Question: Rebecca just bought a house. Rebecca paid $1,000,000 for the house. Rebecca had a down payment of $200,000. Rebecca got a mortgage with a 2-year

Rebecca just bought a house. Rebecca paid $1,000,000 for the house. Rebecca had a down payment of $200,000. Rebecca got a mortgage with a 2-year term and a 25-year amortization period. Rebecca's mortgage rate was 7.2% compounded semi-annually. Rebecca will make monthly mortgage payments.

Requirement

1) What is the amount of the Rebecca's monthly payment?
2) How much will Rebecca pay in interest during the 1st month of the mortgage?
3) Rebecca plans on making her required monthly payment during the life of the mortgage. How much will she owe on the mortgage at the end of the term?
4) How much will Rebecca pay in interest over the life of the mortgage?

Step by Step Solution

★★★★★

3.31 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Rebeccas Mortgage Calculations 1 Monthly Payment Lets first calculate the loan amount Loan amount Ho... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Corporate Finance Questions!

Alternatively, determine by how much they would have to reduce their retirement income need such that they do not have a shortfall. For this option, the couple would create a level income until...

lim cos z-2 2 is -0

1. a. b. C. d. e. MULTIPLE CHOICE The ratio percentage of earnings retained is the same as that termed: dividend yield dividend payout 2. a. b. C. d. e. UIBS C. d. e. 4. a. b. C. d. e. Class Work 1...

Your sisters Rebecca and Debra each just bought a house. Each sister paid $1,150,000 for the house. Each sister had a down payment of $300,000. Each sister got a mortgage with a 3-year term and a 25...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

Quantitative Analysis Estimate each propertys current value by calculating the present discounted value of expected future cash flows. The forward-looking cash flows have been provided for you in the...

(Questions from Lecture and Article) - Discussion Board Activity I need to read the following Lecture Note and the ?Wall Street Journal? articles that I uploaded, and writeanswers for theDiscussion...

Hi can you help me with Problem 5 please. Thanks. I don't understand how to do 5b and I don't know if i got the right price for Bond B. AFF 210 ASSIGNMENT ONE SUMMER 2017 = STUDENT #1, NAME:...

Can you please help me with Problem # 2 and 4 in excel. Thank you! AFF 210 ASSIGNMENT ONE SUMMER 2017 STUDENT #1, NAME: ______________________ STUDENT NUMBER: ___________ STUDENT #2, NAME:...

*please show formulas on excel* TU X X A wat Painter TI Font Paragraph You are planning to buy a 4 bedroom house in Hamilton that has a price of $1,200,000. One of the local banks has offered you a...

to Partube) and that on June 10, monthly Det the cast 3000 the second credit tance of 57.100 corded the wine and we recorded into 0572.00 53,000 5145.000 SA to Partube) and that on June 10, monthly...

please help Continuing Payroll Project: Prevosti Farms and Sugarhouse - EERF (Algo) Prevosu Farms and Sugarhouse pays. Its employees according to their job classification. The following employees...

The following independent situations require professional judgment for determining when to recognize revenue from the transactions. Identify when revenue should be recognized in each of the...

1)Jack works for a polymer firm that has developed a new insulation material that has the potential to make newly constructed homes more energy efficient. He is asked to develop a voice of the...

BPR always involves automation. Group of answer choices True False

P.14 A clinic specializes in shoulder injuries. A patient is randomly selected from the population of all clinic clients. Let S be the number of doctor visits for shoulder problems in the past six...

Question 1 0 ( 1 0 pts ) Given the following TST , which of the following strings are not stored as keys in the TST ? A ) ear B ) holdup C ) hum D ) hits E ) hill

What are multinational corporations (MNCs) and what economic roles do they play?

For the cash flows shown, the value of X that will make the present worth in year 0 equal to $5000 at an interest rate of 10% per year is closest to: (a) $2895 (b) $3125 (c) $3305 (d)$3765 Year 01 2...

Charlene plans to place an annual savings amount of A = $27,185 into a retirement program at the end of each year for 20 years starting next year. She expects to retire and start to draw a total of R...

On-site granular ferric hydroxide (GFH) systems can be used to remove arsenic from water when daily flow rates are relatively low. If the operating cost is $600,000 per year and the public health...

It was hypothesized that road construction workers do not engage in productive work 20 minutes on the average out of every hour. Some claimed the nonproductive time is greater than 20 minutes. An...

For your e-mail, you use a filter to block spam from your inbox. The number of items blocked by day of week is recorded and Minitab is used to perform the analysis that follows. Here are the results:...

The City of Maumee comprises four districts. Chief of Police Andy North wants to determine whether there is a difference in the mean number of crimes committed among the four districts. He examined...