What is the amount of each of the additional payments

Assignment Help Finance Basics

Reference no: EM131996274

Question: You may use your financial calculator or excel for calculations but be sure to show your work (i.e. rate, periods, payments, etc.). For the amortization schedules be sure to print the schedule so all columns fit on one page. For amortization schedules required for question 4 d. and f. only include the first and last pages of each of the schedules.

1. Jacoby Brissett is interested in buying a waterfront vacation home and has saved $100,000 for the down payment. His plans call for making additional monthly deposits into an investment account over the next 12 months. Jacoby Brissett wants to make the purchase 18 months from today and wants to have $400,000 saved up for the down payment.

a) What is the amount of each of the additional payments he must make for his plan to work out? Assume Jacoby can earn 4% annual return in his investment account.

b) Prepare an amortization schedule proving the answer you computed in a. is correct.

c) If Jacoby takes out a 30-year, $800,000 mortgage at 4%, what will his mortgage payments be?

d) Prepare an amortization schedule to prove that your answer is right and his mortgage will be paid off in 30 years.

e) Assume he pays an additional $500 towards his mortgage each month. How much sooner will he be able to pay off her mortgage?

f) Prepare an amortization schedule proving your answer in e.

Reference no: EM131996274

Questions Cloud

What mass in grams of black iron oxide is produced : (a) When 36.0 g H2O are mixed with 67.0 g Fe, which is the limiting reagent? (b) What mass in grams of black iron oxide is produced?

Percent yield of reaction : What was her (his) percent yield of this reaction?

What is the maximum price per share : What is the maximum price per share Belmont Co. should pay for Cilla Co. based on the following data for Cilla: PV of future cash flows $900 million.

What is the empirical formula of a compound containing c : t is the empirical formula of a compound containing C, H, and O if combustion of 1.23 g of the compound yields 1.8 g CO2 and 0.74 g H2O

What is the amount of each of the additional payments : What is the amount of each of the additional payments he must make for his plan to work out? Assume Jacoby can earn 4% annual return in his investment account.

How would the student prepare the solution : If solid NaOH is available, how would the student prepare the solution? (2) 5.3.2) If 2.00 M NaOH is available, how would the student prepare the solution?

What should be stock price after the warrants are exercised : McGovern Enterprises is interested in issuing bonds with warrants attached. The bonds will have a 30-year maturity and annual interest payments.

Initial concentration of chemical a : Chemical A decays over time as a second order reaction. If the concentration after a time of 250 seconds is .0063 M, and the K of the reaction is .0955

Determine the direction in reaction : Determine the direction in which the following reaction is spontaneous at 25 degrees: Mg^2+(aq) + K(s) Mg(s) + K^+(aq)

User Account

All Pages