How many months will it now take to pay off the loan

Assignment Help Financial Management

Reference no: EM131060931

A homeowner just bought a house and entered into a 30 year mortgage of $250,000. Set up an amortization schedule for loan to be repaid in equal installments at the end of each month over 30 years (360 payments). The interest rate is 5%.

a. For the 30th payment how much of the payment is payment of principle vs interest.

b. The homeowner was expecting to use an annual bonus to be made as an additional payment of $5,000 every 12th payment in addition to the normal loan payment. The homeowner’s goal was to reduce the overall amount of interest paid on the loan.

a. For the 30th payment how much is now the payment of principle vs. interest.

b. How many months will it now take to pay off the loan?

Reference no: EM131060931

Questions Cloud

Problem regarding the colloquial expressions : If you have difficulty recording, submit a full script in the notes section of your PowerPoint slides that reads the way the narration would have, had it been presented. Your submission will be assessed based in part on this script. You may includ..

What is new yield to maturity on the bond : You buy a bond for $994 that has a coupon rate of 6.1% and a 5-year maturity. A year later, the bond price is $1,184. (Assume a face value of $1,000 and annual coupon payments.) What is the new yield to maturity on the bond?

Analyze events that led up to current crisis with isis : This current events article is two-fold. First, provide a brief analysis of the events that led up to the current crisis with ISIS. Second, what role, if any, should the U.S. play in this conflict? Please be sure to follow all protocol regarding t..

What must the stock price be one year : This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year?

How many months will it now take to pay off the loan : A homeowner just bought a house and entered into a 30 year mortgage of $250,000. Set up an amortization schedule for loan to be repaid in equal installments at the end of each month over 30 years. For the 30th payment how much of the payment is payme..

Calculate the firm aftertax cash outflows for the first year : Suppose your company needs to raise $35.4 million and you want to issue 24-year bonds for this purpose. Assume the required return on your bond issue will be 7.9 percent, and you’re evaluating two issue alternatives: a 7.9 percent semiannual coupon b..

Officials in developing countries : Do you think government officials in developing countries such as Russia, China, and India welcome McDonald's? Do consumers in these countries welcome McDonald's? Why or why not?

Initial fixed asset investment-zero salvage value : Consider a four-year project with the following information: initial fixed asset investment = $470,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $30; variable costs = $20;

Perspective of innovation in a global environment : Throughout the course, you have been building toward the achievement of the following competencies: Analyze contemporary leadership practices from the perspective of innovation in a global environment.

User Account

All Pages