You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year mortgage loan to you for the remainder. Assume an annual interest rate of 5% and monthly payments. What is your monthly payment? Use the $ sign and round to the nearest dollar.

Q: You want to buy a $183,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The down payment is the amount of cash paid while purchasing the home. The down payment decreases…

Q: a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the…

A:

Q: You need a 30 year fixed rate mortgage to buy a new home for $400,000. Your mortgage bank will lend…

A: Mortgage/ Borrowings Borrowings are the loan which is taken by the individual to meet its financial…

Q: You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: We have a mortgage transaction on a home. We have to find some amounts based on the mortgage.

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

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: ou can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30…

A: When we make a mortgage payment we pay fixed monthly amounts as payments towards the mortgage.…

Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is…

A: The present value of money is the discounted value of future cash flows. The future value is the…

Q: You plan to purchase a $390,000 house using either a 30-year mortgage obtained from your local…

A: The question is based on the concept of Financial Management.

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Monthly Loan Payment = PV*(r*(1+r)n)((1+r)n-1)  where: PV is the present value of the loan r is the…

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: What is the payoff amount for the loan?

A: Present value illustrates the current value of a sum of money that will be received or paid in 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: A friend asks to borrow $53.00 from you and in return will pay you $56.00 in one year. If your bank…

A: Present value refers to the discounted value of future cash flows.future value is the compounded…

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: You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over…

A: Given: Loan Amount $10,000Annual Nominal Interest Rate 9%Number of Payments = 5 years * 12 months60…

Q: You want to purchase a house valued at $200,000.  After a downpayment, you can finance the house…

A: Value of the house = $200,000 Number of years of mortgage = 20 Number of periods (n) = 20*12 = 240…

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: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: The monthly loan payment can be calculated by using the excel formula ''=PMT''Effective Annual Rate…

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 borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: You bought a house with a $378016 mortgage that you will pay off over 26 years.  Given your credit…

A: When buying big ticket items like a house we do not have the financial capability to pay for the…

Q: You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage…

A: The long-term loan that is taken by an individual person or an organization for the purchase of a…

Q: ut an $8,000 car loan that calls for 7 annual payments of $2,400 each.  What is the interest rate?

A: Annual payments are made for payment of loan which carry the interest and payment of principal…

Q: Suppose that you borrow $20,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12

Q: Suppose you have good credit and can get a 30 year mortgage for $100,000 at 5%.  What is your…

A: Amount of Mortgage (pv) = $100,000Time Period = 30 yearsNumber of Payments in a Period = 12Total…

Q: Suppose your gross monthly income is $5,200 and your current monthly payments are $425. If the bank…

A:

Q: You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: a) Hence, the size of loan is $166,791.61. b) Hence, the total money to be paid is $360000.

Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…

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 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 want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Compound = n = Monthly = 12Present Value = pv = $25,000Time = t = 5 * 12 = 60Interest Rate = r = 9 /…

Q: You plan to purchase a $310,000 house using a 15-year mortgage obtained from your bank. The mortgage…

A: MS-Excel --> Formulas --> Financials --> PMT

Q: First bank offers you a car loan at an annual interest rate of 10% compounded monthly. What…

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.