You are buying a house and have saved a down payment of $15,000. You can afford a monthly payment of $1200, and the house can be financed at 2.5% for 30 years. Compute the maximum loan amount (MLA), rounding to the nearest cent: What is the maximum purchase price (MPP), rounded to the nearest cent?

Q: You want to buy a house valued at $200,000.  AFter a down payment, you can finance the house with a…

A: The annual percentage rate is the rate earned on the investment or paid on loan over the period of…

Q: You want to buy a $195,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: The Down-payment is the sum of money first paid for something. No interest will be charged on…

Q: Suppose that you decide to buy a car for $26,635, including taxes and license fees. You saved $7000…

A: Car Value = $ 26,635Down payment =$ 7000Loan Amount = Car Value - Down paymentLoan Amount = $ 26,635…

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: Suppose you are buying your first condo for $250,000, and you will make a $7,500 down payment. You…

A: Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1)] Where, P = Principal borrowed =Asset value -…

Q: You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year…

A: Given:

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount = $26,100 Monthly payments = $989 Total finance charges = $9504 Loan period = 36 months…

Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…

A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…

Q: You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the…

A: A mortgage is a type of loan used to purchase a property or real estate. The borrower (homebuyer)…

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: you want to buy a car for $8300 with $360 monthly payments for 4 years, what is the annual interest…

A: Interest rate is the rate which the customer would have to pay on the periodic payment of the…

Q: Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and…

A: The current price of the house is computed by computing the present worth of the house. The formula…

Q: You'd like to purchase a house.  You're monthly take home pay is $4560. You'd like to use one fourth…

A: PMT is the periodic payment, in this case it is paid monthly.

Q: You are buying a house and will borrow $280,000 on a 30-year fixed rate mortgage with monthly…

A: Amount Borrowed $     2,80,000.00Tenure, years30APR4.15%If buy downInterest rate3.75%

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: a $145,000 home. You found a bank that offers a 30-year loan at 3.5% APR. What will be your monthly…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Suppose you want to buy a $144,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A:

Q: Solve the following problems. Round your results to the nearest cent as needed. You need a loan to…

A: P = $24,200 (loan amount),(monthly interest rate),n=6×12 (number of months in 6 years).

Q: Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $8000…

A: Autoloans are now common because they are paid in equal monthly installments and these monthly…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: 1)  Loan Amount = 80% of 415,000 = $332,000.

Q: two choices. Choice 1: 30-year fixed rate at 6 % with closing costs of $1800 and no points. Choice…

A: Housing loans are refer as the amount of money borrowed from financial institution or bank to…

Q: You want to buy a new car. You can afford payments of $250 per month and can borrow the money at an…

A: The term mortgage refers to a type of loan that is for the long term, and it usually has the asset…

Q: You are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55…

A: The time value of money is a concept in finance that recognizes the idea that a sum of money has…

Q: Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $7000…

A: Amortization of a loan refers to the process of gradually paying off a debt or loan over a fixed…

Q: You need $12,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an…

A: Annual loan payment is the amount of loan repayment which are scheduled at regular interval of time…

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: You want to buy a $243.000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

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

Q: You are going to buy a house and borrow $542474 with a 30-year mortgage.  Your interest rate is…

A: The future value concept is widely used in finance and economics, including in the areas of…

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 plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local…

A: Let us dissect the computations and provide a more comprehensive explanation. a. Interest and…

Q: .  You are purchasing a house for $310,000. You plan to take out a 25-year loan to pay for the…

A: a. The monthly payments will be $1812. Note: The calculation has been made on excel.

Q: You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local…

A: Let us dissect the computations and provide a more comprehensive explanation. a. Principal and…

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.