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?

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A: Given information: Purchase price = $2,500 i.e. the amount which is required at the end of one year…

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: Using a financial calculator, You can buy property today for $2.1 million and sell it in 6 years for…

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

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

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…

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

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…

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: 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…

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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:

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A:

Q: Nikul

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

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

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

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

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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: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

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A: TVM is the concept that considers money's interest-earning capacity, which makes money earned…

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.