23. Dina decided to purchase a P1,500,000 house and lot. After deducting the down payment, the mortgage amount is P1,000,000. If the interest is at 10% compounded monthly, how much is the monthly installment if they plan to amortize the loan in 25 years? A. P9,000.25 B. P9,031.25 C. P9,051.25 D. P9,061.25

Q: Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%,…

A: The objective of the question is to calculate the Effective Annual Interest Rate (EAR) and the…

Q: What would the monthly payment be? It is a zero amortizing loan

A: Given  Pv=300000*75%=225000 i=6%/12=0.5% n=30*12=360 Pv=pmt*(1-(1+i)^-n)/i

Q: Vipula De Silva has just bought a boat by taking an unconventional 13 year, $82,884 mortgage from…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: 4. J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000 mortgage on which his is…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: 3. A family bus a house for $300,000. They pay 15% down and the rest is amortized with a 30-year…

A: Cost of house = $300,000 Down payment = 15% Time period = 30 years  Interest = 5.3% (compounded…

Q: EX29. Suppose that Peter needs a 30-year mortgage loan from a local bank finance his new house. The…

A: Loan amortization refers to the systematic and equally distributed repayment of loan and its…

Q: You are buying your first condo for $250, 000 and you will make a $50, 000 down payment. You have…

A: Loan amount = Purchase price - Down paymentMonthly interest rate = Nominal interest rate / Number of…

Q: ng two repayment plans for a and the debt is due in full at once. Offer 2 is to pay until the loan…

A: Loan=PV=$20000Loan payment=PMT=$4000Interest rate=r=15%

Q: The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of 6.65%.…

A: Here,Loan Amount is $350,000Interest Rate is 6.65%

Q: You want to buy a house and will need to borrow $175.000 The interest rate on your loan is 4.93…

A: PMT is often used in financial formulae relating to loans, mortgages, annuities, and other financial…

Q: Mr. Andi bought a machine and agreed to a loan of Rp. 1,000,000.00 which can be paid in installments…

A: a) When the payment is made today for a loan of 1,000,000, the annuity amount to be paid can be…

Q: house is for sale for $250,000. You have a with monthly payments: (1) if you make a do loan with a…

A: By taking into account the impacts of compounding interest, the Effective Annual Rate (EAR) is a…

Q: Mike just bought a house for $1.3m. He paid $300k as a down-payment and the rest of the cost has…

A: 1) Calculation of monthly payment: Loan value = House cost - Down…

Q: You purchase a home for $436,000 by making a down payment of 15% and financing the remaining amount…

A: Particulars Amount ($) a Value of House 436000   Less:    b Down Payment @15% 65400 c…

Q: Say that you purchase a house for $206,000 by getting a mortgage for $185,000 and paying a $21,000…

A: House Cost =  $206,000 Down Payment = $21,000 Mortgage Amount = $185,000 Time Period = 25 Years…

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: O a. $1,054,602.46 b. $1,044,056.44 c. $970,234.27 d. $1,022,964.39 O e. $991,326.31

A: First, we need to calculate the bi-weekly payment amount. We know the mortgage amount, the interest…

Q: QUESTION 1 A man buys a house for $360,000 He makes a $150.000 down payment and amortizes the rest…

A: It is a case where a house is purchased using a downpayment as well as a loan is taken up to cover…

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: 13. Mortgage payments Mortgages, loans taken to purchase a property, involve regular payments at…

A: Present value of annuity formula.PV  =  A  *  where,PV = present value of annuityA = periodic…

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: 3. BMO administers a mortgage on someone's house. That mortgage obligates the homeowner to pay…

A: The objective of the question is to find the present value of the mortgage and the interest rate…

Q: 34. Amy & Ben are purchasing a house for $290 000. They make a 10% down payment and mortgage the…

A: Monthly payment The minimum amount that is being required to paid by an individual each month.

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: You have purchased a home for $515000 by paying a down payment of 18% and then refinancing the…

A: Homes are purchased by the mortgage loans by paying small down payments and rest is paid by the…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: None

A: To create an amortization table and answer the questions based on the provided mortgage details,…

Q: 21. You buy a house for $400,000. You pay off the loan with monthly payments over 30 years at a…

A: Time has been precious in all perspectives, however in terms of finance; the time has a monetary…

Q: A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: NOTES The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man…

A: Using excel PMT function to calculate each payment

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: If I purchase a home for $150,000. I do a fixed 30-year mortgage at 6%. I have to put down 10% or…

A: Monthly payment = Loan Amount/Annuity factor Annuity factor = (1 - (1+r)^(-n) )/r r = monthly…

Q: In order to solve this question, would I use the compounded monthly formula and then subtract the…

A: We will do it in following steps:First we will find out what should be the monthly mortgage payment…

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.