Assignment 3_RE410_2023

You need a loan of $155,000 to buy a home. Choice 1: 30-year fixed rate at 7% with closing costs of $2600 and no points. Choice 2: 30-year fixed rate at 6.5% with closing costs of $2600 and 2 points. What is the total closing cost for choice 1? What is the total closing cost for choice 2? Why might choice 1 be the better choice? • A. The closing costs are lower. • B. The closing costs are higher. • C. The monthlv payment is lower. • D. The monthly payment is higher. Why might choice 2 be the better choice? • A. The closing costs are lower. • B. The closing costs are higher. C. The monthly payment is lower. © D. The monthly payment is higher.

← You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 6% with closing costs of $2900 and no points. Choice 2: 20-year fixed rate at 5.5% with closing costs of $2900 and 4 points. What is the monthly payment for choice 1? A (Do not round until the final answer. Then round to the nearest cent as needed.)

A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest and the second is a 95% loan for 25 years at 9.25% interest. Assuming the loan will be held to maturity, what is the incremental cost of borrowing the extra money? 18.75% OO 14.34% 13.50% 12.01%

need help with A only. The answer to B is 7.8%please help asap

A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest and 1 point and the second is a 95% loan for 25 years at 9.25% interest and 1 point. Assuming the loan will be held to maturity, what is the incremental cost of borrowing the extra money? O 12.01% O 14.34% 13.50% O 13.66%

1) The question screenshot has been attached down below answer question 9 a,b,c step-by-step.

Required: a to d. Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? e. What is the savings in interest cost between 3.50% and 5%? f. If Harriet uses 30 years instead of 25 for both 5% and 3.50%, what is the difference in interest? Complete this question by entering your answers in the tabs below. Required A to Required E Required F D Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 5% b. 25 Years, 4.5% c. 25 Years, 4% d. 25 Years, 3.5%

You need a loan of $130,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 30-year fixed rate at 7% with closing costs of $2100 and no points. Choice 2:30-year fixed rate at 6.5% with closing costs of $2100 and 3 points.

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6. (14pts) When purchasing a $210,000 house, a borrower is comparing two loan alternatives. The first loan is a 90 percent loan at 10.5 percent for 25 years. The second loan is an 85 percent loan for 9.75 percent over 15 years. Both have monthly payments and the property is expected to be held over the life of the loan. What is the incremental cost of borrowing the extra money?

A borrower is faced with choosing between two loans. Loan A is available for $76,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. Required: a. If the loan is repaid after 20 years, which loan would be the better choice? b. If the loan is repaid after five years, which loan is the better choice?

A borrower is faced with choosing between two loans. Loan A is available for $89,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. Required: a. If the loan is repaid after 20 years, which loan would be the better choice? b. If the loan is repaid after five years, which loan is the better choice? (Analyze the decision with both rates at two decimal places.)

A borrower is faced with choosing between two loans. Loan A is available for $85,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing.Required: a. If the loan is repaid after 20 years, which loan would be the better choice? b. If the loan is repaid after five years, which loan is the better choice?

Need Correct answer

Jill is leasing a $32,000 car for $599/month for three years. In three years, she expects to buy it outright for $16,000 at the same time she makes her last lease payment. If it costs her 5.5% to borrow, what is the implicit rate in the lease? Should she lease or borrow the money to get the car? (Hint: use the IRR function). B. C D F G Problem 1 Start Mo. 1 Мо. 2 Мо. 3 Мо. 4 Mo. 5 Мо. 6 Мо. 7 Cash flows (37,564) 599 599 599 599 599 599 599 Borrowing cost Implicit lease cost 5.5%

OLA #10.2 Natalie was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $450 at the beginning of every month for 5 years. At the the end of 5 years, purchase the car for $14,000. Buy option: Purchase the car immediately for $30,000. The money is worth 7.70% compounded monthly.   a. What is the Discounted Cash Flow (DCF) for the lease option? b. Which is the better option? Lease Option Buy Option Kindly use all the decimals DO NOT ROUND

1. You have a choice of leasing a truck for six years at $9,000/year, paid at the end of each year, or buying the truck for $44,000. At the end of six years the truck would be worthless. The interest rate is 5.5%. Would you lease or buy? 2. A similar situation as #1: lease for $9,000/year, or buy for $44,000, but if you buy the truck, and pay to maintain the truck (e.g. change oil and other fluids, replace windshield wipers, belts, tires, etc.), which are $500/year, paid at the end of each year, then at the end of six years, the truck would be worth $2,000 and you could sell the truck. Would you lease or buy?

Pls help correctly thanks, steps

es You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage for 80 percent of the $3,200,000 purchase price. The monthly payment on this loan will be $17,300. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Annual percentage rate b. Effective annual rate % % 8 # Next >

You need a loan of $165 comma 000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 15-year fixed rate at 4% with closing costs of $2100 and no points. Choice 2: 15-year fixed rate at 3.5% with closing costs of $2100 and 2 points.

When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%

Use the following to solve questions a. and b. with excel  A house with price of $250,000 20% down payment, loan amount $200.000 30-year fixed rate mortgage with interest rate as follows: Suppose that there is $2,500 origination cost.  a. Which choice would you like to choose if you will live in the house for 30 years?  b. Which choice would you like to choose if you will live in the house for 5 years?

A borrower is purchasing a property for $200,000 and can choose between two possible loan alternatives.  Loan A is a 90% loan for 25 years at 8% interest and 2 points and Loan B is a 95% loan for 25 years at 8.75% interest and 1 point. Assume the loans will be held to maturity, what is the incremental cost of borrowing the extra money? Assume that the loans will be repaid in 5 years.  What is the incremental cost of borrowing the extra money? Rework parts (a) and (b) assuming the lender is charging 3 points on Loan A and 2 point on Loan B.  What is the incremental cost of borrowing?

You need a loan of ​$175,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices.   Choice​ 1: 30​-year fixed rate at 7​% with closing costs of ​$1400 and no points. Choice​ 2: 30​-year fixed rate at 6.5​% with closing costs of ​$1400 and 2 points.   What is the monthly payment for choice 1?  What is the monthy Payment for choice 2?  What is the closing paymennt for choice 1?  What is the closing paymennt for choice 2?

A borrower is purchasing a property for $1,800,000 and can choose between two possible loan alternatives. The first is a 75% loan for 25 years at 9% interest and 1 point and the second is an 80% loan for 25 years at 9.25% interest and 1 point. Assume the loan term will be 5 years. What is the incremental cost of borrowing the extra money?

ery am Proctor Suppose you want to buy a $146,000 home. You found a bank that offers a 30-year loan at 5.3 % APR. What will be your monthly payment? (Round to the nearest cent.) 644.04 How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) Question Help: Video Message instructor Submit Question