how much must he put down? (Round your answer to the nearest cent.)

Q: Suppose you buy a home and finance $275,000 at $2,273.17 per month for 30 years. What is the amount…

A: Interest amount refers to an amount that is being charged on the amount that is being financed by…

Q: Mr. James is going to buy a car for $12,000. He can finance with the car dealer for 3 years at 12%…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: PMT function gives the payment for the loan for the constant payment and the constant rate of…

Q: What is your monthly loan payment? What is your expected balance after five years (60 months)?

A: Purchase Price64900Down Payments10000Loan Amount54900No.of Payments84Monthly Rate0.0033Monthly…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: Suppose you are buying your first home for $210,000, and you have $15,000 for your down payment. You…

A: An arrangement between a borrower and a mortgage lender known as a mortgage, also known as a…

Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is…

A: The present value of money is the discounted value of future cash flows. The future value is the…

Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A friend asks to borrow $53.00 from you and in return will pay you $56.00 in one year. If your bank…

A: Present value refers to the discounted value of future cash flows.future value is the compounded…

Q: You are buying a new home, and you have negotiated a 15-year mortgage loan with a local bank for an…

A: Annuity refers to the equal amount of payment made. In this case the monthly payments for loan…

Q: . Suppose you have a bank account into which you make $100 deposits each month. You find a bank…

A: Periodic Payment = $100 Future Value = $2,000 Time Period = 15 Months

Q: A woman went to the Beneficial Loan Company and borrowed ST0,000. She must pay $323.53 At the end of…

A: Monthly interest rate can be calculated by excel formula PMT and by IRR formula with series of cash…

Q: Suppose you buy a home and finance $285,000 at $2,243.17 per month for 30 years. What is the amount…

A: A person often takes a loan when buying large ticket items like a home or a car.The loan has to be…

Q: 4. a. Now assuming that a bank offers you a 30-year loan at 3.25% compounded monthly to pay the…

A: Mortgage means the amount which is borrowed from external sources like banks. This amount is repaid…

Q: Solve the following problems. Round your results to the nearest cent as needed. You need a loan to…

A: P = $24,200 (loan amount),(monthly interest rate),n=6×12 (number of months in 6 years).

Q: se you recently bought a house for R1 650 000 and secured a home loan from the bank, with an…

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

Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: Suppose your gross monthly income is $5,200 and your current monthly payments are $425. If the bank…

A:

Q: 1. Nelson wants to buy a car that costs $42,000. He has arranged to borrow the total purchase price…

A: Using the PMT function in excel

Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5.1% interest. How…

A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…

Q: If you want to buy a car, and you can afford a monthly payment of $425, how large of a loan can you…

A: Using excel PV function to get the loan amount

Q: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…

A: A down payment is an early stage payment made for a particular good purchased through financing.

Q: Alex would like to purchase a new car for $15,000. How much will his monthly payments be if he took…

A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: Pls help on ur own.Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at…

A: Present value refers to the value of all future cash flows which are discounted at interest rate or…

Q: Suppose you take a loan of $25,000 for a car for 4 years. The interest rate is 7.5% percent,…

A: Amortization refers to systematic and regular repayment of loan and interest amount during the…

Q: You are planning on buying a new car. You need to finance $32,500 for the purchase. The bank will…

A: Present value of annuity is computed by following formula:-PV = A*wherePV = Present value of…

Q: A man buys a house for a $245,000. He pays $70,000 down and takes out a mortgage at 5.1% for 25…

A: Given: The cost of house = $245,000 Down payment on house = $70,000 Mortgage rate = 5.1% Time period…

Q: You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs…

A: correct answer is option a)   year 0 year 1 year 2 year 3 year 4 year 5               cash…

Q: suppose Tim is buying a new car. He agreed to a price of $21,000 and he has $3,500 for a down…

A: Price of car = $21,000 Down Payment = $3,500 Time Period = 6 Years Interest rate = 3.6%

Q: A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for…

A: (a) The amount borrowed by this person : Amount borrowed= $8000/(1.12) = 7142.85 (b) Credit Worth…

Q: Emily is buying a new table for $1400. The dealer is charging her an annual interest rate of 10.8%.…

A: The loan amount is $1400 with an annual interest of 10.8% for 36 months. we will calculate the…

Q: Give typing answer with explanation and conclusion you want to borrow $71,400 from your local bank…

A: The idea of the time value of money (TVM) holds that a quantity of currency is valuable currently…

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.