Friend #3 – Home Mortgage Payment – I found my dream house in St. Paul but I am not sure I can afford it? I have the $15,000 for the down payment but it is the monthly payments that I am not sure about? What will my monthly payments be? Selling price: $215,000 Down payment: $15,000 Loan: 30-year $200,000 loan at 6%

Q: Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to…

A: When you take out a home mortgage from a bank then you pay same monthly amount each month over the…

Q: Nellie wants to buy a $1,110,000.00 house. She makes a $140,000.00 down payment and takes out a…

A: Monthly payment refers to an amount paid at each month for the repayment of loan amount including…

Q: Good news! Louie has been approved for a 25-year mortgage with an 8% interest rate for the dollar…

A: Mortgage payments refer to the monthly payments made for the amount borrowed as a secured loan.…

Q: O =FV(0.0525/12,12 15,-87500) 12x15 .0525 = 875000 (1+ 12 12x15 .0525 87500 12 0.0525 x 15 x 12 x…

A: mortgage amount =87500 interest rate =5.25 monthly interest =5.25/12 Period =15 years.

Q: Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to…

A: Mortgage amount (M) = $450000 r = 3.25% per annum = 0.2708% per month n = 25 years = 300 months Let…

Q: The mortgage on your new home is $195,856. The loan is at 6.5% interest for 30 years. How many…

A: Present Value (PV) of loan amount = $195,856Annual interest rate = 6.5%Monthly rate (r) = 6.5% / 12…

Q: You've decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…

A: Mortgage Payment: It is the payment of mortgage amortization paid by the borrower to the lender.…

Q: You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

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

Q: Consider a borrower who purchased a $300,000 home using conventional conforming financing at 90%…

A: Mortgage insurance refers to the protection of the lender from the possibility of defaulting on…

Q: You are buying a house and will borrow $205,000 on a 30-year fixed rate mortgage with monthly…

A: Here,loan amount $                  205,000.00Time period of loan in years30Interest Rate of…

Q: Find the monthly house payment necessary to amortize the following loan. $60,000 at 6.00% for 30…

A:

Q: Ann wants to buy a building. The asking price is $7,500,000. Her lender has a maximum LTV…

A: LTV means Loan To Value ratio. It is the maximum amount of loan that can be borrowed against the…

Q: 4 How much should you invest today at A% to accumulate $X in Y years? $930,000 31 years 12% X= Y= A=…

A: As per the guidelines, the solution to the first question is given below. For obtaining an answer to…

Q: Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to…

A: Mortgage Amount  $       4,50,000.00 Interest Rate 3.75% Compounding Factor 12 Time Period 25

Q: Friend #1 – Car Loan – What will by my monthly payment if I purchase a used car for $8,500? The…

A: Car Loan Loan Amount = $8500 Number of years = 4 Number of months = 4*12 =48 Annual interest rate =…

Q: Dr. Genius buys a house for $1,000,000 on a 30 year loan at 2.5% APR.    Dr Ridiculous buys a…

A: Formula for calculating monthly Mortgage Payment = P [ i (1+i)n ] / (1+i)n-1 where, P = Principal…

Q: The cost to purchase the house that Bainters are considering is $195, 000, but the Bainters plan to…

A: Given, Purchase Cost= $195000 Down Payment=$40000 Amount=$195000-$40000 =$155000 Interest Rate=4.2%…

Q: You are looking to buy a $350,000 home Your household has a combined income of $97,000 The…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Tom wishes to purchase a property that's been valued at $370,000. He has 20% of this amount…

A: A loan is a type of financial agreement whereby a lender gives a borrower access to funds in…

Q: Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year, Interest Only…

A: Loans are to be paid by the monthly payment that carry the payment of interest and payment for…

Q: Use the Buying a Car information above to answer this question. The rebate offer is $3500, and you…

A: Calculation of the monthly payment if the rebate is chosen and secure a loan for the balance at the…

Q: In the Excel Payment Function file that follows, you are looking to see what your basic mortgage…

A: When you make monthly payments for a loan the quantum of each monthly payment is same for the…

Q: You need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend…

A: Here,LoanAmount is $210,000Affordable Monthly Payment is $950Tenure of Loan is 240 monthsAPR is 6.1%

Q: ents deo Policie ources ct 3 You want to purchase a nome costing the mortgage interest rate is 4%…

A: Variables in the question:Loan amount=$150000Interest rate=4% (assumed compounded monthly)N=30…

Q: 5 Margo paid $A per month for B years to pay off a mortgage on her house. If her down payment was $C…

A: If the current cost or purchase price of the asset or property is to be computed and other…

Q: Nellie wants to buy a $509,000.00 house. She makes a $120,000.00 down payment and takes out a…

A: Formulas for all parts are :   a.) Principal of mortgage = Purchase price  -  Down paymentb.) Total…

Q: B bhupatbhai

A: The objective of this question is to calculate the amount of principal that will be repaid on a…

Q: A couple has a $129,000, 20-year mortgage at 7.2% compounded monthly. (a) Find the monthly payment.…

A: Monthly payment amount is calculated using following equation Periodic payment = i*A1-11+in Where, i…

Q: You have just been approved for a 30 year 5.5% fixed home mortgage. The monthly payment that you…

A: There is no down payment is made for the home. The present value of mortgage loan will be the price…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.