Say that you purchase a house for $174,000 by getting a mortgage for $155,000 and paying a down payment of $19,000. If you get a 15-year mortgage with an interest rate of 6 percent, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PAYMENT?   What would the loan balance be in five years? (Use a payment value rounded to 2 decimal places. Round your final answer to 2 decimal places.) LOAN BALANCE?   If the house appreciates at 3 percent per year, what will be the value of the house in five years? (Round your final answer to 2 decimal places.) FUTURE BALANCE?   How much of this value is your equity? (Use intermediate values rounded to 2 decimal places. Round your final answer to 2 decimal places.) EQUITY?

Q: Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to…

A: When you take out a home mortgage from a bank then you pay same monthly amount each month over the…

Q: Mortgage. You are arranging a $350,000 Canadian mortgage with a 25-year amortization period and a 7%…

A: The mortgage is an arrangement of loan repayment in equal monthly instalments, the instalment…

Q: O =FV(0.0525/12,12 15,-87500) 12x15 .0525 = 875000 (1+ 12 12x15 .0525 87500 12 0.0525 x 15 x 12 x…

A: mortgage amount =87500 interest rate =5.25 monthly interest =5.25/12 Period =15 years.

Q: Question 9 part c and d

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You are looking to buy a car. You can afford $720 in monthly payments for five years. In addition to…

A: Monthly payment (P)= $720 Down payment (DP) = $820 Interest rate = 9.75% Monthly interest rate (r) =…

Q: You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

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

Q: Practice Question 2You need to borrow $800,000 to buy a house.You borrow the money from a bank via…

A: The objective of this question is to calculate the monthly repayment for a mortgage loan of $800,000…

Q: Maria takes out a 30-year mortgage for $220,324 at an annual interest rate of 3%. How much does she…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: uestion 11 Find the monthly house payment necessary to amortize the following loan. In order to…

A: As per the given information: Amount borrowed - $70,000 Rate of interest - 12% Time - 15 years To…

Q: You have just arranged for a $1,800,170 mortgage to finance the purchase of a large tract of land.…

A: Loan balance:The loan balance is the outstanding amount of money that a borrower owes to a lender,…

Q: 9. You a buying a home for $425,000 and would like to determine the monthly mortgage payment. You…

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

Q: You are looking to buy a car. You can afford $400 in monthly payments for four years. In addition to…

A: The amount of the downpayment is $1,500 The monthly payment "PMT" is $400 The interest rate is 8.25%…

Q: How much the monthly payment on a $114,000 home be if you get 4.1% interest over a 15 year loan with…

A: Here, Loan Amount is $114,000 Interest Rate is 4.1% Time Period of Loan is 15 years Compounding…

Q: Question 9 Avi is expecting to get a $372,000 15 year mortgage. If the interest rate on the mortgage…

A: Absolutely! We can calculate the monthly payment for Avi's mortgage manually using the following…

Q: Mr. Peter takes out a mortgage of $50000 to buy a house. The mortgage will be paid over 20 years…

A: A mortgage is a loan taken out to purchase a property, typically a home. The property serves as…

Q: You purchase a home for $436,000 by making a down payment of 15% and financing the remaining amount…

A: Particulars Amount ($) a Value of House 436000   Less:    b Down Payment @15% 65400 c…

Q: You want to buy a $50,000 car. You can finance the car for 0.9% interest for 5 years. You decide to…

A: Solved using Financial Calculator  Assuming Interest rate is 0.9% per annum compounded monthly…

Q: The purchase price of the house you are buying is $180,000. A loan-to-value ratio of 90% will…

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

Q: You have $2,000 on a credit card that charges a  20% interest rate. If you pay off the credit card…

A: Using excel PMT function

Q: Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year fully amortizing…

A: Building Cost  $     10,00,000.00 LTV 80% Interest Rate 4% Time Period 30 Balloon Payment…

Q: Smith is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: You have just purchased a $250,000 home, and the bank has quoted you an interest rate of 6.5% on a…

A: Amortization of loan refers to the regular and equal installment payment against the mortgage amount…

Q: The cost of a home you want to purchase is $250,000.00. To qualify for a mortgage, your lender wants…

A: Monthly payment refers to the amount that is paid at every month for the repayment of loan amount…

Q: You need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend…

A: Here,LoanAmount is $210,000Affordable Monthly Payment is $950Tenure of Loan is 240 monthsAPR is 6.1%

Q: Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments.…

A: Loan amount(PV)=$120,000 Duration (n)=30*12=360 periods Rate per period(i)=0.0612=0.005 Monthly…

Q: vvk.4

A: The objective of this question is to calculate the balloon payment for a mortgage loan with a…

Q: QUESTION 30 You buy a home for $460 thousand dollars, paying 9% down, with a 30-year mortgage with a…

A: PMI is the monthly payment for insurance and other related expenses and can be removed when there is…

Q: Find the onthly house pay In order to purchase a home, a family borrows $70,000 at 12% for 15 years.…

A: To amortize a loan means to find the payment schedule for a loan. When a loan is taken payments are…

Q: reverse annuities, because you get a lump-sum amount as a loan in the beginning, and then you make…

A: A mortgage is a type of loan specifically used to purchase real estate. In a mortgage agreement, the…

Q: Suppose you want to buy a $147,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

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.