How much money will the bank loan you? How much can you offer for the house?

Q: You have just taken out a 30-year mortgage on your new home for $120,000. This mortgage is to be…

A: Use financial calculator:The present value of mortgage = 120,000The future value when all the loan…

Q: You receive a 10-year subsidized student loan of $22,000 at an annual interest rate of 4.3%. What…

A: Using excel PMT function to calculate monthly payment.

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: You are ready to buy a house and you have $75,000 for a down payment and closing costs. Closing…

A: Here, Amount for Down Payment and Closing Cost is $75,000 Closing Cost id 4.5% of Loan Value Annual…

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

Q: You borrow $500,000 from a bank to buy a $600,000 building. You amortize the loan (annually) over 25…

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

Q: You are ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing…

A: Mortgage loans are paid by equal and fixed monthly payment that carry the payment of interest and…

Q: You purchase a home for $434,000 by making a down payment of 15% and financing the remaining amount…

A: First we need to use loan amortgage formula below to calculate monthly payment.  where P=Loann…

Q: ou have secured a loan from your bank for two years to build your home. The terms of the loan are…

A: Working Note #1 Calculation of loan amount after 2 year period: Loan amount after 2 year period=…

Q: You purchase a cottage for $175,000. You obtain a 25-year, fixed-rate mortgage loan at 12.5% after…

A: A mortgage is a loan arrangement that allows a borrower to purchase a house or other real estate…

Q: You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: You owe $31,000 on student loans at an interest rate of 5.85% compounded monthly. You want to pay…

A: Information provided: Loan amount = $31000 Annual rate "r"= 5.85% Number of years "n" = 7 Number of…

Q: You want to take out a $179,000 mortgage (home loan). The interest rate on the loan is 4.1 %, and…

A: After making payments for 15 years, you will still owe approximately $116,143 on your mortgage.…

Q: You borrow $6,275 from your friend at a nominal interest annual rate of 11.35% compounded weekly.…

A: Loan = 6275 Interest = 11.35℅ Weekly Compounding Number of compounding periods = 52 Annual Repayment…

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: You are considering buying a house. The home is currently listed for $750,000. Terms for the loan…

A: To calculate the monthly mortgage payment, use the formula for a fixed-rate mortgage:Where:M =…

Q: You buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly. What is…

A: Interest: it is a finance cost that charged on borrowed value for specific period.

Q: You expect to graduate with $30,847 in student loans. The interest rate on your loan is 6.4 percent…

A:

Q: What is the annual percentage rate ( APR) of the loan?

A: The annual percentage rate is an annual interest rate used to represent the cost of borrowing. It…

Q: You receive a 10-year subsidized student loan of $29,000 at an annual interest rate of 4.8%. What…

A: Loan payments are given by, L = E(1-(1+r)^-n)/r Where, E = payment = ?? r = interest rate = 4.8%/12…

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: What must be your annual quoted rate (APR)? After paying the loan for 5 years, you’re allowed to pay…

A: The annual rate of interest for a loan, often referred to as the annual interest rate or annual…

Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…

Q: You are considering buying a house.  The home is currentlylisted for $750,000.  Terms for the loan…

A: The following is the excel formula used for the calculation:

Q: You have just taken out a $16,000 car loan with a 8% APR, compounded monthly. The loan is for five…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Midwest Bank is offering a 25-year mortgage with an APR of 6% based on monthly compounding. With…

A: A mortgage may be a sort of credit utilized to buy genuine bequest, ordinarily a domestic. It…

Q: You took out a 30 year mortgage of $300,000 for your new apartment. The APR for your loan is 3.5%.…

A: Mortgage period = 30 years Mortgage amount = $300,000 Interest rate = 3.5%

Q: After making payments of $901.10 for 6 years on your 30-year loan at 8.9%, you decide to sell your…

A: Monthly payment (C) = $901.10 Monthly interest rate (r) = 0.00741666666666667 (i.e. 0.089 / 12)…

Q: You purchase a home for $438,000 by making a down payment of 15% and financing the remaining amount…

A: Monthly payment refers to the amount that is being paid every month either in the beginning or end…

Q: r wants to buy a property for $375,000 and qualified for a 80 percent loan. A fixed-rate loan is…

A:

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: The objective of the question is to calculate the annual payment for a loan of $1,000,000 at an…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: mortgage value = n = 30 x 12 = 360

Q: You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing…

A: Excel formula.

Q: You plan to borrow $25,000 at a 3.4% annual interest rate compounded annually. The terms require you…

A: In case of amortization loan, equal payments at equal interval over the loan period are made. A…

Q: Suppose you make a down payment of 6% of $27,600 for a car and finance the rest at 1.5% compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: Mortgage period = 30 yearsPurchase price = $2,700,000Mortgage amount = 80% of purchase priceMonthly…

Q: What is the effective annual rate of interest on the additional 10% of house value borrowed on the…

A: Effective Annual Rate of Interest: It refers to the effective rate of the annual stated rate and…

Q: Suppose that you borrow $17,000 for five years at 6% toward the purchase of a car. Find the monthly…

A: Answer :Principal = $17000 Rate = 6% = 6/1200 = 0.005 Time = 5 * 12 = 60 months Payment per month =…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: You have a loan outstanding. It requires making seven annual payments of $6,000 each at the end of…

A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.