Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down payment was £5000 and the interest rate was 6 percent compounded monthly, what was the purchase price of the house?

Q: Nina buys a piece of lot for P30,000 down payment and 8 deferred semi-annual payments of P 5,000…

A: Annuity: A contract between you and another party known as an annuity obligates the borrower to pay…

Q: Yao currently acquired a mortgage to buy a house in Leamington Spa. This mortgage is for a value of…

A: We can use this formula to find out equal annual payment of loan amount    A = P*[…

Q: ack buys a a car from a chant who offers P 748,000.00 at the end of 5 years. Jack wishes to pay…

A: As per the honor code of Bartleby we are bound to give the answer of first three sub part, please…

Q: Diego is getting a mortgage for $320,000 at a rate of 4.5% for 30 years. What is his monthly payment…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: Carlo paid P 13,500 after two years to fully pay his loan that costs P 10,000. What is the interest…

A: Loan to be repaid on maturity = C* ( 1+i)n Where C is the amount of loan borrowed  i is the periodic…

Q: Sara purchased a three-bedroom, two-storey house for $209 000 with a 10% down payment. The mortgage…

A: The down payment refers to the money paid by the customer in the early stage of purchasing the…

Q: José borrowed 8100 at 5 1/2% for  three years compounded, semi am annually. What is the future…

A: Future value is the value of an investment or cash flow at a future point in time, based on the…

Q: Jake paid 100,000 pesos as down payment for a farm. The remaining amount is to be settled by paying…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…

A: Given:

Q: Benjamin borrows $50,000 from a lending institution for building a house. The lending institution…

A: The question is based on the concept of amortization of mortgage loans. A mortgage loan is paid back…

Q: Peter invests $1,000 dollars and hold it for five years. The interest rate is 10% compounded…

A: FUTURE VALUE  Future Value is the Value of Current Sum of Money in Future. Future Value is…

Q: Peter was receiving rental payments of $2,000 at the end of each month from his tenants of his…

A: A perpetuity is like an annuity in which cash flows are streamed for an indefinite period of time.…

Q: Nihal is borrowing Rs. 50,000 to buy ABC assets. If he pays equal installments for 25…

A: An asset can be purchased by outright cash payments or in installments. The installment amount…

Q: Carlos buys a house for 1,200,000 pesos. He makes a 20% down payment and the balance he takes a loan…

A: Solution: amount of loan = 1,200,000 * 80% = 960,000 Nos of monthly periods =15*12 = 180 Monthly…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: Reuben Mahlangu invests quarterly an amount of R50000 over four years at an interest rate of 2% per…

A: Future value:Future value is a financial concept that refers to the amount of money an investment…

Q: Jake is offered to purchase a perpetuity paying R1000 annually. The required rate of return is 15%.…

A: The price at indifferent to buying or not buying the investment would be R6,666.67…

Q: Ali buys an apartment for RM150,000. He makes a 10% down payment and finances the balance through…

A: Loan amount (L) = Price - Down payment = 90% of RM 150000 = RM 135000 Monthly payment (M) = RM…

Q: Your brother-in-law says you will pay him only 13 cents per day for each $200 borrowed. Assuming a…

A: Any sum borrowed from a bank, financial institution, or any acquaintance to fund personal or…

Q: Kiran has already saved $575,000 as a deposit for a new waterfront villa in the Hamptons. It will…

A: Monthly mortgage paymentA monthly mortgage payment is the regular amount of money you pay to a…

Q: Bill and Susan bought a home for $190,000 and made a 20% down payment. They got a fixed mortgage at…

A: Computation as follows: Hence, the monthly payment is $881.54.

Q: Fritz Benjamin buys a car costing $14200. He agrees to make payments at the end of each monthly…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: If money is compounded monthly at 6.42%, how much must she pay each month? Round off to two decimal…

A: Principal Amount of Loan = Total Amount - Down Payment Monthly Payment = P x r / [1 - {1 / (1 +…

Q: John paid $25,000 down on a new house and will pay $1000 per month for 30 years. If interest is 8%…

A: Selling Price of the House = Down Payment + Present Value of monthly payments Down Payment = $25000

Q: How much is the cash price of the car if Mrs Ocampo is to pay Php 21,000 monthly in 5 years? The…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Peter takes out a loan of R1000000 to start a new business. After 14 years his business grows and he…

A: In the given question, no details are given regarding re-payments i.e whether any monthly or annual…

Q: 8) An engineer received a bonus of $10,000. If he deposits it now at an interest rate of 8% per…

A: Let the money accumulate for n years. Bonus (B) = $10000 r = 8% Amount to be withdrawn after the…

Q: Khairul secured a bank loan of RM 180,000 to help the purchase of a house. The mortgage is to be…

A: A mortgage is a loan obtained to purchase a property, such as a house or a piece of land. The…

Q: Cindy and Rick purchased a home for $145,000 and financed it with a 30-year fixed-rate loan at 6.25%…

A: Introduction Mortgage Loan: A mortgage is a loan that a borrower takes out to buy or retain a house…

Q: Mrs. Lim's purchase contract for a house and lot specifies that she will pay $500,000 cash and…

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

Q: Tom will pay 10000 dollars to Monica 2 years from now. John wants to buy this debt from Monica. How…

A: Present value is the value of a future amount of money at the current time. It is based on the…

Q: 5. Hussein is purchasing a home for OMR200000. Me is making a 20% down payment and will sign a…

A: Given information The Purchase amount of Home = OMR 2,00,000 Down Payment = 20% ,Remaining Amount of…

Q: costs P500,400 cash. A purchaser will pay P100,000 cash, P50,000 at the end of 2 years and a…

A: In this we need to find out the present value of each and find the annual installment.

Q: All is expected to invest an amount of 50,000 AED per year from the end of his second year of…

A: First investment at end of year 2 Investment at end of year 2 = 50,000 Number of years for…

Q: Marcus bought a luxury car worth P2,000,000. He then decides to pay in a 6 year long installment…

A: Financing the purchase of certain high-priced products is a common practice of purchasers.…

Q: jason is considering purchasing a vehicle with a cash price of 75800. what is the annual interest…

A: Given in the question: Cash Price of the Vehicle = 75,800 The Jason has purchased the vehicle on…

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.