ose you de
Q: Use the following to solve questions a. and b. with excel A house with price of $250,000 20% down…
A: To solve these questions, we would typically use Excel's financial functions to calculate the total…
Q: Question 3 Suppose you have two inyestments with the same interest rate. One investment is a…
A: We will understand this with the help of an example:Suppose the Principal amount=10000Rate of…
Q: You want to buy a $199,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…
A: Formula; Loan amount = Home value * (1 - Down payment) Loan amount = $199,000 * (1 - 0.10) Loan…
Q: pu ract of land for $1 million and assumes a 25-year t 4.2% interest compounded monthly. a) What is…
A: In this we need to calculate monthly payment required.
Q: 1)You have taken out a loan of 3,000,000 to buy an apartment. The loan is an annuity loan of 30…
A: The loan is a facility provided by financial institution to buy an asset and repay it in future in…
Q: Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to…
A: Mortgage amount (M) = $450000 r = 3.25% per annum = 0.2708% per month n = 25 years = 300 months Let…
Q: None
A: Let's go through the calculations step-by-step: a) How much is the loan amount going to be?The price…
Q: Complete using manaul computation You have 20 years left for your retirement. You wish to…
A: The time value of money is a concept in finance that evaluates the worth of future expected cash…
Q: Time value Personal Finance Problem As part of your financial planning, you wish to purchase a new…
A: TVM refers to the concept where money earned earlier is considered more valuable than the same…
Q: 3. Amortization Schedule. Use Excel and calculator. You decide to buy a new BMW that costs $50,000.…
A: Amortization refers to the systematic and regular repayment of loan amount over a period of tenure…
Q: 3. To buy a computer, Tom borrowed P30,000 at 9% simple interest calculated yearly. If he will be…
A: Interest rate charged on the loan is a function of the demand of the funds and the supply of the…
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: Pacific Bank offers you a $150,000, 6-year term loan at 10 percent annual interest. What will your…
A: Present value of annuity = P * {1-[1/(1+r)^n]/r} Where, Present value of annuity =150000 n= 6 r =10%…
Q: You have decided to buy a house. The price will be $500,000 and you will put $50,000 down. Your…
A:
Q: Suppose you bought a house for 30,000,000 by paying 10% down payment. Make Amortization table by…
A: Note: If the question needs to be solved according to the first two conditions, as requested, an…
Q: Assume you have a student loan that you will pay off in 10 years. How much would you save an…
A: The question is related to refinancing the loan at lower interest rate which was originally financed…
Q: a. What was the correct amount of unrestricted net assets at the end of Year 2? b. What was the…
A: Financial Statement: A financial statement is the complete record of financial transactions that…
Q: Your parents are considering a $75,000,30-year mortgage to purchase a new home. The bank at which…
A: To find out which option is best, Lets calculate monthly payment of each option and total amount…
Q: A few years ago, you purchased a home for $98200. Today, the home is worth $108400. Your remaining…
A: Maximum amoun i can borrow is 80% of home's current value To Find: Maximum amount of cash i can…
Q: QUESTION 2 You would like to purchase a home and are interested to find out how much you can borrow.…
A: Compound = monthly = 12Monthly Payment = p = $2500Time = t = 30 * 12 = 360Interest rate = r = 6 / 12…
Q: uppose a homeowner has an existing mortgage loan with these terms: Remaining balance of $150,000,…
A: Mortgage loans are paid by monthly payments that carry the payment for interest and payment for loan…
Q: nterest , a company that you regularly do business with, gives you a $11,000 note. The note is due…
A:
Q: Due to both interest earnings and the fact that money put to good use should generate additional…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: You decide to provide yourself with a retirement account by depositing X into an account at the…
A: An immediate annuity is an ordinary annuity where the payments start immediately after being…
Q: You take a 60,000 car loan at 5% interest for 4 years. How much will your monthly payments be? (use…
A: EMI (Equated Monthly Installment) is referred to as an amount, which is payable each and every month…
Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…
A: Before making any calculation let us first arrange these cashflows into a cashflow time line chart.…
Q: Use the following to solve questions a. and b. with an excel spreadsheet A house with price of…
A: See the answer in the explanation field.Explanation:Answer information:Step 1:Provided:It is assumed…
Q: For the following problem, first choose A or B (Be sure to indicate which one you are using). Then…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: Find the monthly amortization for a loan of Mr. Frederick Dizon amounting to P750,000 to aid in four…
A: This is a case in which a loan is taken and then the payments are spread over a number of months.…
Q: None
A: To create an amortization table and answer the questions based on the provided mortgage details,…
Q: ont uplode any image in answer (Comprehensive problem) You would like to have $70,000 in 15…
A: Annual deposit required depends on the time and interest rate and these changes with change in…
Q: Your friend turned out to be dishonest and was looking to con you out of $4,902,714. After clearing…
A: Future Value of Annuity Due = P * [ (1+r)^n - 1 ] /r * (1+r) Where, P = Monthly Deposit r =rate…
Q: Time value Personal Finance Problem As part of your financial planning, you wish to purchase a new…
A: Future cost = Current cost x (1+i)^twherei = inflation ratet = timeCurrent cost =$20,000 (given)
Q: It's time to buy a car! You decide on a model with a price of $24, 850. Wi you can borrow the money…
A: Loans are paid by the monthly payment that carry the payment for interest and payment for principal…
Q: You want to buy a new ski boat 2 years from now, and you plan to save $7,300 per year, beginning one…
A: Futures are an important financial concept that represents the value of an investment or asset at a…
Q: You buy a house for $190000, and take out a 30-year mortgage at 7% interest. For simplicity, assume…
A: In a growing annuity, the periodic annuity amount may increase at a fixed rate. The present value of…
Q: o purchase a new equipment it is necessary to borrow $23000. The equipment dealer offers a 8-year…
A: Loans are paid by equal and annual payments and these annual payments carry the payment for interest…
Q: Assume you are able to put $8,000 in a savings account today that pays 6% interest compounded…
A: Deposit Amount is $8,000 Interest Rate is 6% Compounding Period for part-1 is Annual Compounding…
Q: You are trying to convince an investor into buying a rental apartment unit that fetches a rent of…
A: Present Value of Annuity: The present value of an annuity represents the present value of a future…
Q: You buy a house for $380000 and you take out a 30-year mortgage at 7% interest. For simplicity,…
A: The annual mortgage payment rate includes the yearly cost of borrowing money and is based on the…
Q: Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded…
A: Questions 19, 20, and 21 are all steps to arrive at the answer to the question using the appropriate…
Q: Assume you want to borrow $300,000 and have been presented with two options. The first option is a…
A: Here,Borrowed Amount $ 300,000.00Interest Rate of Fully Amortizing Loan3.00%Interest Rate of…
Amortization Revisit
Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments.
Answer the following questions about this loan.
After making 240 monthly payments, how much of what you paid the bank was interest?
$ . Round to the nearest cent.
Thanks@
Step by step
Solved in 2 steps with 2 images
- Saving Later Plan 2: Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). Using the assumptions above, write down your answer to each of the following questions: 19. Create the following table of values for this investment plan, Saving Later Plan 2, (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. P = A = t 3D M =Interest Rate? Problem 2 In 4 years, you plan to buy a new car and will need a down payment. How much would you need to invest today in order to have $8,000 in 4 years? Assume interest rates are 4%. Which table will you use for the above calculation? Number of periods? Factor? hapter What is the amount of investment? Problom 3 value of money and Бопа X A P Q S YManual Solving A man has a loan of 500,000 for 10 years at 6.5% annually with annual payments. His payments are 45,000 for the first 5 years and X for the next 5 years. Find X. Construct the amortization schedule for this loan.*
- If you could solve option 5 with the formulas please Option 5: Half the required money is taken out of an investment account that pays monthly interest at a 3% annual rate. The rest of the money is borrowed from a bank at a 4% annual interest rate, should payback within 3 years in equal monthly payments. Find the future value of the money taken from the investment account at the end of the shop development and periodic payments to the bank. Calculate Cumulative interest and principal payments.Question #5 Suppose you are considering a $700,000, 25-year, fully-amortizing loan with 7% annual interest rate. We assume monthly compounding. Assume that the total closing expenses are equal to 3% of the loan amount. After acquiring a property with borrowed funds, if you sell the property after 5 years, then what should be the amortized financing costs in year 5? A) $840 B) $16,800 C) $17,640 D) $18,480 E) $21,00010. Loan amortization and capital recovery After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000-with no ($0) down payment. She a to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount 1 2 3 4 $45,000.00 Payment Interest Paid Principal Paid Ending Balance -$0.02
- K A person purchased a $220,222 home 10 years ago by paying 20% down and signing a 30-year mortgage at 11.1% compounded monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 20-year mortgage at 6.9% compounded monthly. How much interest will refinancing save? Money Saved: $ (Round to the nearest cent as needed.)SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63Question 2: Please draw the Cash Flow on the diagram. You Take a Loan to Buy an Apartment for : 100,000JD Interest Rate : 12.0% Loan Period : 30 years Down payment : 20% Registration Fees : 5% Selling Price @ year 30 : 900,000 JD Calculate the monthly payment=? Calculate the NPV.
- Answer accrding to last two cnditionMortgage, part 1 (The Loan)5 years ago you purchased a home for $215,000. You made a 10% down payment and paid for the rest with a 30 year mortgage with a rate of 4.65%. How much was the down payment? How much of the purchase price did you finance with the loan? What is your monthly payment? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much of the loan is left to pay after the first 5 years? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much did you pay to the lender (total) over the first 5 years? How much of what you paid to the lender in the first 5 years was interest? If you paid this loan for all 30 years, how much interest would you pay?When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%
