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 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: It’s time to get a new laptop that is $2500. If you save up for it each month it will take one year…

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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…

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

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A: Maximum you should pay for the property is the present value of future cashflows

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: 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: Nikul

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

Q: Suppose you want to buy a new house. You currently have $20,000, and you figure you need to have a…

A: Data given:Cash in hand= $20,000Down payment=10%Closing cost=5%Cost of home =150,000Rate of…

Q: You want to buy a home in 5 years, and you think at that time you will be able to afford to buy a…

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

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: 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 have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of…

A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

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

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A: We'll compare the price per year with the present value of cash inflows in order to arrive at a…

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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 have to buy a new copier. The cost of the copier is​ $2,075​, plus ​$410 per year in maintenance…

A:

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…

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A: Relation between present value and future value With present value (PV), annual interest rate (r)…

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

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A: Given data; Initial payment = $350,000 number of years = 10 monthly received cash = $1400 selling…

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

A: 40% of down payment still required = 40%*$29000 = $11600 18% of down payment as improvement cost =…

Q: If you are considering the purchase of a consol that pays $60 per year forever, and the rate of…

A: PERPETUITY : IT IS ANNUITY WHICH IS PAID FOREVER. PV =ar where, a=annual payment r= rate

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A: Valuation of Property or Entity : The valuation of entity is the present value of inflow generation…

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…

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A: Rate of return: It is the percentage of return generated from an investment.

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Q: You are thinking of purchasing a house. The house costs $354,000. You have $45,000 in cash that you…

A: House cost=$354000Cash=$45000Interest rate=r=6%Period=n=25 years

Q: If you put the money in an account that earns 4.5%, how much will you have to save each month?Your…

A: The future value of an annuity can be found using the following formula: FV = PMT*(1+rm)mn -…

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.