Peter wants to buy a house in Edmonds that costs $400,000. He plans to pay $100,000 as a downpayment. The mortgage company is willing to give him a 5-year contract plan at a 10% interest rate compounded monthly. The mortgage will be pay off over 10 years period. i. What are Peter's monthly payments? ii. What are the remaining payments after 5 years term of the mortgage plan?

Q: Amna has a housing loan of $50,000 over 15 years with a 6% interest rate. According to the Bank he…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

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

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A: Excel Spreadsheet:

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

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

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

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: Hi, As per the guidelines, I will answer the first three sub-parts. Please re-submit the unanswered…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: A method of the loan in which the amount of installment is evaluated by combining the principal and…

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A: Amortization refers to the systematic periodic repayment of mortgage amount spread over the…

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

A: Loan rules can vary depending on the type of loan and the lender. The interest rate is the cost of…

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A: Solution- Part 1- A=PV/APV IFA12%,30 years    =$700008.055     =$8,690.25Annual payment=$8,690.25

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: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: As per our guidelines we are supposed to answer only 3 sub- parts if there are multiple sub-parts.…

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A:

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A: Solution- A: Principal due = 145000*(1-15%) = 123250 Total due = P*(1+rt) = 123250*(1+ 42*7.45%/12)…

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A: Time value tells that money received today has more value than that of receiving the exact value…

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.