6. Assuming a 30 year mortgage rate of 7% (with monthly payments), and a $10,000 down...

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6. Assuming a 30 year mortgage rate of 7% (with monthly payments), and a $10,000 down payment what is the most money that an individual can spend on a house? 7. A retiree invests $400 a month for 10 years at a rate of 6% a year. How much will she have at the end of the 10 years? 8. A firm has $2,000,000 in a fund that is used to pay creditors. The fund earns 1.5% a year. If withdrawals are made once a week for 5 years, how much money can be taken out each week? 9. A company has been making monthly payments on a 10 year loan that was originally for $800,000. Its borrowing rate was 8.6% a year. How much does it still owe on the loan after 67 payments? 10. Which is more risky? A ten year Treasury bond or a three month Treasury note? Explain. 6. Assuming a 30 year mortgage rate of 7% (with monthly payments), and a $10,000 down payment what is the most money that an individual can spend on a house? 7. A retiree invests $400 a month for 10 years at a rate of 6% a year. How much will she have at the end of the 10 years? 8. A firm has $2,000,000 in a fund that is used to pay creditors. The fund earns 1.5% a year. If withdrawals are made once a week for 5 years, how much money can be taken out each week? 9. A company has been making monthly payments on a 10 year loan that was originally for $800,000. Its borrowing rate was 8.6% a year. How much does it still owe on the loan after 67 payments? 10. Which is more risky? A ten year Treasury bond or a three month Treasury note? Explain.

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6 To calculate the maximum amount an individual can spend on a house we need to consider the down payment and the monthly mortgage payments Assuming a 30year mortgage rate of 7 with monthly payments w... View the full answer