Amortized payment, Financial Accounting

Assignment Help:

Amortized Payment

You purchase a house that costs $800,000 with an 8%, 30-year mortgage. You make a 20% down payment to avoid PMI insurance.

(i) What is your monthly payment?

(ii) Amortize the first and second payments.

(iii) Suppose after 7 years you refinance at 7% the remaining balance at a cost of $15,000, for 30 years. What is your new monthly payment? Assume refinancing cost is rolled back into the mortgage.


Related Discussions:- Amortized payment

Fair value adjustment-group accounts, Fair value adjustment IFRS 3 requir...

Fair value adjustment IFRS 3 requires that goodwill on consolidation should be based on the fair values of the net assets of the subsidiary company on the date of acquisition. T

With the ddm formula calculated growth rate, Using CAPM's formula, Retur...

Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 1.7*(9% - 1%)

Assume that you are the president of gaslight company., Assume that you are...

Assume that you are the president of Gaslight company. At the end of the year (December 31, 2011 of operation.

Termination of office of trustee-bankruptcy, TERMINATION OF OFFICE OF TRUST...

TERMINATION OF OFFICE OF TRUSTEE The trustee may vacate office in the following ways: 1. Resignation : He may resign at a meeting of creditors and with their consent. 2.

Quarterly cash payments budget, Emily Jackson, RSC Designs management accou...

Emily Jackson, RSC Designs management accountant, is in charge of preparing the master budget for 2013.  She has gathered the following information: 1. Annual profit for the 201

Explain the rules of debits and credits, A classmate is considering droppin...

A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a wa

Which is not necessary in order for corporation to pay cash, Q. Which one o...

Q. Which one of the following is not necessary in order for a corporation to pay a cash dividend? a. Adequate cash b. Approval of stockholders c. Declaration of dividends by the bo

measure the initial investment outlay, Home Inc. is considering buying a n...

Home Inc. is considering buying a new piece of equipment, which will cost $715,000 and has an economic life of 5 years, in order to make a new line of product.  The company suppose

One period rate - equilibrium, Suppose that the one-period rate is 4%. Expl...

Suppose that the one-period rate is 4%. Explain why a two-period rate of 6% cannot be an equilibrium when individuals expect the one-period rate to remain constant.

What is the internal rate of return of the project, Hydroponics is consider...

Hydroponics is considering adding another greenhouse that would cost $95,000 and generate $20,000 in annual net cash flows over its 8 year expected life. What is this project's int

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd