new house for $ 120,000. He was able to make a down payment equal to 25% of the value of the house; the balance was mortgaged. The rate by the bank is 10% compounded annually. The mortgage has a 20 year amortiz

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: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: K Franklin's new snowmobile cost $13,000. After his down payment of $1,000, he financed the…

A: A loan is an agreement where one party provides the other party with an amount that is to be repaid…

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: Payoff amount refers to the amount which is required to be paid as principal amount of the loan. The…

Q: Martha Diaz needs an investment loan. She gets a simple interest amortized loan for $12,000 at 8.5 %…

A: Interest is the cost of borrowing the money.

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Purchase Price = 930,000 Down Payment = 930,000*30% = 279,000 Loan Amount = Purchase Price - Down…

Q: Georgia applied for a home mortgage of 75,000 to finance the purchase of a new home for 30 years.…

A: Loan amount (PV) = 75,000 Annual interest rate (r) = 14% Number of annual payment (n) = 30

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A: Loans are contracts between two parties where one party forwards the money to the other on the…

Q: semiannual payments over the next 9 years.

A: Amortization is an accounting method that lowers the book value of the loan or intangible asset…

Q: Paul borrowed $500000 from the bank for mortgage. The interest rate is 7.8% compounded monthly. a.…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Mia Sato purchased a new condominium for $225,000.  The bank required a $40,000 down payment.…

A: We need to use mortgage amortization formula below to calculate monthly payment of mortgage.PMT…

Q: Mia Sato purchased a new condominium for $225,000.  The bank required a $40,000 down payment.…

A: The first step is to determine the amount of the loan. This is done by subtracting the down payment…

Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

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: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: Martin is buying a house for $325,000 and he has 15% for a down payment. Find the monthly payment…

A: Given:  Price of house = $325,000  Down payment = 15%  Interest rate = 5.75%  Term =30 years    The…

Q: Theo wants to take out a loan. He takes out a loan for 15000 dollars at 3,7% quarterly interest,…

A: Given information,Loan amount: Interest rate: Payment per period: Total years: To calculate,Amount…

Q: Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the…

A: Loan amortization refers to the process of paying off a loan over time through regular payments that…

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A: Amortization of a loan refers to the regular and equal repayment of the loan and interest over the…

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Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…

A: Installment amount is the amount of periodic payments a borrower has to make to its lender in order…

Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: You purchase a home for $350 000. At the time of purchase you make a downpayment of $75 000. The…

A: Loan amount (L) = $350000 - $75000 = $275000 n = 25 years = 300 months Interest rate = 4.3%…

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: John Lloyd and Izan want to buy a $138,000 home. They plan to pay 20% as a down payment, and take…

A: Price of house  $ 1,38,000.00 Down payment 20% Interest rate 4.15% Time period 30 years To…

Q: John wants to borrow 75,800 from a bank payable in 3 years and 9 months. if the bank charges 9.5%…

A: Note:  It is assumed that the loan is given on a simple interest rate basis. Simple Interest refers…

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Cost = $930000 downpayment = 30%*$930000 = $279000 Loan = $930000-$279000 = $651000 Monthly interest…

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A: Amortized loan include a series of equal timely instalments paid at the end of each time interval.…

Q: The Leonardo Family's got $500,000 mortgage has an amortization period of 25 years. Let's assume…

A: Mortgage refers to the amount borrowed against the purchase of the real estate. Amortization of the…

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: A mortgage is a loan that is taken out with the intent to purchase a property. The property in…

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out…

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To…

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 borrowed $300,000 to build a home by taking out a 30 year loan that has an interest rate of 12%.…

A: Present Value = pv = $300,000Time = t = 30 YearsInterest Rate = r = 12%

Q: Jason Bradley has been paying on his 10-year mortgage loan and is excited to be making the final…

A: Loan amount (PV) = $ 128000 Interest rate = 5.8% Monthly interest rate (r) = 5.8%/12 =…

Q: Find the monthly payment for each loan below. Remember to assume monthly compounding. 11. Sean and…

A: The value for the mortgage would be determined when a person has taken some loan and some periodic…

Q: Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was…

A: The term "Amortization" refers to the process of repaying debt over time by making regular principal…

Q: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…

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

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: How much would Doug save in interest if he amortized his mortgage over 15 years, rather than 25…

A: An amortized loan is a type of loan that is repaid in regular fixed installments over a specified…

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.