number of periods) You've just bought a new flat-screen TV for $2,800 and the store you bought it from offers to let you finance the entire purchase at an annual rate of nt compounded monthly. If you take the financing and make monthly payments of $90, how long will it take to pay off the loan? How much will you pay in interest over the loan?

Q: You take out a 28-year mortgage loan for $757000. The annual interest rate of the loan that you pay…

A: Mortgage loan is a type of loan where a person puts his asset on Collateral to the lender to get a…

Q: You need a 30 year fixed rate mortgage to buy a new home for $400,000. Your mortgage bank will lend…

A: Mortgage/ Borrowings Borrowings are the loan which is taken by the individual to meet its financial…

Q: Suppose you lend ​$11,500 to a friend at an APR of 10.00​%. Your friend will pay you back beginning…

A: The periodic payment can be made monthly, quarterly, semi-annually or annually. Periodic payment is…

Q: ou can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30…

A: When we make a mortgage payment we pay fixed monthly amounts as payments towards the mortgage.…

Q: You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the…

A: A mortgage is a type of loan used to purchase a property or real estate. The borrower (homebuyer)…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

Q: You want to buy a $260,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: a) Loan Amount = Total price of house - Down payment  = 260,000 - (260,000 * 5%) = 260,000 - 13,000…

Q: You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over…

A: Given: Loan Amount $10,000Annual Nominal Interest Rate 9%Number of Payments = 5 years * 12 months60…

Q: You want to purchase a house valued at $200,000.  After a downpayment, you can finance the house…

A: Value of the house = $200,000 Number of years of mortgage = 20 Number of periods (n) = 20*12 = 240…

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: The monthly loan payment can be calculated by using the excel formula ''=PMT''Effective Annual Rate…

Q: You have two monthly car payments of $400 each left on your car. If the interest rate is 0.75…

A: Monthly Payment (PMT) = $400Monthly interest rate (r) = 0.75% or 0.0075Number of periods (n) = 2…

Q: You want to buy a $230,500 home. You plan to pay 20% as a down payment, and take ou 5% for the rest.…

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

Q: ut an $8,000 car loan that calls for 7 annual payments of $2,400 each.  What is the interest rate?

A: Annual payments are made for payment of loan which carry the interest and payment of principal…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: The loan is an agreement between two parties where an amount is forwarded on a promise of repayment…

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: a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: You take out a 14-year personal loan for $13000 at rate of 8.1% which compounds 4 times per year.…

A: A loan refers to a contract where a borrower is provided money by the lender on the promise of…

Q: You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: A loan is a facility provided by a lender to the borrower under which the borrower can take a lump…

Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%…

A: The number of months to stay will be around 6 months.

Q: A payday lender might lend you $350 now, and you'll be asked to pay them back when your paycheck…

A: A payday loan is a high-risk loan given for a short period of time on the promise that it will be…

Q: You want to buy a $214,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: a) Mortgage amount = Cost of home - Down payment  Monthly payments are calculated using excel PMT…

Q: You are buying vehicle for $20,000 and are paying $2,000 as a down payment. You have negotiated a…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…

Q: you want to buy a car and a local bank will lend you 15000. the loan will be fully amortized over 5…

A: Compound = n = Monthly = 12Present Value = pv = 15,000Time = t = 5 * 12 = 60Interest Rate = r = 10 /…

Q: ou will usually have choices of interest rates and loan term when seeking a loan. For the following,…

A: We take loans to buy large ticket and expensive items like a house or a car.The loan is paid off in…

Q: You have saved $6,946 for a down payment on a new car. The monthly payment you can afford is $495.…

A: Down Payment = $6,946Monthly Payment (PMT) = $495Number of compounding periods (n) = 48…

Q: You buy a car costing $28,000 today. What will be the monthly payment on this car if you put no…

A: The present value of monthly repayment will be equal to the value of loan amount. Monthly interest…

Q: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: Monthly payment "PMT" = $1300 Number of years = 30 Number of months "NPER" = 30*12 = 360 Annual rate…

Q: Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week…

A: Payday loans are one way of getting an immediate loan without much credit score or legal…

Q: ou are negotiating to buy a new car with a car salesman at a local dealer. You have negotiated the…

A: In this question , we will be calculating monthly payment on car loan at 7% APR with monthly…

Q: You can afford monthly payments of $800. If current mortgage rates are 3.06% for a 15-year fixed…

A: A mortgage refers to a covered loan borrowed to purchase a property with the property itself acting…

Q: You want to buy a $205,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Home value = $205,000 Down payment = 0.10 (10%) Monthly interest rate (r) = 0.00345833333333333…

Q: You want to buy a new car. You can afford payments of $200 per month and can borrow the money at an…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

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.