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: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: nsider a 30 year mortgage for $310873 at an annual interest rate of 3.5%. What is the remaining…

A: Mortgage loans are common in buying homes because are easy to get and easy to pay be monthly…

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: Suppose you secure a $250,000 mortgage loan to be paid off over 30 years at an annual interest rate…

A: Calculator steps: I/y = rate = 7.1%/12 = 0.5916667% NPER = Number of periods = 30*12 = 360 PV =…

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: Consider a 30-year mortgage for $181,420 at an annual interest rate of 3.1%. What is the remaining…

A: The time period of the mortgage is 30 years the amount of  mortgage is $181,420 The annual interest…

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 would be the monthly payment on a 20-year, $140,000 mortgage loan if the rate was 3.5%, monthly…

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

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: Consider a 30-year, fixed-rate mortgage for $100,000 at a nominal annual rate of 9%. If the borrower…

A: GIVEN, N=30 P=$100,000 R=9% PAYMENT=12

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 $127,000 mortgage has a 30-year term and a 10% nominal interest rate. (a) What is the monthly…

A: The amount that is deducted from your outstanding loan balance is known as the principal component.…

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: Assume we have a $500,000 mortgage at a 3.5% original interest rate, 30-yearterm, and monthly…

A: Step 1:Calculation of monthly payment @ initial interest rateThis is what the formula looks like for…

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: What is the cash value of a property with a mortgage that requires payments of $1200 per month for…

A: To determine : Cash value of property  Monthly Payment = pmt = $1200 Term =  25 years Number of…

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: 2. A mortgage has the following terms: Amount: $750,000 Rate: 6.25% Amortization (Years): 30 Term…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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: Consider a 20-year mortgage for $174,334 at an annual interest rate of 5%. After 8 years, the…

A: Time period = 20 years  Value of mortgage = $174,344 Annual interest rate = 5% Refinancing time…

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: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Here,

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…

Q: The monthly payments for the first three-year term of a $440,000 mortgage loan were based on a…

A: Mortgage is a value which is borrowed from other sources like banks and this amount is repaid later…

Q: Consider a standard mortgage (360 months) with monthly payments and a nominal rate of 6.80%. What…

A: Given information: Assume present value is 100 Nominal interest rate is 6.80% Number of periods is…

Q: Consider a 20-year mortgage for $142,044 at an annual interest rate of 5.2%. After 8 years, the…

A: Original Time period of mortgage is $142,044 Annual interest rate is 5.2% Annual refinancing…

Q: The maturity of the balloon loan is 5 years, amortization period is 30 years, loan amount is $85,000…

A:

Q: What is the effective annual rate​ (EAR) of a mortgage that is advertised at ​% ​(APR) over the next…

A: Effective interest rate is rate of return realized after considering the impact of compounding on…

Q: Consider a $100,000, 30-year, 6.2% mortgage with monthly payments. What portion of the payments…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: A 30-year mortgage requires payments of $4,865.46 at the end of each month. If interest is 5.31%…

A: Present value = Annuity * PVAF ( Monthly rate, Number of months Interest Amount = Total Amount paid…

Q: Consider an amortized loan of $41,000 at an interest rate of 7.9% for 8 years. What is the total…

A: An amortized loan is a loan that requires regular, equal payments throughout its duration. Each…

Q: b. You have a $300,000 mortgage with a 3.6% annual percentage rate with monthly compounding and a…

A: The monthly payment on a mortgage is an annuity i.e. the payment amount remains the same for the…

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.