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    100,000 mortgage loan to be repaid over 25 years in 300 monthly payments

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    6) You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments
    a) if the interest rate is 16% per year what is the amount of the monthly payment?
    Answer: PMT = 1,358.89
    b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?
    Answer: n = 166
    c) if you can pay 1500 per month, need to borrow 100000, and want a 25 year mortgage, what is the highest interest rate you can pay?
    Answer: i= 1.482% per mo.

    What does the below mean?

    - Do not round off the interest rate when computing the monthly rate, or you will not get the same answer reported here.
    - You must input PMT and PV with opposite signs.
    - You must input PMT and PV with opposite signs.

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    https://brainmass.com/business/finance/mortgage-loans-monthly-payments-493330

    Solution Preview

    Attached is the study guide in the Word document file.

    The following study guide is based on a BAII Plus calculator, though you can easily adopt it for other financial calculator models. I attached a picture of a BAII Plus calculator below with a highlight on the keys we will be using

    Note: The acronyms are the keys found in the financial calculator

    Let us first identify the common given:
    Present value of Loan (PV) = $100,000
    Type of payment is ...

    Solution Summary

    This solution helps answer questions about mortgage loans and monthly payments.

    $2.19

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