ou want to buy a home but not take out a mortgage. You want to buy it outright when you are able to do so. You estimate that the home you will want to buy will cost $500,000. You have $20,000 today to set aside for it. The bank will pay you 2.8% annual interest. How long will it be before you can buy your home?

Q: s. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: ou have just sold your house for $900,000 in cash. Your mortgage was originally a 30-year mortgage…

A:

Q: You're going to need a home . You can afford $1400 to put to your mortgage if the loan charges 6%…

A: Future value refers to the value of current assets at some future date based on the interest…

Q: a payment. If the interest rate on the mortgage is 6.75% (APR), how much cash will you have from the…

A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…

Q: You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year…

A: Mortgages or loans can be referred as the debt that an investor takes when they borrowed funds from…

Q: offer 30-year mortgage that requires annual payments and has an interest rate of 5% per year. What…

A: Mortgage amount are paid by monthly payment or annual payment these are fixed periodic instalments…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: You want to buy a $228,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Part (a) Given information, Home price = $228,000Down payment = 5% or 0.05 Calculate the loan amount…

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

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

Q: Using a financial calculator, You can buy property today for $2.1 million and sell it in 6 years for…

A: Given information,Purchase price:  millionSale price:   millionNumber of years:  yearsInterest rate:…

Q: You found your dream house. It will cost you $300000 and you will put down $45000 as a down payment.…

A: Purchase Price of House= 300,000  Down payment = 45,000  Loan Amount = Purchase Price - Down payment…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: Balloon payment calculation:

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are…

A: STEP 1 MORTGAGE When you and a lender enter into a mortgage, the lender is granted the power to…

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: 1)  Loan Amount = 80% of 415,000 = $332,000.

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: gages, loans taken to purchase a property, involve regular payments at fixed intervals and are…

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

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: Suppose you are in charge of annuities for a life insurance company. A customer comes in and wants…

A: Annuity amount =1,000,000 Lets assume Remaining Life =55 years Life in months =660 Interest rate 7%…

Q: You have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of…

A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

Q: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…

A: A down payment is an early stage payment made for a particular good purchased through financing.

Q: You are thinking of purchasing a house. The house costs S 431,000. You have $ 45,000 in cash that…

A: Loan installment is that which is paid by the borrower to lender for a specified period of time.…

Q: You obtain a 30-year home mortgage and your monthly payment is $3000.00. Instead of paying monthly…

A: Time period for mortgage is 30 years Case -1:Monthly payment of $3000 Case -2: Yearly  payment of…

Q: You have just sold your house for $950,000 in cash. Your mortgage was originally a 30-year mortgage…

A: A mortgage refers to a loan obtained to purchase real estate, generally a home. The borrower agrees…

Q: fter 5 years, you decide not to use the money for a car. Instead, you'll take $10,000 to buy a…

A: Price of home=$375000Down payment=$8000Interest rate=5.75%Period=30 years(Note=in this first three…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are…

A: A mortgage indicates the sum borrowed to meet a specific purpose. Generally, mortgages are taken to…

Q: You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank.…

A: You're planning to purchase a house for $250,000, and you'll make a 20 percent down payment. So,…

Q: You have just sold your house for $900,000 in cash. Your mortgage was originally a 30-year mortgage…

A: A mortgage refers to a covered loan borrowed for the purchase or maintenance of a property with the…