Suppose you want to buy a new house. You currently have $15 000 and you figure you need to have a 10% down payment plus an additional 5% of the loan amount in closing costs. If the type of house you want costs about $150 000 and you can earn 7,5% per year, how long will it be before you have enough money for the down payment and closing costs?

Q: You are thinking of purchasing a house. The house costs $250,000. You have $25,000 in cash that you…

A: Down-payment Down-payment is non-refundable initial payment made by buyer while purchasing a…

Q: You just found the perfect house. However, 15.50 percent per year to buy the house You need to get a…

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

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: 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: I want to buy a $195,000 house and plan to pay 20% as a down payment t and take a 3.8% APR loan for…

A: To find the monthly payment, we will use 'PMT' function in excel. As down payment is 20% ($39,000),…

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 found a house which comes with a price tag of $200,000. Your bank is willing to finance…

A:

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Calculations of compound interest compounded on daily basis on borrowed amount is shown below:…

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: ou want to buy a $224,000 home. You plan to pay 15% as a down payment, and take out a 20 year loan…

A: Monthly payments on an amortized loan refer to a fixed amount of money that a borrower pays each…

Q: Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and…

A: Negative amortization means interest on the loan is not paid due which the loan amount tends to…

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'd like to purchase a house.  You're monthly take home pay is $4560. You'd like to use one fourth…

A: PMT is the periodic payment, in this case it is paid monthly.

Q: how long will it be before you have enough money for the down payment and closing costs?

A: Information Provided: Amount at hand (Present value) = 15,000 Down payment = 10% of house cost…

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 $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: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

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

Q: Nikul

A: The objective of this question is to calculate the total cost of the loan including the principal,…

Q: You want to buy furniture’s from home centre that cost RO 600. You currently have RO 500. If you are…

A: The question is related to Simple Interest concept. The details are as under Future value = RO 600…

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

A: Loan Payments: These are payments comprising interest & principal amounts. Such payments are…

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: You have a client who wants to buy a house. He needs $40,000 for a down payment and has $30,000…

A: Here we have to invest $ 30000 at the 5% annual rate but compounded quarterly. and want $ 40000 in…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Computation:

Q: Fou want to buy a $221,000 home. You plan to pay 15% as a down payment, and take OL he rest. a) How…

A: Down payment is the advance cash payment that is made out of pocket for the purchase of a home and…

Q: You want to buy a $182,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: A= 182,0000t= 30 yearsDown Payment = 20%

Q: You want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Cost of home = $169,000Down payment = 20%Interest rate = 4.85%Number of years = 30 years

Q: Say that you purchase a house for $234,000 by getting a mortgage for $205,000 and paying a down…

A: To calculate the monthly mortgage payment, we use the formula for calculating the payment of an…

Q: Assume that you want to buy a house that costs $350,000+u dollars. If you make a 20% down payment,…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Continuous interest is computed below:

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

Q: Nikul

A: The objective of this question is to calculate the total cost of the loan including the principal,…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: The interest calculated on the initial or principal amount which includes all the accumulated…

Q: You want to buy a $234,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Mortgage refers to a covered loan that is borrowed for purchasing a property. The property itself…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose…

A: given, price = $525000 n = 30 years r = 4.64% m = 12 down payment =30%

Q: se price of the house, and you are looking at a 20 year loan at 6.12% interest compounded monthly.…

A: Maximum price = Down payment amount + Present value of mortgage payment

Q: You start saving up to buy your dream house. The house is valued at $620,000 right now. You think…

A: Future value can be calculated  by using the following formula  FV = Present Value (1+r)n

Q: You need $6,000 to buy new furniture. If you have $1,000 invest today at 8% compounded annually, how…

A: In this question we need to compute the number of years i.e. time period.This question is based on…

Q: ou have decided to buy a house! The house you have decided on has a list price of $380,000. You will…

A: in this we need to calculate the present value factor monthly and get monthly payments.

Q: There is a probability of 30 percent that the economy will boom; otherwise, it will be normal. Stock…

A: Standard Deviation: The standard deviation of investment is a measure of the risk that the…

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: f I want to buy a new house and currently have $45 000 and I need to have a 10% down payment plus an…

A: Information Provided:Amount at hand (Present value) = 45,000Down payment = 10% of house costClosing…

Q: You have decided to purchase a house. The house has a current price of $300,000 and you plan on…

A: A mortgage refers to a loan borrowed for purchasing a property where the property itself is 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.