Greg borrows $881,000 to buy a house. His mortgage requireds 22 years of monthly payments, with the first payment due one month after the purchase date, and an annualized interest rate of 5.4%. If Greg decides to completely pay off the loan as soon as he makes payment #36, how much does he owe the bank? Assume he has made all payments on time leading up to this point. Enter your answer as a positive number, and round to the nearest dollar.

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: This question provides that the interest rate goes down to 5.50 per year from 6.0% per and it is…

Q: Adam purchases a house and gets a 20-year mortgage for $185,000 at 5.5% APR. In addition to the…

A: The objective of the question is to calculate the total monthly payment that Adam has to make to the…

Q: Tom borrowed $80,000 at a rate of 6.5% from bank for his new house. This is a 30 year monthly paid…

A: Given, Tom borrowed = $80,000 Rate= 6.5% Time period= 30 year

Q: Rob, a friend of yours, has recently purchased a home for $125,000, paying $25,000 down and the…

A: The objective of the question is to verify Rob's calculation that it will take over 67 years to pay…

Q: Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down…

A: Using Excel PMT function

Q: Alan loans $3750 to Betty at a 6.2% simple interest rate. Betty agrees to repay the loan after 13…

A: Simple rate of interest is calculated by multiplying the rate with principal and adjusting the same…

Q: Mason borrows $41,217.00 to buy a car. He will make monthly payments for 6 years. The car loan has…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

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: 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: Luan paid $110,900 as a down payment towards an apartment purchase and received a mortgage from a…

A: A mortgage is a covered loan that has been taken out to purchase real estate. The real estate being…

Q: Mr. Smith has borrowed $20,000 from the bank to start his small book-keeping business. He has…

A: Using excel RATE function

Q: Gary purchased a house and obtained a 30 - year loan of $250,000 at an annual interest rate of 6.75%…

A: Using excel PMT and PV function

Q: Dames has a mortgage of $88,500 at 4% for 20 years. The property taxes are $3,900 per year, and the…

A: Total monthly payment :— It is the sum of monthly mortgage payment and other monthly expenses.…

Q: Sven accumulated $10,500 in credit card debt. If the interest rate is 3.45% per year and he does not…

A: Compound interest can be defined as the addition of interest to the principal balance. It can be…

Q: Your brother is considering the purchase of a home rather than renewing the lease on his two-bedroom…

A: Monthly mortgage refers to an amount that is paid at every month for the repayment of total mortgage…

Q: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: James has a mortgage of $94,500 at 4% for 20 years. The property taxes are $3,900 per year, and the…

A: Given, Mortgage = $ 94500 Rate = 4% Time = 20 years = 240 Months Annual taxes = 3900 Insurance =…

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: Mortgage loans are paid in equal monthly installments that carry the payment for interest and…

Q: Johnny and Lucy have purchased a home for $365,000. They will need to obtain a mortgage for 85% of…

A: Loan amortization table shows the bifurcation of each monthly payment in the interest payment and…

Q: Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment…

A: It is a case where the amount of loan to be borrowed by Dolph is to be calculated, based on his…

Q: Michael Sanchez purchased a condominium for $83,000. He made a 20% down payment and financed the…

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

Q: When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25…

A: Loan amount (PV) = $315,700 Interest rate = 4.2% Monthly interest rate (r) = 4.2%/12 = 0.35% Period…

Q: Brad decides to purchase a $295,000$⁢house. He wants to finance the entire balance. He has received…

A: A loan is a type of financial agreement whereby a lender gives a borrower a certain amount of money,…

Q: Noel purchases a house and gets a 15-year mortgage for $155,000 at 4.75% APR. In addition to the…

A: Monthly payment refers to the amount that is paid by the borrower to the lender at the end of each…

Q: Tom Burke bought a home in Virginia for $160,000.  He puts down 25% and obtains a mortgage for 30…

A: Home cost = $160,000 Down payment = 25%*$160,000 = $40,000 Mortgage period = 30 years  Interest rate…

Q: To go on a school trip, Felipe borrows $700. He makes no payments until the end of 4 years, when he…

A: Future Value: A present asset's future value, abbreviated as FV, is the value that asset is expected…

Q: Anna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 10%…

A: Mortgage amortization is the process of gradually paying off a home loan over a specified period of…

Q: Ivan is looking to purchase a home that costs $ 160,000. The interest rate is currently at 3.7 %.…

A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…

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.