Chris can afford to pay $2,250 per month for a mortgage to buy a home. The bank will charge him 6.75% for a 30 year loan. How much can Chris borrow to buy a home? Multiple Choice $28,636 $2,613,298 $346,902 $810,000

Q: Anna is buying a house that is selling for $265,000. To obtain a mortgage, she is required to make a…

A: Mortgage refers to amount of loan for purchase of house, land or real estate. The working is shown…

Q: Q. Jayden borrows $10500 from his grandmother for 4 years. Jayden’s grandmother gives Jayden a…

A: While calculating future value using simple interest, the amount of simple interest is only based on…

Q: You want to borrow $500 from your cousin Vinny. He gives you the special family rate of 1% per week.…

A: APR = Weekly rate * Number of weeks EAR = [ 1 + Weekly rate ]52 - 1

Q: Theo just financed a new car through his credit union.  His car loan requires payments of $420 a…

A: A car loan is a type of personal loan specifically designed for purchasing a vehicle. It is a…

Q: Someone offers an investment opportunity that will pay you $725 at the end o next 17 years. How much…

A: Maximum value is the present value of cash flow from the annuity based on the time value of money…

Q: Q1: An engineering graduate plans to buy a home. She has been advised that her monthly house and…

A: Monthly income refers to the amount earned by a person in a month after paying all the expenses…

Q: If Megan has $35,000 in student loans and wants to pay them by extending her loan out to 20 yrs…

A: While education loans are very common now days due to high cost of education and these loans are…

Q: Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 6.3% and a…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: r. What is the annual loan payment Dan must make?

A: The loan payment is an amount that a borrower pays the bank during the term of the loan. It includes…

Q: You are considering the purchase of a new car. You can afford a payment of $400 per month. You plan…

A: In the given problem we are considering to buy a new car and we want to know how much money we can…

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A: Compound = monthly = 12 Monthly payment = p = $2500 Interest rate = r = 4.5 / 12 = 0.375% Time = t =…

Q: I purchase a BMW for $70,000. If I receive a trade in allowance of $5,000 for my old car. what will…

A: Given: Purchase price of BMW = $70000 Old car trade = $5000

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A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

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A: Formulas:

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

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A: Loans are paid by equal fixed monthly payments that carry the payment for interest and loan both.

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A:

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A: Amount he can afford to borrow is present value of monthly payments

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Q: Mark deposits $900 at the end of each month in a savings account earning 4.5% quarterly. How soon…

A: Future value refers to the future value of the cash flows that are compounded over a given period of…

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A: GDSR is the Gross debt service ratio. The maximum GDSR should not exceed 32%. Annual property tax…

Q: 32. You get a $550,000 mortgage loan with 14 points. What dollar amount do you pay for points?

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A: In this we have to calculate maximum monthly mortgage payment possible based on GDS and TDS ratio.

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A: Purchase Price of Car = 24750 Two loan options evaluated below

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A: Future Value The value of an asset at a future date is its future value. The present value is…

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A: The objective of the question is to calculate the amount of money Emma's friend will owe her after…

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.