A truck costing $119,000 is paid off in monthly installments over four years with 6.2​% APR. After three years the owner wishes to sell the truck. What is the closest amount from the following list that he needs to pay on his loan before he can sell the​ truck?   A. $45,589   B. $26,051   C. $32,564   D. $39,077

Q: A pottery factory purchases a continuous belt conveyor kiln for $64,000. A 7.2% APR loan with…

A: The number of payment periods is calculated using NPER function in excel with loan amount as…

Q: A loan of $400,000 with 5% APR for 30 years with monthly payment plan was received for purchasing a…

A: Initial loan (L) = $400000 r = 5% per annum = 0.41667% per month n = 30 years = 360 months Let M be…

Q: A suburban lawn service bought 10 new mowers at $3500 each. The company made a $5000 down payment…

A: Loan is charged with interest for the period the amount is used at the given rate of interest.…

Q: Farmer Ty needs to finance a machinery purchase of $70,000. His lender requires a down payment of…

A: Loan installment is that amount which is paid every month/ every year depend upon the terms which is…

Q: Dave Krug finances a new automobile by paying $6,800 cash and agreeing to make 40 monthly payments…

A: Present value refers to the current date value of all future cash flows. The present value can be…

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

A: We will use present value of ordinary annuity formula to calculate size of quarterly payment.

Q: A home is purchased for $229,000 with an amortized loan over 30 years at an interest rate of 4.6%.…

A: Purchase price =                 2,29,000         Loan Tenure =  30 years       Interest rate =…

Q: You are purchasing a home for $150,000 at an 8% APR.  Your loan period is 360 months.  If your…

A: Given Cost of home is $150,000 APR is 8%Loan period is 360 Payment is $1,100.65

Q: What monthly payment will she be required to make if the car is financed over a period of 24 months?…

A: Loan Monthly Payments: These are payments made by the borrower to the lender for the purpose of…

Q: owner of a ski resort estimates that a new 4-person ski lift will cost $4,000.000. The owner begins…

A: Future value of the amount includes the amount being deposited and amount of compounding interest…

Q: Business loan The owner of a small business decides to fi- nance a new computer by borrowing $3000…

A: Borrowing = 3000 Time Period = 2 years ×12 = 24 Months  Interest Rate = 7.5%/12 = 0.625%

Q: John Fare purchased $24,000 worth of equipment by making a $4000 down payment and promising to pay…

A: We usually take loans to buy large ticket items like a machine, an equipment, a car or a house. The…

Q: You borrowed $30,200 to remodel your kitchen. The interest rate is of the loan is 8.2 percent,…

A: Compound = n = Monthly = 12Present Value = pv = $30,200Interest Rate = r = 8.2 / 12 %Monthly payment…

Q: Pool-N-Patio World needs to borrow $70,000 to increase its inventory for the upcoming summer season.…

A: Amortization of a loan refers to the process of paying off a debt over time, usually through a…

Q: a. How many payments are required to s-

A: A loan refers to the amount that should be taken by the borrower from the lender for a specific…

Q: The truck that we will use in our business costs $90,000. 10% of this cost will be paid as a down…

A: A loan amortization is used present monthly PMTs, interest repaid, and principal repaid.

Q: 1. Mary made a loan of P58,000 to supply her new business. It is to be amortized by ten equal…

A: We need to use RATE function in excel to calculate interest rate. Formula is =RATE(NPER,-PMT,PV)

Q: Curtis buys a piece of commercial property for $230,000 He is offered a 20-year loan by the bank at…

A: A mortgage refers to a covered loan that has been borrowed for the purchase of a property. The…

Q: The price of a home is $220,000. The bank requires a 20% down payment and one point at the time of…

A: Here, Price of Home is $220,000 Down Payment is 20% Closing Point is One Point i.e 1% of Loan Amount…

Q: The amount that is borrowed on your house mortgage was $175,000 dollars to be repayed through…

A: An annuity is a series of cash flows for a particular period. In this series, each cash flow…

Q: Compute the amount of monthly payment that must be made to pay off the loan and interest. Example of…

A: EMI is a fixed payment made by the borrower to the lender after every fixed interval of time, till…

Q: A house sells for $135,000 and a 25% down payment is made. A mortgage was secured at 2.8% for 20…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: You purchase a vehicle for $25,000 at an 8% APR.  Your loan term is 72 months.  After one year of…

A: Compute the monthly interest rate, using the equation as shown below: Monthly rate=Annual rate12…

Q: Find the monthly house payments necessary to amortize the following loan. What are the total…

A: Loans can be secured and unsecured. The loan is the amount borrower takes from the bank or financial…

Q: a. Find the balance owed after 5 years b. Determine the cost of the loan (interest). c. If an extra…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the…

A: The loan which is paid-off by making installment payments having two components as interest mount…

Q: A truck costing $118,000 is paid off in monthly installments over four years with 8.7​% APR. After…

A: A loan is a debt amount that must be repaid to the lender with interest thereon. The monthly…

Q: Corey buys 10 Tufflift 4-post, 4.5-ton car hoists for his parking garage at a total cost of…

A: Future value of amount formula:-FV = A * (1+r)nwhere,FV = future value of amountA = Amount…

Q: A new homeowner is purchasing a living room set for $2,590 and must decide between two financing…

A: Total cost refers to the total price paid by the buyer to acquire the commodity. If the commodity is…

Q: hase a used sports utility vehicle costing $30,000 by taking out a 9% add-on installment loan. The…

A: Answer : Cost of Vehicle = $30,000 Down payment = $30,000*15% = $4,500 Interest rate = 9% Time = 5…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.