9. NEW ROOF Roy Gerard needs $7260 to pay for a new roof on his small home. His bank loans him money at a discount rate of 12%, and the loan is for 240 days. Find the face value of the loan so he will have $7260.

Q: The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and…

A: Mortgages are a sort of loan that can be used to buy or keep up a house, land, or another piece of…

Q: Maya will buy a new pair of skis for $850.00.  She has $400.00 in her savings account.  Her parents…

A: Principal Amount: It is the initial amount that is to be repaid at the end of the period for which…

Q: Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Bob wants to save $20,000 to buy a new car in 4 years without obtaining a loan. He knows he can…

A: The amount required to invest today can be calculated with the help of present value function.

Q: Stephen has just purchased a home for $162,000. A mortgage company has approved his loan application…

A: Buying a house is a once in a life step. Most of the people buying a house do not have enough cash…

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Ken wants to remodel his basement and he wants to pay back no more than $18,000. If he gets a low…

A: Given Information, Payment made after 3 years =$18,000 Interest rate =0.0375/2=0.01875(As the period…

Q: None

A: Net Present Value (NPV) is a financial metric that calculates the difference between the present…

Q: The McDaniel family is purchasing a home, and their mortgage. The home costs $156,000 and they have…

A: First we need to use loanbsp;loan amotorization formula below to calculate monthly payment.  where…

Q: Ms. Lanz takes out a $9,000 loan to buy a used car for her daughter. She gets a 4-year loan at 8.75%…

A: We can calculate the total repayment of the loan by adding the interest amount and principal amount…

Q: Mary has saved enough money to make a $10,000 down payment on a $3 finance the purchase with an auto…

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

Q: Ursula wants to buy a $21,000 used car. She has savings of​ $2,000 plus an​ $800 trade-in. She wants…

A: The monthly payment is the payment that includes the principal amount as well as interest amount and…

Q: Patrick Cantlay just purchased a home for $500,000. His mortgage is a 30-year mortgage, that…

A: Mortgage loans are secured loans in which a home is collateral and are paid in equal monthly…

Q: Michelle borrows $7, 200 from her father to buy a used car. She repays him after 9 months, at an…

A: Total amount she repays at the end is calculated using following equation Total amount = P×1+rt…

Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

A: Mortgage loans are given on the basis of monthly income and other expenses related to the housing…

Q: 1. You purchased two condos for $100,000 cash down, with loan and insurance payments of $1,500 3…

A: The downpayment on the condos: The downpayment of $100,000 has already been paid in full and will…

Q: Before-tax cost of debt and after-tax cost of debt David Abbot is buying a new house, and he is…

A: a. We need to use the following formula in excel to calculate before tax interest rate  Before tax…

Q: Payments of Ordinary Annuities Ryan wants to get together $40 000 to purchase the first house in his…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: John is looking for a new car. He has a down payment of $1,750.00 and wants to pay $300.00 per month…

A: A loan refers to a contract where money is borrowed by one party on the promise of future repayment…

Q: 7. Mark Hohman has decided that it is time to buy a new car. He has found his dream car for $25,502…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: 4) Brenda is buying a living room set for her home. At Furniture, Inc., she picks out a set for a…

A: With an installment loan, the borrower receives a fixed amount of money and repays it over a…

Q: 6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000.…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Tom needs a car to commute to work and has found a suitable Honda Civic from a dealer for $8000. He…

A: Total is the amount of down payment and amount total paid in monthly payments that include payment…

Q: What is the total payback amount of the loan? What is the amount of each payment? /month What is the…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: 6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 Archie…

A: Interest is the periodic obligation of the borrower to pay towards the sum borrowed. The monthly…

Q: Melanie bought a used car for $10,000. (S) he put $100 down and financed the balance with the dealer…

A: The add-on interest is a method of calculation of interest where the interest is added first and the…