You are buying a house for $150,000.00 with a downpayment of $30,000.00. The loan will be paid back over 30 years with monthly payments of $600.92. If the interest rate is 4.4% compounded monthly, what would the smaller concluding payment

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A: in this we have to calculate present value FACTOR and than find out monthly payment.

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A: Firstly, calculating PMT with annual compounding:

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A: Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

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A:

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.