3. Cindy took out a 30 – year mortgage of 188,000 at a rate of 6%, convertible quarterly. She makes monthly payments for 7 and a half years, then refinances the loan at 5% effective for 15 years. Calculate her new monthly payment amount after refinancing. (A) 1309 (B) 1326 (C) 1375 (D) 1405 (E) 1444

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A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Q: Rosetta has a mortgage of $328,000 through her bank for property purchased. The loan is repaid by…

A: Amortization refers to the systematic and periodic repayment of interest and principal over a given…

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A: It is assumed that the mortgage is obtained after making a downpayment of 10% of the purchase amount…

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A: Any sum borrowed to meet any specific personal or business needs is regarded as a mortgage/loan. The…

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Q: A friend of yours borrows $19,500 from the bank at 8% annually to be repaid in 10 equal annual…

A: Accumulated interest paid:Accumulated interest paid is the comprehensive sum of interest accrued and…

Q: 9. Jared will repay a mortgage over 25 years. This table shows 2 of the Раyment number payments.…

A: Equated Monthly Payment or EMI is a fixed amount paid every month by the borrower. It includes both…

Q: Amir has obtained a $250,000 mortgage. The mortgage is amortized over 25 years and the term of the…

A: Mortgage refers to the long-term loan that is taken by the individual to purchase residential…

Q: nna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 20%…

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Q: 3. Joe Burrow loans Kenyan Drake $400,000. Burrow accepts a 5% note, which requires quarterly…

A: Bonds are a representation of a promise to pay interest, typically every two years, and to repay the…

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Q: Anna has a mortgage of $427,000 through her bank for property purchased. The loan is repaid by end…

A: A mortgage refers to a covered loan that is used to purchase a property with the property itself…

Q: Mr. Nezir refinances his existing mortgage (30 years, $ 275,000, 4.00% interest) at 2.00% interest…

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Q: Jasmin has a mortgage of $296,000 through her bank for property purchased. The loan is repaid by end…

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A:

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A: Annuity = a = $1300 Time = t = 26 years Interest rate = r = 8%

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A: People take loan or mortgage for buying a house. The loan is repaid by making fixed monthly…

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.