Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term, ar Lender B will give her 3.2% for a 20-year loan. Excluding taxes, insurance and all other charges, find t amount of the loan payment for each. Round your answer to the nearest whole dollar.

Q: The do Kari is purchasing a home for $220,0 payment is 25% and the balance will be finance with a 15…

A: Closing cost is defined as the processing fees which the person pay to the lender when the person…

Q: years. The interest rate is i(12) = 8.750%. What is the outstanding balance on the loan just after…

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

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Closing cost = Remaining down payment + closing expenses + discount points

Q: Karen obtained a $20,000 loan at 4% compounded semiannually. a-1. What monthly payment will repay…

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

Q: Caridad borrowed $18,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: Borrowed amount is $18,500 Ordinary interest rate is 11% for 160 days Partial payment made at…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: > Given data:> Calculation of  APR as follows below:> APR = ((Amount paid / Loan amount ) /…

Q: Lauren and Serena each have 59-week loans. At the end of their terms, they each repay $3,800.…

A: The major difference between a simple interest rate & a compound rate is that the interest…

Q: and financed the balance with an installment loan for 48 months. It payments are $43.50 per month,…

A: in this we to calculate present value FACTOR and than find out period required.

Q: Bea Fehr requires a personal loan to purchase appliances that cost S5000. She meets with the loan…

A: Cost of Equipment is  $5,000 Time period of loan is 3 years Interest rate of Institution- A is 934%…

Q: Susan has a 25-year home mortgage of $211,340 at 4.75% interest and will pay $1,874 annual insurance…

A: monthly PITI payment consists of monthly mortgage,insurance and Tax.

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

A: Using excel pmt function

Q: Aiyana took a $72,000 loan at 2.83% compounded monthly and decided to make of month payments of…

A: A loan refers to a contract between a borrower and a lender where money is forwarded on the promise…

Q: Karen obtained a $36,000 loan at 3.5% compounded semiannually. a-1. What monthly payment will repay…

A: Here, Loan amount = $36,000 Interest rate = 3.5% compounded semi-annually Time = 8.5 years To Find:…

Q: You are a first-time homeowner and know you will only prequalify for an FHA loan. Your monthly gross…

A: Recurring debt refers to a type of financial obligation that occurs regularly and requires periodic…

Q: Dan buys a property for $280,000. He is offered a 25-year loan by the bank, at an interest rate of…

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Dagmar has a 4-year car loan at an annual interest rate of 7.5%. She has made 26 payments of…

A: Total number of payment over the entire duration of loan = Number of years×Number of months in a…

Q: Angelica Riordan received a four year non-subsidized student loan of $15,000 at an annual interest…

A: Equated monthly payments It is a monthly fixed payment given by the borrower to the lender on the…

Q: Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second mortgage loan against…

A: A mortgage is a covered loan taken to purchase a property with the property itself acting as…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Every two weeks, Betty makes a $287 payment toward a car loan whose annual rate is 4.5%. If she will…

A: Here, ParticularsValuesBi-weekly payment (PMT) $ 287.00Interest rate4.50%Number of years4.00Number…

Q: o help open up a jewelry store, Kaitlin borrowed money from her credit union. She took out a…

A: Time value of money is used to calculate the monthly instalments, rate of interest, total amount to…

Q: Caridad borrowed $17,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: The final amount is computed by adding the loan amount and interest due and then subtracting the…

Q: Karen obtained a $25,000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay…

A: The present value concept is useful for borrowers to assess the affordability of a loan. By…

Q: Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as…

A: Loan:A loan is an amount of money given by one party typically a financial institution to another…

Q: Heather McIntosh recently purchased a home for $175,000. She put $22,500 down and took out a 25-year…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: the amount financed the finance charge The deferred payment price.

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

Q: Determine how much is her maximum loanable amount using the Fixed obligation to income ratio. Show…

A: First let us list the formula to calculate the Fixed Obligation to Income Ratio.FOIR = Loan…

Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…

Q: Sara borrows 35,000 at 12% for 9 months on a discounted loan. A. How much is the interest on the…

A: In a discounted loan, the borrower does not make any interest payments. He receives the loan at a…

Q: A Hepplewhite sofa costs $3,200 in cash. Jaquanna Wilson will purchase the sofa in 24 monthly…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: An accountant purchases a T-bill with a face value of $4,000 for $3,955. If the term of the T-bill…

A: Treasury bills, often referred to as T-bills, are short-term debt securities issued by a government,…

Q: Luis paid off a loan by making a payment of $4,050, which included simple interest of 3% p.a. If he…

A: Payment amount after 6 months (FV)= $ 4050 Annual interest rate (R) = 3% Period  (T) = 6 Months =…

Q: Find the closing costs (in $).

A: Closing Cost: It is  settlement costs. It is the fees  which  is paid  when obtaining  loan and…

Q: Mindy takes out a 4-year loan of $5000 at an annual rate of discount of 5%. How much does she…

A: Present value is a financial concept that helps calculate the present value of money to be received…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Purchase price of home = $260,000 Down payment = 25%*$260,000 = $65,000 Loan amount = Price of home…

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.