The following equation is used to compute monthly payments on a mort-gage:PA = (1- (1+ i)")Where A is the total mortgage amount, P is the monthly payment, i isthe monthly interest rate, and n is the number of months.Suppose that a client wants an $800,000.00 mortgage to be paid in 30years but he can pay no more than $7,000.00 each month. What is thehighest monthly interest rate that he would be able to pay?

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Answered: The following equation is used to…

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

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QUESTION 7. Calculate the monthly payments for Clytemnestra's new Honda. She picks a model that sells for $33,800 when all the options, fees and taxes are added. Clytemnestra makes a down payment of 15% of the total purchase price and finances the rest. Her loan term is 5 years. Her interest rate is 4.6% How much is her monthly payment, rounded to the nearest dollar?
a company wants to accomplish $100000 to purchase replacenent machinary ten years from now ,to accomplish this;equal quarterly payment are made to a fund that earns 4% compound quartely a.find the amount of each payment b. how much interest will be earned on the fund
A perpetuity's payments are made continuously. The rate of payment in the first year is $100 per year. Each subsequent year, the continuous payment rate increases by $5 per year. What is the present value of this annuity using a force of interest equal to 4%? Report your answer to the nearest ten dollars.
A charity is building a home for a low-income family. The house will cost $85,000.00 to build. The family will make monthly payments of $250.00 until the loan is paid. (a) How long will it take for the family to pay off the loan?(b) What monthly payments would it take to pay off the loan if they were charged 6% interest and the length of the loan were the same as in part (a)?
A homebuyer wishes to take out a mortgage of $300,000 for a 40-year period. What monthly payment is required if the interest rate is 11%?What is the total amount paid during the term of the loan? Carry out all calculations exactly and round the final answers only. Carry out all calculations exactly and round the final answer for the monthly payment to two decimal places and the final answer for the total amount paid to the nearest integer. The required monthly payment is $ i The total amount paid during the term of the loan is $ i
Question 5 Jean buys a $64,000 caravan by paying a deposit of $14,000. For the balance, she takes a loan and pays it off with monthly payments of $1,250 over 4 years. Calculate the balance owing after the deposit is paid. a b Calculate the total amount of interest paid. Calculate the annual flat rate of interest on the loan.
arter's aunt was planning to give Karter $9000 8 years from now. Karter convinced their aunt to give them $7000 now instead. If Karter invests this $7000 at 3.5% compounded continuously, how much money will Karter have 8 years from now? a) Karter will have $ b) How much interest will Karter earn? $ 100
Question 8 Wynn has just returned from a business trip in Britain with £150 of uncashed traveller's cheques. How much would he receive from the bank when he converts the currency back to Canadian dollars, assuming that the bank offers an exchange rate of C$1.00 = £0.5551 and charges a 0.70% fee to convert the traveller's cheques to Canadian funds? answer(s) should be rounded to the nearest cent. Amount = C$ 0.00
A loan of $26,000 is paid off in 36 payments at the end of each month in the following way: Payments of $650 are made at the end of the month for the first 12 months. Payments of $650 + x are made at the end of the month for the second 12 months. Payments of $650 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 12.2%?
The debtor wants to pay off a debt due from three amounts: 1000 riyals, 1500 riyals and 2000 riyals, on dates separated from today by 30, 35 and 40 days, in one batch after 38 days. What is the basic value of the payment, given that the rate used is 10%?
Payment of $882 due 1 month ago and $498 due today are to be repaid by a payment of $400 one month from today and the balance in 11 months for now. If money is worth 4% compounded monthly and the agreed focal date is 11 months from today. What is the size of the final payment?
Suppose that a loan is being repaid with 60 equal monthly payments, the first coming a month after the loan is made. If the rate of interest is 9.7 percent convertible monthly, and the amount of principal in the 22nd payment is 230, how much interest is in the 44th payment? Thank you!

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