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anonymous

  • one year ago

Nevaeh finances $147,500 to purchase a townhouse with a 30/8 balloon mortgage at 3.6%. What is the remaining balance at the end of the mortgage? $83,122.40 $93,916.00 $113,753.73 $122,166.82

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  1. anonymous
    • one year ago
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    @zepdrix

  2. anonymous
    • one year ago
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    @wio

  3. Plasmataco
    • one year ago
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    hmm...

  4. Plasmataco
    • one year ago
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    what do you mean by 30/8 baloon morgage?

  5. anonymous
    • one year ago
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    The 30 means that the beginning fixed monthly payments are going to be calculated as if the mortgage would be paid off in 30 years. The 8 means that fixed payments will be made for 7 years

  6. anonymous
    • one year ago
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    sorry for 8 years

  7. Plasmataco
    • one year ago
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    147000*(3.6)^30?

  8. anonymous
    • one year ago
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    @zepdrix

  9. Plasmataco
    • one year ago
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    there is a formula for this.

  10. anonymous
    • one year ago
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    @mathmate can you help me

  11. anonymous
    • one year ago
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    hello @mathmate

  12. anonymous
    • one year ago
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    are you there @mathmate

  13. anonymous
    • one year ago
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    @hero can you help me out here

  14. mathmate
    • one year ago
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    Yeah, I am on something. I will help you if no one does, a little later on!

  15. anonymous
    • one year ago
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    oh ok @mathmate

  16. anonymous
    • one year ago
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    @jim_thompson5910 right?

  17. jim_thompson5910
    • one year ago
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    let me think

  18. jim_thompson5910
    • one year ago
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    ok a calculator is best for this go here http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx and type in what you see in the attached image I'm posting

  19. jim_thompson5910
    • one year ago
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    instead of hitting "calculate" hit the "show amortization schedule" button which is below the calculate button let me know when you've done that

  20. anonymous
    • one year ago
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    alright did it @jim_thompson5910

  21. jim_thompson5910
    • one year ago
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    ok so 8 years from now is 2015+8 = 2023 scroll down til you get to the row that starts with June 2023

  22. jim_thompson5910
    • one year ago
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    what is the dollar figure in the last column of that row?

  23. anonymous
    • one year ago
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    $122,166.82

  24. jim_thompson5910
    • one year ago
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    good

  25. anonymous
    • one year ago
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    Aaliyah obtained a 25-year, fixed rate mortgage for $220,500 on a home that cost her $243,950. If the interest rate on the mortgage is 6.15%, how much interest will Aaliya pay over the life of the mortgage?

  26. anonymous
    • one year ago
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    Would this one be the same thing?

  27. jim_thompson5910
    • one year ago
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    that's the remaining balance after 8 years that amount is to be paid off or refinanced somehow

  28. jim_thompson5910
    • one year ago
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    you can use the same calculator, yes

  29. anonymous
    • one year ago
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    wait but it gives me two values @jim_thompson5910

  30. jim_thompson5910
    • one year ago
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    what do you mean?

  31. anonymous
    • one year ago
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    because it says that she is recieving a fixed rate

  32. anonymous
    • one year ago
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    that she got at first for 243950

  33. anonymous
    • one year ago
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    do i plug in for the mortgage value 220,500

  34. jim_thompson5910
    • one year ago
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    hmm not sure, but let me think

  35. anonymous
    • one year ago
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    yeah thats what got me confused at the beginning

  36. jim_thompson5910
    • one year ago
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    does it give you any answer choices?

  37. anonymous
    • one year ago
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    $257,766 $188,341 $234,316 $211,791

  38. jim_thompson5910
    • one year ago
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    ok you're going to type in 220500 into the "Mortgage amount" box

  39. jim_thompson5910
    • one year ago
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    6.15 is the interest rate 25 is the number of years use that calculator to figure out the monthly payment and tell me what you get

  40. anonymous
    • one year ago
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    I got 1,440.97

  41. anonymous
    • one year ago
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    @jim_thompson5910

  42. jim_thompson5910
    • one year ago
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    that's the monthly payment multiply that by 300 300 months = 25 years * (12 mon/1 year)

  43. anonymous
    • one year ago
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    so that would be 432291

  44. anonymous
    • one year ago
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    @jim_thompson5910

  45. jim_thompson5910
    • one year ago
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    now subtract off the mortgaged amount 432,291-220,500 = 211,791

  46. anonymous
    • one year ago
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    Riley made a 18% down payment on a home that cost $212,400. He financed the remaining amount using a 25-year, fixed-rate mortgage at 5.85%. His monthly payment will be $1,106.25. Riley will pay for two discount points, a 0.5% origination fee, brokerage fee, state documentary taxes on the deed and the mortgage, and the intangible tax. Discount points equal 1% of the mortgage amount. Documentary stamp tax on deed is $0.70 per $100 or portion thereof. Documentary stamp tax on mortgage is $0.35 per $100 or portion thereof. Mortgage broker fee is $185 plus 3% of the mortgage amount. Intangible tax is 0.2% of the mortgage amount. What is the total cost of Riley’s home including the principal, interest, down payment, and fees? $382,351.08 $556,484.08 $384,629.00 $346,767.20

  47. anonymous
    • one year ago
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    @jim_thompson5910

  48. anonymous
    • one year ago
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    @jim_thompson5910

  49. jim_thompson5910
    • one year ago
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    let me think, but mathmate go ahead and post what you get

  50. mathmate
    • one year ago
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    @gabylovesu Sorry, it's getting late for me tonight. If the calculator does not do your problem, you can tag me or @jim_thompson5910 tomorrow. But I think if the calculator worked for the first problem, it should be good for similar problems.

  51. jim_thompson5910
    • one year ago
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    still thinking but I may have the answer, one sec

  52. anonymous
    • one year ago
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    ???

  53. jim_thompson5910
    • one year ago
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    I'm stuck on the stamp parts. Do you have any formulas for those? I'm trying to determine if the stamp taxes are based on the mortgage amount or the value of the home.

  54. anonymous
    • one year ago
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    Like the documentary stamp act

  55. anonymous
    • one year ago
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    ???

  56. jim_thompson5910
    • one year ago
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    yeah for the deed and the mortgage

  57. jim_thompson5910
    • one year ago
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    do you see those formulas anywhere in your notes?

  58. anonymous
    • one year ago
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    well they are not really formulas but steps

  59. jim_thompson5910
    • one year ago
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    can I have a look? through a screenshot maybe?

  60. anonymous
    • one year ago
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    This is an example of how they used it The buyer typically pays the documentary stamp tax on the mortgage. In Florida, a buyer will pay $0.35 for every $100 (or portion thereof) of borrowed money. To determine the tax on the mortgage, round the amount borrowed up to the next $100. Then multiply that amount by 0.35 divided by 100, or 0.0035.

  61. jim_thompson5910
    • one year ago
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    ok I'll try that

  62. jim_thompson5910
    • one year ago
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    I'm off by about $35 and I'm not sure why

  63. jim_thompson5910
    • one year ago
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    this is what I'm getting Downpayment = 0.18*212400 = 38232 Mortgage Amount = 212400 - 38232 = 174168 Total amount paid back (principal + interest) = 1106.25*25*12 = 331875 Discount points = 2*0.01*174168 = 3483.36 Origination Fee = 0.005*174168 = 870.84 Documentary stamp tax on deed (based on home value) 212,400*0.70/100 = 1486.80 Documentary stamp tax on mortgage (based on mortgage value) 174168 rounds to 174200 174200*0.35/100 = 609.7 Mortgage broker fee = 185 + 0.03*174168 = 5410.04 Intangible Tax = 0.002*174168 = 348.336 = 348.34 Add up the results: 38232+331875+3483.36+870.84+1486.80+609.7+5410.04+348.34 = 382,316.08

  64. anonymous
    • one year ago
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    ok

  65. jim_thompson5910
    • one year ago
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    is there anything in your notes about "Documentary stamp tax on deed" ?

  66. jim_thompson5910
    • one year ago
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    you provided the "documentary stamp tax on the mortgage" portion and that was helpful

  67. anonymous
    • one year ago
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    Yeah I do @jim_thompson5910

  68. anonymous
    • one year ago
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    The seller typically pays the documentary stamp tax on the deed. As one example, in almost every county in Florida, the seller is charged $0.70 for every $100 (or portion thereof) on the sale price of the house. To determine the tax on the deed, round the selling price up to the next $100. Then multiply that amount by 0.70 divided by 100, or 0.007. Regardless of whether a buyer pays cash for a house or uses financing, the seller is still responsible for the documentary stamp tax on the selling price.

  69. jim_thompson5910
    • one year ago
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    ok let me try something

  70. jim_thompson5910
    • one year ago
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    yeah I'm still getting 382,316.08 so I'm guessing the answer should be 382,351.08 there's either a rounding error somewhere or I'm missing some fee(s) ?

  71. anonymous
    • one year ago
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    yeah

  72. jim_thompson5910
    • one year ago
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    honestly i don't know why they make it so complicated with all these taxes and fees. It's kinda ridiculous

  73. anonymous
    • one year ago
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    No they do not know how to make proper questions

  74. anonymous
    • one year ago
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    Colin and Payton bought 79 shares of Stock A at $63 per share, 43 shares of Stock B at $119 per share, and a ten-year $7,500 bond with a 14.91% coupon for $7,000. Colin and Payton sold all stocks and bonds yesterday. Stock A was $78 per share and Stock B had a value of $131 per share. If neither stock paid a dividend, which investment has the highest rate of return? Stock A Stock B Bond Stock A and Bond

  75. anonymous
    • one year ago
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    For this question I It would be Stock A

  76. jim_thompson5910
    • one year ago
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    Stock A total cost = 79*63 = 4977 total revenue = 79*78 = 6162 Rate of return = (revenue - cost)/cost = (6162-4977)/4977 = 0.238095 Stock B total cost = 43*119 = 5117 total revenue = 43*131 = 5633 Rate of return = (revenue - cost)/cost = (5633-5117)/5117 = 0.100840 Bond total cost = 7000 total revenue = 7,000+0.1491*7500*10 = 18,182.5 Rate of return = (revenue - cost)/cost = (18182.5-7000)/7000 = 1.5975

  77. jim_thompson5910
    • one year ago
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    So it looks like the bond has the highest rate of return

  78. anonymous
    • one year ago
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    Piper invested $7,400 in a Certificate of Deposit, $4,980 in a corporate bond, $5,100 in a common stock, and $6,350 in a preferred stock, The COD has a rate of return of 3.4%; the corporate bond is 5.8%; the common stock’s rate of return is –1.9%; and the preferred stock has a rate of return of 4.6%. What is Piper’s weighted mean rate of return? 4.60% 3.90% 2.98% 3.09% @jim_thompson5910

  79. mathmate
    • one year ago
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    @jim_thompson @gabylovesu For Riley's problem, I get exactly $382316.08 as well, including all charges. Could Gaby check on two things: 1. typo's on the question,just in case 2. According to the notes, the seller is responsible for the doc.stamp tax on deed (perhaps only in Florida), so Riley should not have to pay the $1486.80.

  80. mathmate
    • one year ago
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    For Collin & Payton, \(at~maturity\) the bond will only pay 7500*1.1491=8618.25. So return = (8618.25-7000)/7000=23.11% It was not stated whether the bond was sold at maturity value. Even so, stock A (23.8%) still gets the highest return.

  81. mathmate
    • one year ago
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    Piper, For each investment, multiply the value of each investment by the rate of return to get the return amount in dollars. Calculate the total value of the investments and the total of the returns. Weighted mean rate = Total return / total investment

  82. mathmate
    • one year ago
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    @gabylovesu If you are interested in calculating Nevaeh's problem (the first one) using formulas instead of calculator, please let me know.

  83. jim_thompson5910
    • one year ago
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    @mathmate for the bond one, don't you have to include coupon payments as well?

  84. mathmate
    • one year ago
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    @jim_thompson5910 lol, I think it's a different interpretation between us. For "and a ten-year $7,500 bond with a 14.91% coupon for $7,000." I interpreted it as "a $7500 bond for $7000. The bond carries a 14.91% coupon".

  85. jim_thompson5910
    • one year ago
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    I'm not sure anymore, but I thought the bond would provide coupon payments for 10 years

  86. mathmate
    • one year ago
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    Neither am I. However, there is such a thing as a "zero coupon bond", although the question doesn't specify. In any case, the coupons would pay back the nominal value, which comes to be the same total amount. The thing is, the date of disposition (maturity) is not flexible. The question seems to give the idea the bond was sold at the same time as the shares.

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