You decide to purchase a 2-bedroom, 1.5-bathroom single family property with a fully. amortizing $285,000 loan at 5.625 percent interest for 20 years. You are considering. monthly versus bi-weekly payments. What is the difference in the loan balance at the end of the 5th year if he decides to make biweekly payments rather than monthly payments?

Q: Mary is buying a town house priced at $360,000.00. Mortgage A calls for her to make equal monthly…

A: Option b: This option is correct. Step 1:We have to calculate the monthly payments with the first…

Q: Frank and Fatima decide they will buy a two-bedroom garden-suite, with a 5750,000 mortgage from…

A: Principal (p)= $750,000 Rate (r)= 2.7% Time (t)= 5 years

Q: A couple buys a $190000 home, making a down payment of 17%. The couple finances the purchase with a…

A: Loans are paid by the equal monthly payments that are paid by the equal monthly installments and…

Q: A couple has decided to purchase a $90000 house using a down payment of $18000. They can amortize…

A: Amortization is a strategy used in accounting to reduce the book value of a loan or intangible asset…

Q: A couple buys a $170000 home, making a down payment of 24%. The couple finances the purchase with a…

A: Purchase price = $170000 Down Payment= 24 % Finance For 15 years Rate = 3.35%

Q: Jen Logan bought a home in lowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Equated monthly installment (EMI):= [P×R×(1+R)n] ÷ [(1+R)n-1]Where,P = Principal = ($110,000-20%) =…

Q: Dan is considering borrowing $489,000 to purchase a new condo. Based on that information, answer the…

A: The question is based on the concept of the mortgage loan. A mortgage loan is a secured loan, which…

Q: Shaun and Kelsey decide they will buy a three-bedroom condo, with a $1,150,000 mortgage from Royal…

A: Shaun and Kelsey decided to mortgage = $1150000 from Royal trust Amortization = 25 years The…

Q: You are about to graduate from blank but you still owe $12,000 for tuition. blank offers you the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

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

Q: Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down…

A: Using Excel PMT function

Q: Mia Sato purchased a new condominium for $225,000.  The bank required a $40,000 down payment.…

A: We need to use mortgage amortization formula below to calculate monthly payment of mortgage.PMT…

Q: A home purchaser need to borrow $500,000 to finance their new home. The buyer believes they will…

A: A borrower can acquire a sort of prepaid interest or fees known as a mortgage point, often referred…

Q: Gerry and Alex decide they will buy a two-bedroom garden-suite, with a $925,000 mortgage from West…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: Mia Sato purchased a new condominium for $225,000.  The bank required a $40,000 down payment.…

A: The first step is to determine the amount of the loan. This is done by subtracting the down payment…

Q: A couple buys a $200000 home, making a down payment of 19%. The couple finances the purchase with a…

A: Solution:- Given, A Couple buys a $200,000 home, making a down payment of 19% The couple finances…

Q: 15 What is their monthly payment? Roune How much will they pay over the cour $ With this payment,…

A: To determine the monthly payments we can use the PMT function in excel.  The syntax is: PMT (rate,…

Q: Martin is buying a house for $325,000 and he has 15% for a down payment. Find the monthly payment…

A: Given:  Price of house = $325,000  Down payment = 15%  Interest rate = 5.75%  Term =30 years    The…

Q: The Simpsons are planning to purchase a new home. To do so, they will need to take out a 30-year…

A: Amortization of a loan refers to the regular and equal repayment of the loan and interest over the…

Q: Your brother is considering the purchase of a home rather than renewing the lease on his two-bedroom…

A: Monthly mortgage refers to an amount that is paid at every month for the repayment of total mortgage…

Q: A couple buys a $190000 home, making a down payment of 23%. The couple finances the purchase with a…

A: Individuals and couples usually take loan when they buy homes because of the fact that houses are…

Q: Hector and Maria purchase their first home for $138,000. They make a 10% down payment and finance…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Rachel and Eddy are buying a home for $875,000 by obtaining a 5-year closed mortgage for $700,000.…

A: Amortization of a loan refers to the systematic payment of the loan at regular intervals. These…

Q: A couple buys $160000 home, making a down payment of 17%. The couple finances the purchase with a 15…

A: Here, Particulars Values Purchase value   $ 160,000 Down payment 17.00% Number of years…

Q: Larry Davis borrows $82,500 at 14 percent interest toward the purchase of a home. His mortgage is…

A: Step 1:Time value of money refers to the concept which states that a sum of money is worth more now…

Q: Use the following information for the next 2 questions Roger buys a house costing $300,000. He puts…

A: Loan amortization refers to the equal and periodic repayment of loan including the interest. The…

Q: A couple buys a $190,000home, making a down payment of 16%. The couple finances the purchase with a…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Your brother is considering the purchase of a home rather than renewing the lease on his two-bedroom…

A: The monthly payment is the payment of the borrowed amount that has to be every month that includes…

Q: (a) Calculate the amount of the annual payment? (b) Create and complete the amortization

A: An annuity is the payment of an amount over a period of time at a fixed interval of time.

Q: A couple plans to purchase a house. The bank requires a 20% down payment on the $470,000 house. The…

A: A mortgage refers to funds borrowed for buying an asset. This amount should be repaid by periodic…

Q: Joe Levi bought a home in Arlington, Texas, for $125,000. He put down 30% and obtained a mortgage…

A: Mortgage is a loam which allows a person to get funds for their home purchase and make a small…

Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: John and Judy Jacobson have purchased a house for $450,000. They are putting 20% or $90,000 down…

A: Compound = Monthly = 12Present Value of Loan = pv = $360,000Time = t = 30 * 12 = 360Interest Rate =…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: The monthly payment on a loan refers to the repayment sum extended by the borrower every month for a…

Q: argaret Foster wants to buy a new camper in 6 years. She estimates the camper will cost $6,400.…

A: Future value refers to the value of a current asset at some future date affected due to inflation…

Q: A couple want to buy a house that costs $542 000. They pay a 20% deposit and borrow the rest of the…

A: House value = $542,000 Loan amount (P) = House value * (1 - Down payment) Loan amount (P) = $542,000…

Q: A couple completely owns one home but is purchasing a second home for $120,000. They will put down…

A: Since more than one question are posted at a time the answer for first question is only provided as…

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.