A student can afford to spend no more 150 e per month on a loan to pay his college fees. If the interest rate is 2% annually and the mortgage is 5 years, what is the maximum amount that the student can afford to borrow?

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Q: How much would she pay per month if she is to repay the loan in two years

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Q: Stafford loans are the most popular formof student loan in the United States. The current interest…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You borrow $8000 to help pay your college expenses. You agree to repay the loan at the end of 6…

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Q: A young couple decide to take advantage the current first-time home buyer credit and buy a new…

A: A mortgage loan is generally taken to purchase or maintain real estate. The borrower pays the lender…

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

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Q: You can afford monthly payments of $700. If current mortgage rates are 2.82% for a 15-year fixed…

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Q: A student graduates from college with 48000 in student loans with a 5.5% annual simple interest…

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Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

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Q: A student graduates from college with $31,000 in student loans with a 5.6% annual simple interest…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in equal…

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

A: Future value of annuity is computed as follows:-FV = A*whereFV= future value of annuityA= periodic…

Q: Kent owes $38000 with an interest rate of 4% in the student loans. If the loan will be paid after 2…

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Q: Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the…

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Q: A person borrows $390 that he must repay in a lump sum no more than 10 years from now. The interest…

A: Loan amount = $ 390 Annual interest rate = 9.9%

Q: Jonathon wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

A: Computation as follows: Therefore, the payment amount and total interests are $286.18 per month and…

Q: The annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to…

A: Maximum amount to borrow = Remaining balance for monthly payments/ current mortgage rate

Q: norigage has 21 years left, and has an APR of 8.707% Withn montniy payments of $1,449. at is the…

A: The mortgage loans are to be paid by the monthly payments and these monthly payments carry the…

Q: When you graduate from college, you apply for and are offered a job that pays $1,900 per month. You…

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Q: When applying for a mortgage, find one that allows you to contribute more money than the required…

A: given, loan amount =$152,700 no of year =30 interest rate =3.89%

Q: estion (a) Your brother has asked you to help him with choosing an investment. He invest today for a…

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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…

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Q: Create an Amortization schedule-see amortization video. How much student debt will I bear by the…

A: The Loan amortization refers to the systematic equal payment of loan and interest spread over a…

Q: f you borrows $60,000 from the bank at 10% interest over the 7 years of the loan. • What equal…

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Q: Jonathan wishes to buy a used chevy malibu for $12,500. He only has $1,000 for a down payment so th…

A: a) Value of chevy malibu = $12,500 Down payment =$1,000 Loan Amount =$12,500 -$1,000 Loan amount…

Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…

A: Non-Subsidized Student Loan per year = $11,000 Time Period of Non-Subsidized Student Loan = 4 Years…

Q: A young married couple decide to take advantage the current first-time home buyer credit and buy a…

A: The maximum amount that can be borrowed is the present value of annuity.

Q: In order to start a small​ business, a student takes out a simple interest loan for ​$3000 for 9…

A: Simple interest loan is based on the concept of simple interest. Here the interest amount is…

Q: A homeowner is looking to buy a home in Marvin Gardens. The most he can afford to pay in total is…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: (a) Compute the​ family's monthly mortgage payment under this loan. ​(b) How much interest will the…

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Q: Todd Foley is applying for a $290,000 mortgage. He can get a $2,030 monthly payment for principal…

A: Calculation of number of months:Excel spreadsheet for calculation of number of months

Q: Todd is able to pay $360 a month for 6 years to finance a car purchase.  a. If the interest rate is…

A: Per month payment=$360Number of months=6×12=72Rate per month=6% compounded monthly

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Stafford loans are the most popular form of student loan in the United States. The current interest…

A: Loan amount = $29,000Interest rate = 4.34%Number of years = 4 years

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.