15 years ago, Laura borrowed $424,000 to buy a house. She has a 30 year, 5. fixed rate mortgage. She made the 180th payment today. Payments are made monthly. Given that she can refinance at 2.4% p.a. with 15 year maturity, wha new monthly payment? 1741.85 1941.85 1641.85 1541.85

Q: What is the difference in interest cost if he had obtained a mortgage rate of 5 1/2 %

A: First we need to determine the loan amount. This can be determined with the formula below:In the…

Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Semi Annual Payment  $              1,500.00 Time Period (years) 8 Interest rate 4% Monthly…

Q: 10. Kristine has $5,000 in an account today that pays 3% interest rate. Two years from now she…

A: Note: As per the Bartleby guidelines, we can answer only the first question. Kindly post the…

Q: 5. Erin borrowed $200,000 fixed-rate 30-yr mortgage when mortgage rate was 4.5%. How much total…

A: Amortization refers to the systematic and regular repayment of loan and interest spread over the…

Q: Andrew Bolkonsky borrows $200,000 to purchase a house for investment purposes on January 1st 2006.…

A: The concept of present value states that a sum of money is worth today more than the same sum of…

Q: 8. Give your answers to this question correct to two decimal places. a. Andrew wants to buy a house…

A: Mortgage is a value which is borrowed from other sources like banks and this amount is repaid later…

Q: Tariq bought a commercial property valued at $71 000 for $26 000.00 down and a mortgage amortized…

A: Interest rate can be converted as follows,  Annually compounding rate = 6% Annual factor = 1+6% =…

Q: couple wishes to borrow money using the equity in their home for collateral. A loan company will…

A: Loans are paid by the equal and fixed monthly payments and these monthly payments carry the payment…

Q: In 1980 Isabella purchased a home at a price of $152,900. She made a 20% cash down payment and…

A: A mortgage refers to a loan borrowed to purchase a property. The property itself acts as collateral…

Q: Bob is going to pay his mortgage. He can afford $1,832 per month in rent for 24 years. The bank is…

A: Compound interest is a powerful financial concept that refers to the interest earned or charged not…

Q: An investor purchased a house 10 mortgage loan for $300,000. The m of 5 percent compounded monthly…

A:

Q: Donald and Barbara have 30-year $155,000 mortgage at 7.68% compounded monthly.     (a) What was…

A: Mortgaage loan = $155000 Time(n)              = 30 year interest (r)           = 7.68%p.a

Q: 15 years ago, Tammy borrowed $350,000 to buy a house. She has a 30 year, 10% fixed rate mortgage.…

A: Mortgage is a secured loan and in this home is collateral and this is paid by equal monthly…

Q: mortgage loan require you to pay $489.44 per month at 6% interest per annum. If you hold condo for…

A: Mortgage are secured loans against and are paid by equal monthly payments and these carry the…

Q: Elizabeth pays $294.50 for a car lease at the beginning of every month for 1 years and 8 months at…

A: The first part of the question is asking us to identify the type of annuity Elizabeth has for her…

Q: Robert has borrowed $339,000 to purchase a house in the current year at 5.5% interest rate, with a…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remain…

A: Loans are paid by equal fixed monthly payments that carry the payment for interest and loan both.

Q: Assume Jenny took out a $400,000 mortgage to pay for her new house. The mortgage rate is 5.7%. It is…

A: Information Provided: Mortgage amount = $400,000 Interest rate = 5.70% Period = 25 years

Q: Then Maria Acosta bought a car 2 years ago, she borrowed $17,000 for 48 months at 7.2% compounded…

A: Step 1 Present Value The total of future investment returns discounted at a given level of expected…

Q: (Annuity payments) Emily Morrison purchased a new house for $180,000. She paid $60,000 upfront and…

A: The present value of all future payments should be equal to the cost of house financed.

Q: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Calculate the monthly payment as follows: Monthly payment is $1527.73.

Q: Mr. and Mrs. Smith have taken out a mortgage loan of $150,000.00 from a bank at 6% APR for a fixed…

A: The monthly payment can be calculated with the help of present value of annuity function

Q: Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 6.5%. This…

A: The objective of the question is to calculate various aspects of a mortgage loan, including the…

Q: Your grandmother closed her bank account from a thrift bank and gotP6,000,000 with the 8% annual…

A: Total amount = 6,000,000Interest rate = 8%Years = 30To find: Annual deposits made by the…

Q: aa.2   Joe purchases a $100,000 home. Mortgage payments are to be made monthly for 30 years,…

A: The objective of this question is to calculate the total amount of interest paid over the duration…

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.