suppose a 25- year mortgage of $400,000 at a fixed nominal interest rate of 3.5% per year, compounded annually. 1. what is the yearly payment? 2. what are the interest paid and the principal repayment in the first year?

Q: A $230,000 mortgage has a stated annual rate of 4.5% on a 30 year loan.  What is the monthly…

A: Compound = Monthly = 12Principal Amount = p = $230,000Rate of Return = r = 4.5 / 12 = 0.375%Time = t…

Q: What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6…

A: using financial calculator to solve the monthly payment

Q: You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each…

A: Nominal Interest Rate: It represents the rate of interest that does not take into consideration the…

Q: 16. for simple interest FIND THE UNKNOWN QUANTITY FOR EVERY GIVEN CONDITION (show your solution…

A: This question is related to simple interest. In simple interest, a few terms such as principal,…

Q: Compute the interest paid on a 30-year mortgage for $216,427 if the annual interest rate is 3.8

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: If $500 is borrowed and the interest after 18 months is $45, what is the annual interest rate for a…

A: Given:

Q: Suppose you have a 30 year mortgage for 221,564 with quarterly payments of 5,552 what is the total…

A: Interest can be computed as follows  = Total Payment - Principle Amount of Mortgage Total payment is…

Q: What will be the monthly payment on a home mortgage of $75,000 at 12% interest, to be amortized over…

A: Loan amount (P) = $75,000 Interest rate = 0.12 Monthly interest rate (i) = 0.01 (i.e. 0.12 / 12)…

Q: Consider a 15-year, 9% mortgage for $200,000 with annual payments that are structured in the…

A: Given: Years = 15 Interest rate = 9% Loan amount = $200,000

Q: 2. Consider a 25-year fixed-rate mortgage for $600,000 at a nominal rate of 8%. What is the…

A: A mortgage is a loan taken out for the purchase of a property. The property itself acts as…

Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…

A: Future Value = Present value ( 1 + i )n

Q: A loan of $10200 is to be amortized with quarterly payments over five years.  The interest on the…

A: Principal Amount = p = $10,200Compound = Quarterly = 4Time = t = 5 * 4 = 20Interest rate = r = 7.5 /…

Q: What is the monthly payment amount on a $100,000 home loan if the rate is 6.0% APR, and the loan is…

A: Present Value of loan (PV) = $100,000Annual Rate = 6%Monthly rate (r) = 6% / 12 = 0.5% or…

Q: A mortgage for $100,000 is made with initial payments of $500 per month for the first year. The…

A: Given: The mortgage is $100,000 The initial payment is $500 The rate of interest is 9%

Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: 9. Suppose you have a 20-year mortgage of $175,000 with an interest rate of 5.25%. Determine the…

A: We can calculate future value with compound interest using this formula: future value= present value…

Q: Consider a $100,000, 30-year, 7% interest mortgage loan with monthly payments. What is the interest…

A: Interest payments:Interest payments refer to the amount of money that is paid by a borrower to a…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent…

A: A loan amortization table is a schedule of payback of a loan in equal installments planned at a…

Q: A $230,000 mortgage has a stated annual rate of 4.5% on a 30 year loan.  How much interest is paid…

A: Mortgage amount = $230,000Interest rate = 4.5%Period = 30 years

Q: What would the monthly payment be on a 20-year amortized loan of $273,600 with an interest rate of…

A: The objective of this question is to calculate the monthly payment for a 20-year amortized loan of…

Q: A 30-year mortgage requires payments of $2,850.28 at the end of each month. If interest is 5.39%…

A: Compound = Monthly = 12Time = t = 30 * 12 = 360Payment = p = $2850.28Interest Rate = r = 5.39 / 12 %

Q: What is the monthly mortgage constant on a 30-year mortgage loan of $90,000 requiring payments of…

A: Here, we'll find loan, IRR for the year.

Q: What is the monthly payment on a mortgage of $275,000 with a 6.75% interest rate that runs for 25…

A: Compound = monthly = 12 Present Value = pv = $275,000 Interest rate = r = 6.75 / 12 = 0.5625% Time =…

Q: A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments…

A: A mortgage is a covered loan that is borrowed to purchase a property. The property in question acts…

Q: Find the monthly payment needed to amortize a typical $220,000 mortgage loan amortized over 30 years…

A: COMPOUNDED MONTHLY RATE (5.3%/12) 0.441667% YEARS  (12*30) 360 PRESENT VALUE $220,000…

Q: What is the internal rate of return on a $3,000 loan to be repaid as $3,500 twoyears from now?

A: An internal rate of return is the metric used in financial analysis for estimating potential…

Q: A 25 year mortgage requires payments of $3443.75 at the end of each month. If interest 5.84%…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: What is the monthly payment for a $525,000 loan at 7.0% interest for 25 years with monthly payments?

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A mortgage of $26, 252.00 is to be repaid by making payments of $ 1368.00 at the end of each year.…

A: A mortgage is a covered loan that is taken out for the purchase of a property with the property…

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.