3. over a 30-year Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% term, Lender B will give her 3.29% for a 20-year loan. Excluding taxes, insurance and all other charges, amount of the loan payment for each. Round your answer to the nearest whole and find the dollar.

3. over a 30-year Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% term, Lender B will give her 3.29% for a 20-year loan. Excluding taxes, insurance and all other charges, amount of the loan payment for each. Round your answer to the nearest whole and find the dollar.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The…

A: Given FV = 1,000 Price = 870

Q: 2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a)…

A: here we calculate the future value and the effective interest rate of the following , so by using…

Q: Bill's mortgage balance is $70,000 with a 7% annual interest rate. His monthly payment is $465. What…

A: Given that; Mortgage balance =$70,000 Annual interest rate = 7% Monthly payment = $465 Monthly…

Q: Mary takes out a loan for $1000 at a simple interest rate of 5% for a period of 3 years. Calculate…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: If a lender makes a simple loan of $800 for 4 years and charges 3%,then the amount that the lender…

A: The objective of the first part of the question is to calculate the total amount that the lender…

Q: A 5-year bond with a yield of 6% (continuously compounded), with a face value of $100, pays an 3%…

A: Bond Price = C(1-(1+r)-n/r ) + F/(1+r)n Here, C = Coupon payment = 3 F = Face value = 100 r = 6% =…

Q: If a lender makes a simple loan of $400 for 5 years and charges 7%, then the amount that the lender…

A: The objective of the first part of the question is to calculate the total amount that the lender…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage. How much total will you pay back on…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable…

A: To find the percentage of interest paid on the loan, we need to calculate the total interest paid…

Q: You want to buy a $32,000 car. You can finance the car for 1.5% interest for 6 years. What is your…

A: The formula for monthly payment is calculated as follows: Monthly payment = Pr121+r12n1+r12n-1 where…

Q: Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments…

A: Monthly PITI (Principal, interest, tax , insurance) = monthly PI + Monthly tax + monthly insurance…

Q: You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 7% interest…

A: Given:- Mortgage payment amount=$1500 Time frame=30 Years Interest rate=7% Please find detailed…

Q: company buys a machine for $17,000, which it agrees to pay for in six equal annual payments,…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: Question list O Question 1 K Mary's credit card situation is out of control because she cannot…

Q: 6) Two annuitics in perpetuity have the same effective annual interest rate. The first annuity pays…

A: Given that; Two annuities in perpetuity have same effective annual interest rate. The first annuity…

Q: Mary Smith took out a loan of $75,000. The loan runs for five years at a minimum interest rate of…

A: here we calculate how much is each monthly payment to Mary Smith by following method given below

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given, Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: How can we calculate the effective interest rate, altering the period value?altering the period…

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: Showing your working out, compute the price of all four bonds: Face Value Maturity (years)…

A: The bond price is the present value of the future cash flow of the bond. Bond price = present value…

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly. What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: Helen borrows $1000. To repay the amount she makes 12 equal monthly payment of $93.12 1- determine…

A: When borrowing money, like in Helen's case, the repayment amount usually includes both the principal…

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

A: The payment is made semi-annually. Thus, the time period is 24 semi-annual (12 years) period.…

Q: Can you explain the meaning of a 20% annual percentage rate (APR) quotedby the credit card company?

A: Annual percentage rate (APR) applies to the interest rate charged annually to borrowers and billed…

Q: Does the compounding increases the amount of interest paid over a year atthe same nominal interest…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: Assume, you want to get $1,000 after 5 years. How much equal amount of money do you need to deposit…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: Consider a student loan of $12,500 at a fixed APR of 9% for 30 years. a. Calculate the monthly…

A: Given, Loan = $12,500 APR = 9% Time = 30 years

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

A: Given the below: Purchase price = $436,000 Interest rate = 2.12% compounded monthly or 2.12%/12 =…

Q: Find the interest rates in the following situations. a. APR = 7%, compounded monthly. Find the…

A: Here we calculate the Following interest rate by using the given information so the calculation of…

Question

3.
ood and most ancilsumammoss
ewans oy bouo Seszneuxa anauort at bofovab ed. asa emooni viridnomjorts
Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59%
Lender B will give her 3.29% for a 20-year loan. Excluding taxes,
amount of the loan payment for each. Round
goizuol ont of animosaA
to our worl 000 822
over a 30-year and
term,
all other charges,
find the
insurance and
your answer to the nearest whole dollar.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given

VIEW

Formula Used

VIEW

Calculation for Lender A

VIEW

Calculation for Lender B

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

1. Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate. The first payment is one year from the time of purchase. Mary reinvests each of the 20 payments, as soon as she received them at the end of each year, into a fund that earns 8% interest on deposits. What is the accumulated amount in Mary's fund right after the 20th annuity payment has been deposited into the fund?
You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment of $1,400 on day 36 (36 days after getting the loan). Calculate your balance after the $1,400 payment is applied.
6. An individual makes six annual deposits of $2,000 in a savings account that pays interest at a rate of 4% compounded annually. Two years after making the last deposit, the interest rate changes to 7% compounded annually. Ten years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?
A couple deposits $24,000 into an account earning 3% annual interest for 30 years. Calculate the future value of the investment if the interest is compounded quarterly. Round your answer to the nearest cent. Formulas
You have $10,000 to invest. Your bank offers the following 10 year CD's. Account 1 offers 6.85% simple interest. Account 2 offers 6.57% compounded annually. a. How much money will you have at the end of 10 years if Account 1 is chosen? s b. How much money will you have at the end of 10 years if Account 2 is chosen?S Account is the better choice.
2
Please answer only handwritten
Shelley purchased a home in Maryland Heights, MO, for $204,000. Her down payment was 20% of the cash price, and she obtained a mortgage for 20 years at 7%. What are Shelley's monthly payment and total interest cost? (Round your answers to the nearest cent.) Monthly payment Total interest cost