You purchase a house for $250,000 directly from the buyer who owns the home outright. You pay a 20 percent down payment. You sign a first mortgage, and the buyer agrees to finance the remaining$200,000 at 7 percent annual compound interest with annual end-of-year payments over 12 years. How much is a single yearly payment?

Use a calculator to help you find the total amoun t to be repaid on a mortgage under each of the following conditions . Use the table on previous page to help you.

$$\begin{aligned} \begin{array}{lccc} \textbf{Interest Rate} && \textbf{Term} && \textbf{Principal} && \textbf{To Be Repaid}\\ 11\% && 30\ \text{years} && \$56,000 && \underline{\qquad \qquad}\\ \end{array} \end{aligned}$$

If $\$ 100,000$ is borrowed to purchase a home, then the monthly payment $R$ is a function of the interest rate $i$ (expressed as a percent) and the number of years $n$ before the mortgage is paid. It is given by

$$R=f(i, n)=100,000\left[\frac{0.01(i / 12)}{1-(1+0.01(i / 12))^{-12 n}}\right]$$

Find $f(7.25,30)$ and interpret your answer.

Decide whether the following statement is true or false. Explain your reasoning. Assume $2017$ tax rates and policies When I calculated carefully, I found that it was cheaper for me to buy a house than to continue renting, even though my rent payments were lower than my new mortgage payments.

The amounts M (in billions of dollars) of home mortgage debt outstanding in the United States from 1990 through 2004 can be approximated by the function

$$M(t)=32.3 t^2+3769$$

where t=0 represents 1990.

Rewrite the function so that t=0 represents 2000 . Explain how you got your answer.

Use a calculator to help you find the total amoun t to be repaid on a mortgage under each of the following conditions . Use the table on previous page to help you.

$$\begin{aligned} \begin{array}{lccc} \textbf{Interest Rate} && \textbf{Term} && \textbf{Principal} && \textbf{To Be Repaid}\\ 8\% && 40\ \text{years} && \$45,000 && \underline{\qquad \qquad}\\ \end{array} \end{aligned}$$

A mortgage for 100,000 dollars is made with initial payments of 500 dollars per month for the first year. The interest rate is 9 percent. After the first year, payments will increase to an amount that makes the loan fully amortizable over the remaining 24 years with constant monthly payments.

How much interest will be deducted in the second year?

Suppose Joe and Mike purchase identical houses for $200,000. Joe makes a down payment of$40,000, while Mike only puts down $10,000. Assuming everything else is equal, who is more highly leveraged? If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to Joe’s and Mike’s net worth?

On January 1, 2018, Gundy Enterprises purchases an office for $360,000, paying$60,000 down and borrowing the remaining $300,000, signing a 7%, 10-year mortgage. Installment payments of$3,483.25 are due at the end of each month, with the first payment due on January 31, 2018. 1. Record the purchase of the building on January 1, 2018. 2. Complete the first three rows of an amortization schedule similar to illustration 9-1. 3. Record the first monthly mortgage payment on January 31, 2018. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? 4. Total payments over the 10 years are $\$ 417,990(\$ 3,483.25 \times 120$ monthly payments). How much of this is interest expense and how much is actual payment of the loan?

Use a calculator to help you find the total amoun t to be repaid on a mortgage under each of the following conditions . Use the table on previous page to help you.

$$\begin{aligned} \begin{array}{lccc} \textbf{Interest Rate} && \textbf{Term} && \textbf{Principal} && \textbf{To Be Repaid}\\ 10\% && 20\ \text{years} && \$85,900 && \underline{\qquad \qquad}\\ \end{array} \end{aligned}$$

Find the total monthly payment, including taxes and insurance.

$$\begin{array}{c|c|c|c|c} \hline \text { Mortgage } & \text { Interest rate } & \text { Term of loan } & \text { Annual taxes } & \text { Annual Insurance } \\ \hline \$ 89,560 & 3.5 \% & 10 \text { years } & \$915 & \$ 409 \\ \hline \end{array}$$

Use a calculator to help you find the total amoun t to be repaid on a mortgage under each of the following conditions . Use the table on previous page to help you.

$$\begin{aligned} \begin{array}{lccc} \textbf{Interest Rate} && \textbf{Term} && \textbf{Principal} && \textbf{To Be Repaid}\\ 10\% && 15\ \text{years} && \$98,300 && \underline{\qquad \qquad}\\ \end{array} \end{aligned}$$

Use a calculator to help you find the total amoun t to be repaid on a mortgage under each of the following conditions . Use the table on previous page to help you.

$$\begin{aligned} \begin{array}{lccc} \textbf{Interest Rate} && \textbf{Term} && \textbf{Principal} && \textbf{To Be Repaid}\\ 12\% && 20\ \text{years} && \$78,800 && \underline{\qquad \qquad}\\ \end{array} \end{aligned}$$

The Millers are planning to buy a home in the near future and estimate that they will need a 30-yr fixed-rate mortgage for $240,000. Their monthly payment$P$(in dollars) can be computed using the formula$ $P=\dfrac{20,000r}{1-\bigg(1+\dfrac{r}{12}\bigg)^{-360}}$ $where$r$is the interest rate per year. a. Find the differential of$P$.