Nellie wants to buy a $1,110,000.00 house. She makes a $140,000.00 down payment and takes out a 25-year mortgage to pay for the rest. Her monthly mortgage payment is $4,350.00. a) What is the principal of her mortgage? Principal $1 ab Vasin b) How much interest will she pay over the life of her loan? π aº Total interest $ 6 c) How much will she pay in total for her house? Preview

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: 3) Jennifer buys a $300,000 house and pays $100,000 down. The loan is for 30 years and is at 4%…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Anna is buying a house that is selling for $265,000. To obtain a mortgage, she is required to make a…

A: Mortgage refers to amount of loan for purchase of house, land or real estate. The working is shown…

Q: Tomás bought a house with a mortgage of $328,300. The mortgage is being finance interest rate of…

A: loans are paid by the monthly payments and these payments carry the payment of loa amount and…

Q: Vipula De Silva has just bought a boat by taking an unconventional 13 year, $82,884 mortgage from…

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

Q: 5. Erin borrowed $200,000 fixed-rate 30-yr mortgage when mortgage rate was 4.5%. How much total…

A: Amortization refers to the systematic and regular repayment of loan and interest spread over the…

Q: 4. J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000 mortgage on which his is…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Chelsea and Bill are buying a house on a 30-year mortgage.  They can afford a $1200 per month…

A: Using excel PV function, to calculate purchase price of a house

Q: Sandra gets a $250,000, 30 year mortgage with annual payments of 4.0% rate.  What is the balance of…

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

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

A: Amortization refers to the regular and equal repayment of loan amount spread over the period of time…

Q: Barbara and Jerry can afford a mortgage payment of $1, 500 per month. If interest rates are 3.25%…

A: Mortgage payment = $1500Interest rate = 3.25%Maturity = 30 YearsTo find: Amount to borrow.

Q: Larry and his wife Cuke have a mortgage of $200,000 at a rate of 3.25 % (annual) for 30 years. How…

A: Amortization of loan refers to the regular and equal repayments of the loan along with the interest…

Q: Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for…

A: Loan amount (P) = $589,000 Monthly interest rate (r) = 0.0025 (i.e. 0.03 / 12) Monthly period of…

Q: How much does she still owe when there is 1 year left on the loan?

A: Interest is charged by the lender on the amount of loan taken. At the initiation of loan repayment,…

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

A: Loans are paid by the monthly payments and these are equal monthly installments and these carry the…

Q: 15 years ago, Tammy borrowed $350,000 to buy a house. She has a 30 year, 10% fixed rate mortgage.…

A: Mortgage is a secured loan and in this home is collateral and this is paid by equal monthly…

Q: Your are in need of cash and turn to your cousin, who offered to lend you some money. You decide to…

A: The rate of interest charged by the cousin is calculated using the following equationWhere, FV is…

Q: A woman buys a house for $265,000. She pays $70,000 down and takes out a mortgage at 6.6% on the…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: What house value can Betty afford? Betty's annual income is $90,000 and she has monthly credit…

A: Here, To Find: Value of the house =?

Q: 1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make…

A: Cost of the house is $200,000. $40,000 will be paid as down payment and remaining amount will be…

Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

A: Loan Amount = 400,000 Time Period = 20 years or 240 months Rate = 4.5% Continuous Compounding

Q: 14. Francisco Lindor borrows $73,000 at 12 percent interest toward the purchase of a mortgage is for…

A: Annual payments are periodic fixed payments that include the payment for interest and payment for…

Q: Jennifer buys a $300,000 house and pays $100,000 down. The loan is for 30 years and is at 4%…

A: Monthly payments is calculated by present value of annuity formula. r is interest rate and n is…

Q: Deborah can't decide whether she wants to buy and car or lease a car. She is looking at a $48,000…

A: Given, The loan amount is $48,000 rate is 3.95% Term is 3 years

Q: Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid…

A: Given: Years = 30 Fixed interest rate = 5% Cost = $450,000 Down payment = 20%

Q: . Ji-Hoon wants to get a $500,000 3% 30-year mortgage in order to buy his first home. How much…

A: Loan amount (PV) = $500,000 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 30…

Q: Jamal is building his first residence and has saved $15,000 that will be used as his down payment.…

A: Total Cost of House and Land = 150,000 Current Savings = 15,000 Cost of Mortgage Indemnity Insurance…

Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

A: Mortgage loans are given on the basis of monthly income and other expenses related to the housing…

Q: Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4%…

A: Monthly payments is calculated by EMI formula i.e. present value of annuity formula. For calculation…

Q: Bridgette can afford to make monthly payments of $800 towards a mortgage, and wants to fully own her…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Jason is buying a home with a $150,000 mortgage using a 6 percent, 15-year loan. How much of the…

A: Loan amortization schedule represents the amount of periodic payments composed of the interest…

Q: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Calculate the monthly payment as follows: Monthly payment is $1527.73.

Q: 6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000.…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: If I purchase a home for $150,000. I do a fixed 30-year mortgage at 6%. I have to put down 10% or…

A: Monthly payment = Loan Amount/Annuity factor Annuity factor = (1 - (1+r)^(-n) )/r r = monthly…

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.