1. Your sister bought a condominium unit for P9 300 through a condominium loan which she availed of from a universal bank at a fixed annual rate of 8% for 10 years. How much would be your sister's monthly amortization if she is required to pay an equity of 30% of the total price of the condominium? How much is the remaining balance after the 36th payment?

Q: Margaret Moore expects to need $44,000 for a down payment on a house in six years. How much would…

A: Present Value  =Future Value / (1+rate)^n Where, rate = 8.25% n = no. of year i.e. 6 Future Value =…

Q: Suppose James will have $25,000.00 for a down payment on a house in 6 years. How much would he have…

A: The question is based on the concept of future value calculation of an investment with a monthly…

Q: Amna has a housing loan of $50,000 over 15 years with a 6% interest rate. According to the Bank he…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of…

A: Here, To Find: Maximum monthly mortgage payment =?

Q: Vanna has just financed the purchase of a home for $200 000.She agreed to repay the loan by making…

A: The question is based on the concept of loan and amortization of loan. Loan is paid off in equal…

Q: 8. Your brother-in-law borrowed $2,000 from you 4 years ago and then disappeared. Yesterday he…

A: Future Value Future Value is the value which is measured at a specified date at a given interest…

Q: A newly wedded couple is planning to buy a two bedroom apartment in Windhoek for N$280000. He is…

A: The objective of the question is to calculate the total amount to be paid to the bank, the monthly…

Q: Ann Hopkins borrowed $60,000 for her child’s education. She must repay the loan at the end of 8…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: Larry Davis borrows $87,000 at 11 percent interest toward the purchase of a home. His mortgage is…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A man buys a house for a $245,000. He pays $70,000 down and takes out a mortgage at 5.1% for 25…

A: Given: The cost of house = $245,000 Down payment on house = $70,000 Mortgage rate = 5.1% Time period…

Q: Your brother has asked you for a loan and has promised to pay back $7,750 at the end of three years.…

A: Present value is the worth of amount in current time that is expected to be receive in some future…

Q: Suppose Allison purchases a condominium and secures a loan of P13,400,000 for 30 years at an annual…

A: Loan amount (P) = P 13,400,000 Period = 30  Years Number of monthly payments (N) = 30*12 = 360…

Q: Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was…

A: The term "Amortization" refers to the process of repaying debt over time by making regular principal…

Q: Can you show me how this is done?   Ava Darling plans to buy a house in 10 years and needs $17,446…

A: The principle of present value implies that a sum of money today is worth more than a sum of money…

Q: a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the…

A: Given,  A = 8000 r = 12% nominal monthly rate = 12%/12 = 1% n = 10*12 = 120

Q: Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making…

A: Mortgages is a loan contract used by persons to buy capital assets such as house on debt. Mortgages…

Q: Marry are buying her first house for $220,000, and are paying $30,000 as a down payment. You have…

A: Please refer to the image below.

Q: Assume Ron and his wife Julie, two young professionals, just bought a house for $600,000. They made…

A: A mortgage refers to a covered loan borrowed for the purchase or maintenance of a property with the…

Q: A couple buys a $180000 home, making a down payment of 20%. The couple finances the purchase with a…

A: The monthly payment that the couple will make will remain fixed or the same throughout the loan…

Q: your wealthy great aunt is going to help you finance the purchase of your first condo. She will lend…

A: Present value is the current value of an upcoming financial asset or cash flow, assuming a certain…

Q: Jane agrees to buy a car for a down payment of $8000 and payments of $360 per month for 9 years. If…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: 6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 Archie…

A: Interest is the periodic obligation of the borrower to pay towards the sum borrowed. The monthly…

Q: PART B.) George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) many…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Your brother-in-law asks you to lend him $225000.00 as a second mortgage on his vacation home. He…

A: A mortgage refers to a covered loan borrowed for the purchase or maintenance of a property with the…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.