Sandra gets a $250,000, 30 year mortgage with annual payments of 4.0% rate.  What is the balance of the loan after 20 years?  Choose the closest. a) $117,264 b) $83,250 c) $14,458 d) $196,482

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

A: loans are paid by the monthly payments and these payments carry the payment of loa amount and…

Q: (b) What is the total amount of interest EACH loan? Show your work. (c) Overall, how much more…

A: we have to find out monthly payment under each option and calculate interest under each option.

Q: Vipula De Silva has just bought a boat by taking an unconventional 13 year, $82,884 mortgage from…

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

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: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Excel Spreadsheet:

Q: Barbara and Jerry can afford a mortgage payment of $1, 500 per month. If interest rates are 3.25%…

A: Mortgage payment = $1500Interest rate = 3.25%Maturity = 30 YearsTo find: Amount to borrow.

Q: Please solve correctly and Ill rate well thanks need to do right. Olivia plans to secure a 5-year…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Larry and his wife Cuke have a mortgage of $200,000 at a rate of 3.25 % (annual) for 30 years. How…

A: Amortization of loan refers to the regular and equal repayments of the loan along with the interest…

Q: Jason and Coretta Bradley got a $206,000, 20-year mortgage loan at 5.35%. Find the amount of the…

A: To find the amount of the final payment on the mortgage, we need to determine the regular monthly…

Q: Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for…

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

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…

A: Loans are paid by the monthly payments and these are equal monthly installments and these carry the…

Q: Donald and Barbara have 30-year $155,000 mortgage at 7.68% compounded monthly.     (a) What was…

A: Mortgaage loan = $155000 Time(n)              = 30 year interest (r)           = 7.68%p.a

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

A: Amortization is a process of gradually paying off a debt or loan over a period of time through…

Q: A woman buys a house for $265,000. She pays $70,000 down and takes out a mortgage at 6.6% on the…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: Olivia plans to secure a 5-year balloon mortgage of $230,000 toward the purchase of a condominium.…

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

Q: You have been shopping for a new home. You have the choice of financing for your $300,000. You can…

A: Principle amount is $300,000 We have two Choices:- 1st Choice:- Rate of interest is 4.5% Loan…

Q: A couple requires a mortgage loan of $182,000. They figure they can afford $1400 a month. If they…

A: A mortgage refers to a covered loan that is taken out for the purchase of a property which itself…

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: Assume Jenny took out a $400,000 mortgage to pay for her new house. The mortgage rate is 5.7%. It is…

A: Information Provided: Mortgage amount = $400,000 Interest rate = 5.70% Period = 25 years

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

A: Information Provided: Home cost = $417,000 Down payment = $26,000 Interest rate = 5.83% Years = 30…

Q: 6. Smith is willing to spend $2,000 per month on her mortgage payment. If Smith obtains a fully…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

Q: Rose believes that she can afford a monthly mortgage payment of $1,450.00. At a mortgage rate of…

A: > Given data: > The monthly payment is 1000 and the rate is 4.9% > The period = 25 years…

Q: Michael needs an investment loan. He gets a simple interest amortized loan for $12,000 at 9 % for…

A: Amortized loan include a series of equal timely instalments paid at the end of each time interval.…

Q: Mr. Smith is purchasing a $160000 house. The down payment is 20 % of the price of the house. He is…

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

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: Bob got a 30 year Fully Amortizing FRM for $1,500,000 at 4%, except with non-constant payments. For…

A: Amortization plans depict how the principal balance unpaid on a loan decreases over time as the…

Q: Jason is buying a home with a $150,000 mortgage using a 6 percent, 15-year loan. How much of the…

A: Loan amortization schedule represents the amount of periodic payments composed of the interest…

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: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Calculate the monthly payment as follows: Monthly payment is $1527.73.

Q: Donelle just purchased a new home with a $400,000 mortgage with a fixed rate of 8.5% (APR) and a…

A: M is the total monthly mortgage payment.P is the principal loan amount (which is $400,000 in this…

Q: If I purchase a home for $150,000. I do a fixed 30-year mortgage at 6%. I have to put down 10% or…

A: Monthly payment = Loan Amount/Annuity factor Annuity factor = (1 - (1+r)^(-n) )/r r = monthly…

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.