Show all work for full credit. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.\table[[Option 1: 30-year loan at an APR of 4.65 %, Option 2: 15-year loan at an APR of 3.85%Show all work for full credit.1. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.Option 1: 30-year loan at an APR of 4.65%Monthly payment:PV=PMT =FV =APR =Periods =Compounding:Total payment:Option 2: 15-year loan at an APR of 3.85%Monthly payment:PV =PMT =FV =APR =Periods =Compounding:Total payment:Percent of total payment that went towardprincipal:Percent of total payment that went towardprincipal:Percent of total payment that went towardinterest:Percent of total payment that went towardinterest:Describe a situation where Option 1 would be a Describe a situation where Option 2 would be abetter choice for someone:better choice for someone:2. Suppose you can afford a $350 monthly car payment. How much can you afford to finance at 4.75%APR for 5 years?PV =PMT=FV =APRPeriods =Compounding:

Step 1: Identify the givenFind OPTION 1OPTION 2PVPresent Value is the loan…

Answered: Show all work for full credit. Fill out…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

See similar textbooks

Question

Show all work for full credit. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.
\table[[Option 1: 30-year loan at an APR of 4.65 %, Option 2: 15-year loan at an APR of 3.85%
Show all work for full credit.
1. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.
Option 1: 30-year loan at an APR of 4.65%
Monthly payment:
PV=
PMT =
FV =
APR =
Periods =
Compounding:
Total payment:
Option 2: 15-year loan at an APR of 3.85%
Monthly payment:
PV =
PMT =
FV =
APR =
Periods =
Compounding:
Total payment:
Percent of total payment that went toward
principal:
Percent of total payment that went toward
principal:
Percent of total payment that went toward
interest:
Percent of total payment that went toward
interest:
Describe a situation where Option 1 would be a Describe a situation where Option 2 would be a
better choice for someone:
better choice for someone:
2. Suppose you can afford a $350 monthly car payment. How much can you afford to finance at 4.75%
APR for 5 years?
PV =
PMT=
FV =
APR
Periods =
Compounding:

Expert Solution

Step by step

Solved in 2 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $80,000 loan. Option 1: a 30-year loan at an APR of 8.15%. Option 2: a 15-year loan at an APR of 7.75%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $ enter your response here. The monthly payment for option 2 is $ enter your response here.
K Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
K Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. OB. Option 1 will always be the better option.
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $170,000 loan. Option 1: a 30-year loan at an APR of 8.25% Option 2: a 15-year loan at an APR of 7.8% Find the monthly payment for each option. The monthly payment for option 1 is $ enter your response here. The monthly payment for option 2 is $ enter your response here. ( Do not round until the final answer. Then round to the nearest cent as needed.)
Consider the following options for a $153,000 mortgage. Calculate the monthly payment and total closing costs for each option. Which option would Clearly explain why you chose the option that you chose. you choose? Option 1: a 30-year fixed-rate loan at 4.3% with $1500 closing cost and no points • Option 2: a 30-year fixed-rate loan at 3.8% with $1200 closing cost and 2 points
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $60,000 loan. Option 1: a 30-year loan at an APR of 7.15%. Option 2: a 15-year loan at an APR of 6.75%. Find the monthly payment for each option.
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8.5%. ... Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? imum budgeted Next
Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
I need the excel function typed out? Example =RATE???? G. Find the interest rate (APR) on a 27-year mortgage with a initial loan amount of $358,000, if the monthly payment is $2229.45 Let's use references for input values; and be sure to annualize the rate! INPUTS: OUTPUT: Period 27 Rate is APR Payment 2229.45 Loan amount 358000
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 2 will always be the better option B. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OC. Option 1 is the better option, but only if the borrower plans to…
Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% PA [¹-(1+] Use PMT= -nt7 to complete parts (a) through (c) below. a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ 845.80 The monthly payment for option 2 is $ 1051.22 (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.)

SEE MORE QUESTIONS

Recommended textbooks for you

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning