Dick Hercher bought a home in Homewood, Illinois, for $230,000. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is: Multiple Choice $327,372.80 None of these $184,000.00 $242,144.00

Q: What is the difference in interest cost if he had obtained a mortgage rate of 5 1/2 %

A: First we need to determine the loan amount. This can be determined with the formula below:In the…

Q: Munawar is a first time buyer and bought a brand new townhouse in Oshawa for $212 000. He has saved…

A: The main concept of the question is to calculate the maximum initial mortgage balance for Munawar, a…

Q: 1.    Jason Bradley bought a new split-level home for $158,000 with 30% down. He decided  to use…

A: Loan:   A loan is defined as the lending of money by one or more persons, organizations, or other…

Q: narvia purchased a used roadster with a $15,000 three -year loan at 6%. Her monthly payments are…

A: Here,Loan Amount is $15,000Interest Rate (r) is 6%Time Period (n) is 3 yearsMonthly Payment (PMT) is…

Q: Kelly is looking at a $312,820 home. To avoid private mortgage insurance (PMI), she put 20% down and…

A: Given: Particulars Amount Cost of home $312,820 Down payment 20% Interest rate 6.41%…

Q: Mike Jones bought a new split-level home for $150,000 with 20% down. He decided to use Quicken Loans…

A: Present value of annuity is computed as follows:-PV= A*wherePV= Present value of annuityA= annuityr=…

Q: X and Y own a home recently appraised for $317,400. The balance on their existing mortgage is…

A: Appraised value = $317,400Existing mortgage value = $214,074Bank Rate =  70%

Q: Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts,…

A: 1. What is the principal (loan) = cost of home -down payment…

Q: Wally Bee purchased a new home for $500,000 with a $80,000 down payment. He financed the remainder…

A: Interest is generally calculated on unpaid loan  amount. In this question person W paid a sum of…

Q: Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment.…

A: Total Present Value = $225,000 Down payment = $30,000 Present Value of Loan = $195,000 Annual…

Q: Loretta Scholten bought a home for $210,000 with a down payment of $30,000. Her rate of interest is…

A: Given: Total amount = $210000 Down payment = $30000 Rate of interest = 6%

Q: Five years ago, the Pandeys purchased a house and took out a mortgage of $900,000 from the BMO bank.…

A: Ordinary annuity is the PMTs which are made at the end of the period.

Q: Question 7 of 16 Erin purchased a house for $375,000. He made a downpayment of 20% of the value of…

A: Purchased a house - $375,000 Downpayment - 20% of the value of the house Mortgage for the rest of…

Q: Ransford and Alda Mariano own a home recently appraised for $422,500. The balance on their existing…

A: People and organizations use home loans to purchase land without following through on the whole buy…

Q: Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25…

A: Total Present Value = $160,000 Down payment = $30,000 Present Value of Loan = $130,000 Annual…

Q: The Engs just purchased a home in Port Moody for $1,200,000. They made a down payment of 30% and…

A: Solution- Ordinary annuity is the PMT which are made at the end of the period.

Q: None

A: To calculate the interest paid in the third year of the mortgage, first need to calculate the…

Q: Larry Mager purchased a ski lodge in Telluride for $850,000. His bank is willing to finance 70% of…

A: Purchase price = $850,000 Finance percentage = 70% Discount points = 4 1/4 or 17/4

Q: Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7%…

A: Homes and other real properties are purchased by the business entities with the help of taking the…

Q: Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Here, Particulars Values Price of a house   $ 110,000.00 Down payment (20%*$110,000)  $…

Q: The Gooseberry family purchase a $257,000 house and must sell their old home in order to make a 20…

A: A bridge loan is a short-term financing option used as interim financing until a person or company…

Q: Ephrem bought a home in Des Moines, lowa, for $335,000. He put down 15% and obtained a mortgage for…

A: The time value of money is related to the change in the worth of the money with time. It says that…

Q: Jason Bradley decided to buy a home for $271,000. His bank requires a 25% down payment. His…

A: Given: Particulars Amount Cost of house $271,000 Down payment 25% Recording of the deed…

Q: Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from the BMO…

A: rate positively . EAR =   (1+2.79%/2)^2-12.81%      APR (monthly compounding)…

Q: Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using…

A: Total Present Value = $225,000 Down payment = 20% EMI = P x r x [(1+r)n / (1+r)n - 1]

Q: er $24,000 in points. On September 1 of the current year, the Devons refinanced their $650,000…

A: The Income Tax Return (ITR) is a form that must be filed with India's Income Tax Department. It…

Q: Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. What…

A: Total Present Value = $160,000 Down payment = 20% Present Value of Loan = $160,000 - 20% = $128,000…

Q: Joe Levi bought a home in Arlington, Texas, for $128,000. He put down 30% and obtained a mortgage…

A: A mortgage is a loan on a property in which the property itself is used as collateral.

Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: Required information [The following information applies to the questions displayed below.] On…

A: Answer:- The amount of money spent by a business for borrowed cash is known as an interest…

Q: Heather recently purchased a $650,000.00 house in Barrie, Ontario. She puts a 25% down deposit and…

A: A fixed rate mortgage is a type of mortgage in which interest rate does not vary and remains…

Q: Sally purchased a home in Georgia for $167,500. She took out a mortgage for 80% of the purchase…

A: Prepaid Interest Expenses is that Expenses which is paid in advance before the Expenses due it will…

Q: Larry Mager purchased a ski lodge in Telluride for $850,000. His bank is willing to finance 70% of…

A: Mortgage is a value which is borrowed from other sources like banks according to the need. Repayment…

Q: None

A: The first homeowner with the fixed rate mortgage paid less in interest over the 10 years.Here's…

Q: Yara owns a home that was recently appraised for $183,000. The balance on the existing mortgage is…

A: To find out this solution we need to find the loan to value ratio(LTV). LTV ratio measures the…

Q: Stephen just purchased a home for $151,500. A morgage company has approved his loan ‘application for…

A: Given information: Cost of home : $151,500 Down payment : 25% Rate : 5%

Q: Ken just purchased new furniture for his house at a cost of $15,800. The loan calls for weekly…

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

Q: Ben Brown bought a home for \$225.000 . He put down 20\% The mortgage is at 6 1 2 \% 30 years .…

A: Installment is the amount of periodic payments that the lender has to pay to the borrower to pay…

Q: Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment.…

A: Using excel PMT function

Q: Ransford and Alda Mariano own a home recently appraised for $422,500. The balance on their existing…

A: Firstly we will calculate loan for which bank is willing to give on appraised value :   Loan…

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.