What are the actual total savings for a borrower if the note rate is 6.625%, 30 year, 2/1 buy-down, sales price of a $140,000 with $20,000 down payment? (use P&l only for calculations)

Q: You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year…

A: Here, Value of Home is $200,000 Down payment is $20,000 Time Period of Loan is 20 years Interest…

Q: What was the interest rate on a 3.5-year loan, $1000 loan if the simple interest paid was $297.50?

A: Interest rate = (Total interest / amount) * (1/time)

Q: Solve the following problems involving real rates of return and interest. a) Find it with 5.5%…

A: Here, To Find: Part A. Real rate of interest =? Part B. Nominal rate of interest =? Part C. Average…

Q: What’s the equivalent interest rate to the terms 3/20, n/60? In other words, what is the effective…

A: Time Value of Money:  The term 3/20 means if the customer makes payment within 20 days he will enjoy…

Q: What is the effective interest rate charged to a loan of P5,000 paid after 5 years amounting to…

A: Effective Rate of Interest is the percentage return on the amount invested into any return paying…

Q: A company has a loan of 80,000 to be paid in 20 level annual payments. The interest and the…

A: Loans are paid by annual payments that carry the interest and loan amount but annual payments are…

Q: what is the interest rate

A: Interest rate is the rate at which the bank or any other lenders charges from the borrowers for…

Q: What should be the simple discount rate if a loan amount of P500,000 with a loan term of 3 years…

A: Loan amount (P) = P500,000 Loan proceeds (C) = P480,000 Loan term (t) = 3 Years Simple discount rate…

Q: Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans.…

A: The discount loan refers to a loan where the amount to be repaid is fixed and the amount provided to…

Q: 8. What is the present value of $100,0 00 received in 30 days if the discount rate is 3.0% annually?…

A: Simple interest is the amount paid on a principal part of a loan. Here the borrower does not pay…

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

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: 2. If you receive $249 each quarter for 4 quarters and the discount rate is 0.08, what is the…

A: In this Question we require to calculate the Present Value of Cash flows received every quarter for…

Q: If you borrow $100 at 5% interest rate (nominal) and inflation rate is 3%, what is the most accurate…

A: nominal interest rate = nr = 5% Inflation rate = ir = 3%

Q: Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when…

A: formula: A=P(1+rt) where, p=principal r=rate  t=time in years

Q: What would be the total interest paid

A: Interest is charged on the amount lent by the lender to the borrower. In short, any excess payment…

Q: Consider two loans with one-year maturities and id and a(n) 8.4% loan with a 4.5% (no-interest) comp…

A: Effective annual rate refers to the interest rate that is being charged by the lender to the…

Q: What is the total cost of interest with the new interest rate?

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: Select the correct choice below and fill in the answer box within your choice.

A: Loan Amount: It represents the credit given to the borrower by the lender. The borrower makes…

Q: The most expensive method of calculating the dollar cost of the interest on this installment loan…

A: Informantion provided: Borrowing amount = $1000 Interest rate = 10%   Definitions: Simple interest…

Q: A borrower gets a $75,000, 25 year, 13% loan with 4 points.  What is the true interest rate?

A: Given Information: Loan amount is $75,000 Number of years is 25 Interest rate is 13% 4 points on…

Q: The following installment loan is being paid off early. Calculate the rebate fraction, the finance…

A: The finance charged is the total cost that has charged for borrowed the specified amount for…

Q: Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance…

A: The annual percentage rate is a conventional way to quantify the whole cost of borrowing in…

Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that…

A: Compound = Monthly = 12Present Value = pv = $90,000Time = t = 20 * 12 = 240Interest rate = r = 7 /…

Q: Find the total installment cost and the finance charge for an installment loan with these…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: The following loan is a simple interest amortized loan with monthly payments. $155000, 9 1/2%, 30…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

Q: Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the…

A: Here, Loan Amount = GHC 5,000 Term of loan = 5 years  Interest rate = 9% Principal payment each year…

Q: monthly

A: I would borrow a loan that is amortized quarterly.   The reason for this is based on the principles…

Q: loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the…

A: Loans have interest rate and payments are made based on the interest and time period of loans and…

Q: 3. The lender charge P348.00 for a loan of P3,500.00 for 2 2 year. Determine the rate of interest.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: In order to borrow $100,000 for a 5% loan on a discount loan basis with a 5% compensating balance;…

A: Whenever an individual is in need of extra funds to finance his or her purchase in case of less cash…

Q: If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months.…

A: Loan amount = P 12450 Par value = P 12840 Discount amount = Par value-Loan amount…

Q: hat is the effective interest rate of a simple discount note for $27,500​,at an ordinary bank…

A: Effective Interest Rate -The rate used to compute the real return on investment and interest rate…

Q: What is the yield to maturity (YTM) on a simple loan for $1,000 that requires a repayment of $2,000…

A: > Given data:> Present value (PV) = $1000> Future value (FV) = $ 2000> Number of periods…

Q: Considering the following information, what is the net benefit if the borrower refinances the loan…

A: Loan refinancing is the process of taking out new loans to pay off old outstanding loans. Borrowers…

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: Consider a $5,000, 6%, 180-day interest-bearing note and a non-interest- bearing note for the same…

A: The notes are used by borrowers for raising funds that are categorized as interest bearing and…

Q: t rate would $1,000 at the end of 2000 be equivalent to $2,000 at the end of 2007? Use excel.

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.