Suppose you want to buy a $144,000 home. You found a bank that offers a 30-year loan at 3.3% APR. A. What will be your monthly payment? (Round to the nearest cent.) B. How much would you end up paying the bank in total for the home after 30 years? (Round to the nearest cent.) C.Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment (assume the same interest rate)? (Round to the nearest cent.) D. How much would you end up paying the bank in total for the home after 25 years? (Round to the nearest cent.)

Q: You want to buy a $260,000 home. You plan to pay $26000 as a down payment, and take out a 30 year…

A: When a person does not have enough money to buy any assets, he would consider taking a loan. The…

Q: Suppose you are buying a house. You find the perfect one for $215,000. The bank offers you a 30-year…

A: When you take out a loan mortgage then you make fixed periodic payments. In this case the payments…

Q: a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much…

A: Loan payments can be paid off in periodic payments. To understand the periodic payments the loan…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: PMT function gives the payment for the loan for the constant payment and the constant rate of…

Q: You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: We have a mortgage transaction on a home. We have to find some amounts based on the mortgage.

Q: offer 30-year mortgage that requires annual payments and has an interest rate of 5% per year. What…

A: Mortgage amount are paid by monthly payment or annual payment these are fixed periodic instalments…

Q: You want to buy a $191,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Cost of home = $191,000Down payment = 15%Loan terms = 30 yearsInterest rate = 7%

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: When a loan's conditions, including its interest rate, payment schedule, or other terms, are…

Q: You want to buy a $240,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Home value = $240,000 Down payment = $48,000 (i.e. $240,000 * 0.20) Monthly period (n) = 360 (i.e.…

Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…

A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

Q: You want to buy a $260,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: a) Loan Amount = Total price of house - Down payment  = 260,000 - (260,000 * 5%) = 260,000 - 13,000…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 5.44% interest. Suppose…

A: Note: No intermediate rounding is done for successive parts as well.   Value of house = $525,000…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 5.14% interest. Suppose…

A: Present value of annuity.PV = A × Where,PV = present value of annuity A = periodic payments r =…

Q: Do you want to By A home for $330,000. You plan to pay 33,000 as a down payment and take out a 15…

A: Loan amount is the amount that is borrowed from a financial institution after paying a certain…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: You want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan…

A: Closing cost is the cost which has to be paid by either seller or the buyer to the government when…

Q: You want to buy a $253,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Mortgage loans are secured loans that are paid by equal fixed monthly payments that carry the…

Q: Suppose you want to buy a $145,000 home. You found a bank that offers a 30-year loan at 3.1% APR.…

A: The concept of time value of money will be used and applied here. When we take a loan or a mortgage…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 5.74% interest. Suppose…

A: Home cost = $425,000Period = 30 yearsInterest rate = 5.74%Down payment = 30%

Q: a $145,000 home. You found a bank that offers a 30-year loan at 3.5% APR. What will be your monthly…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8%…

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

Q: the amount of the down payment?

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

Q: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: The monthly loan payment can be calculated by using the excel formula ''=PMT''Effective Annual Rate…

Q: Suppose you want to buy a $146,000 home. You found a bank that offers a 30-year loan at 5.3 % APR.…

A: Amount of Loan is $146,000 Time period is 30 years Interest rate is 5.3% To Find: Monthly payment…

Q: You want to buy a $230,500 home. You plan to pay 20% as a down payment, and take ou 5% for the rest.…

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

Q: You deposit $400 each month into a retirement account earning 6% interest compounded monthly. How…

A: Data given: P=Monthly deposit = $ 400  (assumed deposit at the end of each month) r= 6% compounded…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: The loan is an agreement between two parties where an amount is forwarded on a promise of repayment…

Q: You want to buy a $243.000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

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

Q: You want to buy a $248,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Loan: It represents the amount borrowed by the borrower for the purpose of purchasing assets like…

Q: Suppose you have a student loan of ​$50,000 with an APR of 6​% for 30 years.   a. What are your…

A: Here,Loan Amount is $50,000APR is 6%Time Period is 30 years

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.