Please solve correctly and Ill rate well thanks need to do right. Olivia plans to secure a 5-year balloon mortgage of $240, 000 toward the purchase of a condominium. Her monthly payment for the 5 years is calculated on the basis of a 30-year conventional mortgage at the rate of 3%/year compounded monthly. At the end of the 5 years, Olivia is required to pay the balance owed ( the "balloon" payment). What will be her monthly payment for the first 5 years, and what will be her balloon payment? (Round your answers to the nearest cent.)

Q: Roger has found a home to be purchase for $219,626 and has agreed to pay 30% down. Find the amount…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: The Wade family is interested in buying a home. The family is applying for a $200,000 30-year…

A: To find the monthly mortgage payment, we can use the formula for a fixed-rate mortgage…

Q: Frank and Fatima decide they will buy a two-bedroom garden-suite, with a 5750,000 mortgage from…

A: Principal (p)= $750,000 Rate (r)= 2.7% Time (t)= 5 years

Q: Tomás bought a house with a mortgage of $328,300. The mortgage is being finance interest rate of…

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Q: Sue obtains a one-year loan of $2,700 based on an interest rate of 10 percent compounded annually…

A: Compound = monthly = 12Time = t = 1 * 12 = 12Present Value = pv = $2700Interest rate = r = 10/12%

Q: Shaun and Kelsey decide they will buy a three-bedroom condo, with a $1,150,000 mortgage from Royal…

A: Shaun and Kelsey decided to mortgage = $1150000 from Royal trust Amortization = 25 years 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: Mr. and Mrs. Jones have taken out a mortgage loan of $195,000.00 from a bank at 5.5% APR for a fixed…

A: Formula to calculate monthly payments PMT=PV x i x (1+r)n(1+r)n-1 Where, PMT = Monthly payment n =…

Q: Sandra gets a $250,000, 30 year mortgage with annual payments of 4.0% rate.  What is the balance of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Ava Darling plans to buy a home and can deposit $1,772 per year for the next 5 years.. If the annual…

A: To calculate the future value of Ava Darling's deposits for the down payment, we can use the future…

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

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

Q: Roger and Susan are negotiating a mortgage on a new home. They have decided that the maximum…

A: Mortgage loans are secured loan and payble by easy monthly installments that carry the payment for…

Q: Use the formula or a calculator application to find the monthly payment on a home mortgage of…

A: Amortization of a loan refers to the gradual repayment of the principal amount borrowed over a…

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

Q: Gerry and Alex decide they will buy a two-bedroom garden-suite, with a $925,000 mortgage from West…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a…

A: Compounding is an important technique which increases the effective interest rate. Effective…

Q: How much does she still owe when there is 1 year left on the loan?

A: Interest is charged by the lender on the amount of loan taken. At the initiation of loan repayment,…

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

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Q: Seema takes out a 4 year mortgage for $1,125,000 at an interest rate of i(12) = 2.625%. The…

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A: A fixed rate mortgage is a type of mortgage in which interest rate does not vary and remains…

Q: grandmother’s estate in a few months’ time. He is eyeing to buy a 1-bedder condominium so that he…

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Q: Your brother is considering the purchase of a home rather than renewing the lease on his two-bedroom…

A: Monthly mortgage refers to an amount that is paid at every month for the repayment of total mortgage…

Q: Hector and Maria purchase their first home for $138,000. They make a 10% down payment and finance…

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

Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

A: Loan Amount = 400,000 Time Period = 20 years or 240 months Rate = 4.5% Continuous Compounding

Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…

A: A term loan is a form of credit instrument in which money is lent to someone else in exchange for…

Q: Sonia buys a house for $250,000. she makes a down payment of 15% of the purchase price and takes a…

A: Cost of house = $ 250,000 Down payment = 15%

Q: . Find the monthly payment (including taxes and insurance). U

A: Information Provided: Downpayment = 20% Amount = $310,000 Interest rate = 4% Term = 360 years Taxes…

Q: To buy a house, John takes out a fixed-rate amortizing mortgage of $270,000 for 20 years, with an…

A: Loan amount (PV) = $ 270,000 Annual interest rate = 9% Monthly interest rate (R) = 9%/12 = 0.75%…

Q: (a) Calculate the amount of the annual payment? (b) Create and complete the amortization

A: An annuity is the payment of an amount over a period of time at a fixed interval of time.

Q: Ann obtains a 30 year Fixed Rate, Constant Payment Mortgage with monthly payments for $4,500,000 at…

A: Balloon payment is final payment required to be made to settle the loan amount.

Q: The Johnson family is interested in buying a home. The family is applying for a $200,000 30-year…

A: Here,MortgageAmount is $200,000Time Period of Mortgage is 30 yearsMortgage Rate is 7.5%

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…

Q: offered her a 30-year fixed rate mortgage at 5.83%. What will be Angelina's monthly mortgage…

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Q: enny purchase a house for a selling price of 310,000 and need to make a 15% down payment. The…

A: Loans are paid by the monthly payments these are equal monthly payments that carry the payment for…

Q: A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% APR compounded…

A: Loan or mortgage amortization refers to the repayment of loan amount. In the process of amortization…

Q: John and Judy Jacobson have purchased a house for $450,000. They are putting 20% or $90,000 down…

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Q: Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with a mortgage amount of $4,500…

A: Mortgage:A mortgage represents a financial arrangement where an individual or entity borrows funds…

Q: Aziza is taking out a $3439 mortgage with a 30-year, fixed rate, fully amortizing loan and with 6.8%…

A: Loan amount (P) = $3439Monthly interest rate (r) = 0.00566666666666667 (i.e. 0.068/12)Number of…

Q: Bridgette can afford to make monthly payments of $800 towards a mortgage, and wants to fully own her…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a…

A: Mortgage amount refers to the money that is being borrowed by the borrower from the lender at a…

Q: Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making…

A: Mortgages is a loan contract used by persons to buy capital assets such as house on debt. Mortgages…

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.