Three years ago the Biggs purchased a house for $675,000. They made a down payment of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Three years ago the Biggs purchased a house for $675,000. They made a down payment of 20% and took out a mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi- annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. (d) What percentage of the mortgage have they paid off after making 3 years of payments? Express your answer in 2 decimal places and do not enter "%" sign. Three years ago the Biggs purchased a house for $675,000. They made a down payment of 20% and took out a mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi- annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. (d) What percentage of the mortgage have they paid off after making 3 years of payments? Express your answer in 2 decimal places and do not enter "%" sign.
Expert Answer:
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
Students also viewed these finance questions
-
In 2015, Jose purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2018, when the fair market value of...
-
In 2016, Jos purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2019, when the fair market value of the...
-
In 2001, Ellen purchased a house for $60,000 to use as her personal residence. She paid $12,000 and borrowed $48,000 from the local savings and Loan Company. In 2005 she paid $10,000 to add a room to...
-
Terrance is a 13-year-old 8th grader, who is an average student. He is rarely ever disruptive in class and gets along well with his peers. His teacher always noticed that he was normally high-strung,...
-
The Woods Co. and the Garcia Co. have both announced IPOs at $40 per share. One of these is undervalued by $8, and the other is overvalued by $5, but you have no way of knowing which is which. You...
-
Monochromatic light illuminates a pair of thin parallel slits at normal incidence, producing an interference pattern on a distant screen. The width of each slit is 1/7 the center-to-center distance...
-
Laura Neilson, a job specialist with Vocational and Educational Services for Individuals with Disabilities, responded to an advertisement in a New York newspaper for a position as a shower, a job...
-
Javier Gonzales is the manager of the Repairs and Maintenance Department of JG Industries. He is responsible for preparing his departments annual budget. Most managers in the company inflate their...
-
Question 11pts The APRN unit director is working at an agency that has a high incidence of medication errors, specifically with heparin. One recent error had a patient receive twice the prescribed...
-
There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this property, approached John to discuss the idea of selling it to him. John is interested. Ellen knows that...
-
The general solution of the function y/ = 0.5y is y = 0.5eC%; %3D True O False
-
Consider the sequences (r) and (Sn) defined recursively by ro 1, so =0, and n+1 = rn/2, Sn+1 = Sn+n+1 for n0. (a) What are the formulas for the nth terms rn and s, of these sequences? (b) What is the...
-
ABC Company has ordered $300,000 of office supplies from G&T Supply Limited on December 1. The supplies will be delivered January 31 with credit terms 2/10 net 30. ABC has a year-end of December 31....
-
Questions 3 - 4 (Part A) uses the following data: Unique Limited has three sales divisions, High Value, Best Value, and Cut-Price Value. The Year 1 financial performance for the Best Value division...
-
A golf ball is thrown on a golf course. The target is at 1 = 18.7 m and lower than the initial point by h = 1.7 m. The golfer lifts the ball at a theta = 54 deg angle. VA Ako B x e 1. Write the 6...
-
Consider a Galois field GF(23) based on the primitive polynomial h(x) = 1 + x + x. (a) Derive the Galois field based on the given primitive polynomial in terms of binary sequences, polynomial...
-
Conduct Interview of an Entrepreneur that includes following questions 1: What is the name of your Business? 2. When/Why did you start your business? 3: What advice you will give anyone going to...
-
Swifty company is a publicly held corporation whose $1 par value stock is actively traded at $30 per share. The company issued 3400 shares of stock to acquire land recently advertised at $93000. When...
-
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a...
-
Natalie's estate includes the following assets. ________ ___________________________Fair Market Value______________ ____________________________Date of Death __________Six Months Later Apartment...
-
Discuss the concept of statutes of limitations in the context of the Federal income tax law. a. Who benefits when the statute applies-the government, the taxpayer, both? b. What happens when the...
-
Where does the management accounting function fit into an organizations structure?
-
What are the ethical responsibilities of management accountants?
-
Diana Corporation provides the following information for 2017: Calculate (a) Cost of goods manufactured in 2017 and (b) Cost of goods sold in 2017 Beginning work-in-process inventory, 1/1/2017 Total...
Study smarter with the SolutionInn App