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: Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one…

A: Given: Present value = $650 Periodic interest rate = 3.6% per period (annum)  n= number of periods =…

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: Which of the following is the cheapest for a borrower? 6.7% annual money market basis 6.7%…

A: Interest rate are compounded than effective interest rate is more and effective interest rate is…

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: 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: Suppose you borrow $1,000 of principal that must be repaid at the end of two years, along with…

A: Real interest rate is referred as an adjustments of an observed market rate regarding an inflation…

Q: Find the interest rate (or rates of return) in each of the following situations. Do not round…

A: The rate of return is a measure used to evaluate the profitability or performance of an investment.…

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: 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: 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: 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: 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: 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: 5. What is the yield to maturity on a simple loan for $1 million that requires a repayment of $2…

A: Amount of repayment (A) = $2,000,000 Principal amount taken (P) = $1,000,000 Term (n) = 5 years Let…

Q: Consider two 1-year loans with a principal of $1 million and a default probability of 2% each.…

A: To compute the 1-year 99% Value at Risk (VaR) and Expected Shortfall (ES) of a single loan, we need…

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: 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: What would the loan payment amount and the interest payed for Kevan’s loan be if the PV=8500,…

A: The term loan payment amount refers to the total amount paid by an individual to pay off the loan…

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…

Q: Use the following information to answer the question: Loan amount: $245,000 Loan term: 30 years…

A: Calculate the rate of interest keeping the same monthly instalments, tenure, however simply changed…

Q: If an electric appliance present worth is P 11,712 and is being paid P 1,636 indefinitely, calculate…

A: Perpetuity means infinite no. of payments of same amount and made in equal intervals. Person can…

Q: 3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present…

A: In this Question we require to calculate the Present Value of Cash flows that we will receive every…

Q: What is the present worth of a future payment of $19,000 in year 7 if the interest rate is 10% per…

A: The present value of a cash flow is the current worth of a cash flow at a certain arte of interest…

Q: Want Correct Answer with calculation and explanation

A:

Q: DF% (Debt financing rate) = 60%; ER (Required rate of return on equity) = 15%; Original Loan =…

A: Capitalization is a rate in evaluating a real estate investment it shows the potential rate of…

Q: b) suppose that the market interest rate is 5%. Calculate the present value of the following. Show…

A: Present Value(PV) is current value of a Future amount. It is calculated by discounting that future…

Q: the following Information Which financing metnod has lowest Ihterest cost? How much interest savings…

A: Given: Loan amount = R2,500,000 Term = 180 days Rate = 8%+2.5% = 10.5%…

Q: 4. If you know the simple interest due on a P10 000 loan, explain how you can use that figure to…

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

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

A: Loan refinance means, take the another loan for the payment of old loan. Before the refinancing, net…

Q: Suppose you want to purchase a $279,000 home, and you have the required $62,000 down payment in…

A: Determine the payments of the loan using the Excel PMT function with the following inputs: RATE = 4%…

Q: 3a)A loan of £16,000 is repaid by annual payments of £1,500 each at the end of the year. How long…

A: Step 1 A balloon loan is a type of loan structure where only a small portion of the principal…

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.