6) You buy a $400,000 house. The loan is for 25 years and is at 4.5% monthly. What is the monthly payment? A) what is the balance after 10 years? b) what is the equity after 10 years?

Q: Suppose you take out a 30 year mortgage for $ 200000 at 8.5% interest. The monthly payments on this…

A: Here,

Q: You buy a $150,000 house and pay $30,000 down. The loan is for 30 years and is at 4.5% monthly with…

A: When an interest rate is given with points, the points is an addition fees on loan amount to secure…

Q: You decide to buy a house costing $5,000,000. You pay $1,000,000 down, and the remainder will be…

A: A home equity loan is a loan provided against the equity of a property. The equity value at any…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: You borrow $235,000; the annual loan payments are $31,351.50 for 30 years. What interest rate are…

A: Given information: Loan amount borrowed is $235,000 Annual loan payment is $31,351.50 Number of…

Q: You want to take out a $179,000 mortgage (home loan). The interest rate on the loan is 4.1 %, and…

A: After making payments for 15 years, you will still owe approximately $116,143 on your mortgage.…

Q: You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be…

A: Here, Value of House is $6,000,000 Down Payment is $1,000,000 Therefore, Loan Amount (PV) is:…

Q: You are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly…

A: Loans are paid by equal fixed periodic payments that carry the payment of interest and also payment…

Q: You borrow $110,000; the annual loan payments are $16,753.02 for 30 years. What interest rate are…

A: Borrowed amount = $110,000Annual loan payment = $16,753.02Number of years = 30 years

Q: How much money was your existing mortgage loan for? suppose that 10 years ago you bought a home for…

A: Given information: Mortgage bought for $150,000 Down payment is 10% Interest rate is 9% Number of…

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: You buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly. What is…

A: Interest: it is a finance cost that charged on borrowed value for specific period.

Q: You borrow $175,000; the annual loan payments are $10,120.27 for 30 years. What interest rate are…

A: Interest on a loan is the additional amount of money that a borrower has to pay back to the lender…

Q: 11) You buy a $550,000 house and pay $200,000 down. The loan is for 25 years and is at 4% monthly…

A: Mortgage is a value which is borrowed from other sources like bank and repay this amount later with…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest :  It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: A mortgage is a property loan given by banks to their customers for purchasing a house or other real…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: 19. You borrow $1,500,000 to purchase a small apartment building. The lender charges you a 2%…

A: Present value of annuity Annuity is a series of equal payment at equal interval. With annuity (PMT),…

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: The entire amount needed to fully satisfy a debt or other financial obligation is called the payoff…

Q: What is the effective annual rate on the loan? (i.e., what is the interest rate once we take into…

A: Information Provided: Amount Borrowed = $400,000 Term = 30 years Fixed APR = 3.87%

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: If Blitzen wants to buy a $150,000 house. Blitzen is going to pay $60,000 down and make monthly…

A: When a property is finance with loan, bank charges processing fees which is on the finance amount…

Q: Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest. a)…

A: Fresent value is an estimate of the future cash flows ​​that may be received at a future date,…

Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 9% interest. a)…

A: Compound = Monthly = 12Future Value = fv = $800,000Time = t = 25 * 12 = 300Interest Rate = r = 9 /…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: You are buying a house for $120,000.00 with a downpayment of $12,000.00. The loan will be paid back…

A: An amortized loan refers to a type of loan that is repaid over a set period through regular…

Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How…

A: An annuity is a series of equal payments made at regular intervals. It accumulates interest on a…

Q: You borrow $250,000; the annual loan payments are $35,700.70 for 30 years. What interest rate are…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Suppose you take out a 30 year mortgage for $ 200000 at 7.75% interest. The monthly payments on this…

A: Time period with the new monthly payments and given loan amount and interest rate is calculated by…

Q: a. How much is the monthly loan repayment amount? b. If you double your loan repayment each month…

A: The amount borrowed from any financial institution or an individual is known as loan. Borrower needs…

Q: You just took out a 15-year traditional fixed-rate mortgage for $300,000 to buy a house. The…

A: Mortgage amortization:Mortgage amortization is a structured repayment process for home loans that…

Q: You buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly.  What is…

A: Monthly payments of loan can be calculated by Equated monthly instalment formula which is derived…

Q: Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: You want to borrow $30,000. For the loan to you must repay $1100 every quarter (4 times per year)…

A: Borrowed amount = $30,000Quarterly payment = $1,100Number of years = 8 yearsAmount at the end of 8th…

Q: How much would you still owe at the end of the first year, after you have made the first payment?

A: Step 1:We have to calculate the amount still owed after 1st year. For this, we calculate the yearly…

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.