goal? d. Julie was preapproved for a $250,000 loan. payment so she can avoid paying PMI. What is her maximum home price? 5, Her parents have agreed to give her a 20% down 657 7th Edition Chapter 10: Metacognition

Explanation / Answer

b) She will take out $246,000 ($300,000 - $54,000) on a 20 years mortgage at 3.9% compounded monthly. Her EMI would be

EMI = [P * R * (1+R)^N] / [(1+R)^N-1]

=[246,000 * 3.9/12 * (1 + 3.9/12)^240] / [(1 + 3.9/12)^239]

=[246,000 * 0.00325 * 2.179] / 1.816

=1,742 / 2.172

=$1,478

c) the tax rate applicable will be determined in accordance with the law of the land. Hence, the applicable country needs to be known.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.