3. The most I can afford to pay for my mortgage paymentis $950 a month. The bank is offering a 20 yearmortgage with an APR of 4.3%. How expensive of ahouse can I afford?4. You want to buy a $20,000 car. The most you canafford is $450 a month. The bank offers 3 choices fora loan: 4 years with 7% APR, 5 year with 7.5% APR,or a 6 year loan with 8% APR. Which option bestserves your needs if you want to pay the least amountof interest?5. Suppose you have graduated from college and want topurchase a home. Your take-home salary is $4560 amonth, and you wish to stay within the recommendedguidelines for mortgage amounts by only spending %of your monthly take home pay on a house payment.You have $18,500 saved for a downpayment. Withgood credit, you can get a 15 year mortgage with a4.35% APR.a. What is the total cost of the house you couldafford?b. If this switched to a 30 year mortgage, what is themost you could afford to purchase?

Information Provided: Monthly payment = $950 Interest rate = 4.30% Period = 20 years NOTE: As…

Answered: 3. The most I can afford to pay for my…

3. The most I can afford to pay for my mortgage payment is $950 a month. The bank is offering a 20 year mortgage with an APR of 4.3%. How expensive of a house can I afford?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

You take out a 5-year car loan with monthly payments of $425. The interest rate for the loan is 4.75%. How much total interest will you pay over the life of the loan? Group of answer choices $1,575.06 $22,658.31 $25,500.00 $2,841.69
You will usually have choices of interest rates and loan term when seeking a loan. For the following, calculate the monthly payment and total interest over the loan term with each option.You need a $20,000 to buy a used car. Your bank offers a 3 year loan at 5%, a 4 year loan at 6%, and a 5 year loan at 7%.3 year loan at 5%: Monthly payment: $ Total: $ Total interest: $ 4 year loan at 6%: Monthly payment: $ Total: $ Total interest: $ 5 year loan at 7%: Monthly payment: $ Total: $ Total interest: $
I need help solving this on excel 9.You a buying a home for $425,000 and would like to determine the monthly mortgage payment. You can obtain a $340,000 30-year fixed-rate mortgage at 3.5%. What is your monthly payment?
You can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30 years.A. What is the largest loan can you afford? I can afford a loan of at most $________. B. How much total money will you pay the loan company? The total of all my payments will be $_______. C. How much of that money is interest? The amount of my total payments will be $_______.
You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the maximum principal you can borrow? $ b) Instead of a home, you decide to buy a duplex and rent out the other side for $500 a month. With this additional $500 added to your monthly payment, what is the maximum principal you can borrow? c) You buy a duplex for the amount of your answer in part (a), but apply the extra $500 to the mortgage (making your payment $1,500). How long does it take to pay off this loan in years? years
A person is looking at purchasing a house that is priced at $100,000. They plan on using a down payment of $25,000. The bank offers two different mortgages:option A: 3% APR for 20 yearsoption B: 2% APR for 25 yearsExplain which is the better option.
You take out a 14-year personal loan for $13000 at rate of 8.1% which compounds 4 times per year. After 1 years, you refinance the loan and get a 13-year loan at a rate of 6.48%. a) When you first get the loan, how much is your payment? $ 390.24 Correct b) Make a spreadsheet for your loan balance, interest, and payments. After 1 years of paying, how much do you owe? $ c) Adjust your spreadsheet for the new interest rate starting when you refinance in year 1. What is your new payment? $
You can afford a $300 per month car payment. You've found a 5 year loan at 7% interest. How big of a loan can you afford? Round your answer to the nearest cent.
3. You are purchasing a new home and need to borrow $325,000 from a mortgage lender. The mortgage lender quotes you a rate of 6.5% APR for a 30-year fixed rate mortgage (with payments made at the end of each month). The mortgage lender also tells you that if you are willing to pay one point, they can offer you a lower rate of 6.25% APR for a 30-year fixed rate mortgage. One point is equal to 1% of the loan value. So if you take the lower rate and pay the points, you will need to borrow an additional $3,250 to cover points you are paying the lender. Assuming that you do not intend to prepay your mortgage (pay off your mortgage early), are you better off paying the one point and borrowing at 6.25% APR or just taking out the loan at 6.5% without any points?
You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 4.65% interest for the rest. The bank will charge 1.5 points on the amount financed. year loan at a) What is the amount of the down payment? b) How much is the loan amount going be? c) What will be the amount charged for 1.5 points? 1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here
The Allen's want to purchase a house. They can afford $1,025 a month for 20 years and a $23,000 down payment. They finance the loan with an APR of 5.23% mortgage rate for 20 years. Determine the amount of the Allen's loan using TVM Solver on calculator. N= I%= PV= PMT= FV= P/Y= C/Y=
You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 5.7% interest.a) How big of a loan can you afford? (Round to the nearest cent, as needed.)b) How much total money will you pay the loan company? (Round to the nearest cent, as needed.)c) How much of that money is interest? (Round to the nearest cent, as needed.)