You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,450, but no more. Assuming monthly compounding, what is the highest interest rate you can afford on a 60-month APR loan?

Q: You would like to buy a new car and will need to borrow $25,000 to do so. Your loan will be repaid…

A: EMI or monthly payment of loans is the payment which the borrower makes every month towards loan…

Q: You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The…

A: Loan is a contract between lender and borrower where lender provide funds to borrower which repaid…

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

A: Given:

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

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: ou borrow $333,000 to purchase a home. Your mortgage requires monthly payments over the next 23…

A: Loans are paid in equal monthly installments and these carry the payment for interest and payment…

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: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

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: You want to borrow $44,965 from your local bank to buy a new sailboat. You can afford to make…

A: Solution Given Amount to be borrowed $44965 Monthly payments $1140 Number of period…

Q: Big Dom's Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: When we take a loan from banks they charge us interest on that loan. Similarly when we borrow money…

Q: A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly…

A: Formula EMI = PV/[1-(1+R)-N]/R Where EMI - Equal monthly instalment  PV - Loan amount i.e. $10,742 R…

Q: are buying a house and will borrow $197,000 on a 25-year fixed rate mortgage with monthly payments…

A: Mortgage loans are paid by monthly payments and these monthly payment carry the payment for interest…

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: You need a 15-year, fixed - rate mortgage to buy a new home for $230,000. Your mortgage bank will…

A: A balloon payment is a significant, lump-sum amount due at the conclusion of a loan term, following…

Q: You are offered an add-on loan for $4,500 at 18% for 5 years. What is the monthly payment? What is…

A: Hello, I am only answering first question as per the policy and if you want others to be answered…

Q: You are considering buying a house. The home is currently listed for $750,000. Terms for the loan…

A: To calculate the monthly mortgage payment, use the formula for a fixed-rate mortgage:Where:M =…

Q: You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend…

A: The lum sump that has to be paid at the end of the mortgage period for settling the loan at given…

Q: You have two monthly car payments of $400 each left on your car. If the interest rate is 0.75…

A: Monthly Payment (PMT) = $400Monthly interest rate (r) = 0.75% or 0.0075Number of periods (n) = 2…

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: have an outstanding student loan with required payments of 550 per month for the next four years.…

A:

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: 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 have an outstanding student loan with required payments of $500 per month for the next four…

A: given PMT = 500 r= 9/12 = 0.75% per monthn=12*4 = 48present value of the payment PV =…

Q: You are considering buying a house.  The home is currentlylisted for $750,000.  Terms for the loan…

A: The following is the excel formula used for the calculation:

Q: You want to borrow $77,000 from your local bank to buy a new sailboat. You can afford to make…

A: Compound = Monthly = 12Present Value = pv = $77,000Monthly Payment = p = $1300Time = t = 78

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. YOL mortgage bank will lend…

A: Balloon payment is the single large payment that is made at the end of loan period to pay all…

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 have an outstanding student loan with required payments of $600 per month for the next 4 years.…

A: Loans are paid in equal monthly payments and these monthly payments carry interest and loan…

Q: You decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at…

A: The amount that can be borrowed should equal the present value of future payments. This is based on…

Q: After making payments of $901.10 for 6 years on your 30-year loan at 8.9%, you decide to sell your…

A: Monthly payment (C) = $901.10 Monthly interest rate (r) = 0.00741666666666667 (i.e. 0.089 / 12)…

Q: You currently owe $118,580.44 on your mortgage loan, with an interest rate of 6.8%. Interest rates…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: You have a balance of $5,000 on your credit card.  The interest rate is 15% per year.  You want to…

A: Balance in credit card = $5,000 Interest Rate(r) = 15%/12= 1.25% per month Years = 4 Terms(n) = 4*12…

Q: You can afford to pay $560 each month for a new car. The dealership offers you a 5-year loan at 6.4%…

A: Given:M = $560 (the amount you can afford each month) r = 6.4% per year = 6.4/12 = 0.5333% per month…

Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…

A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: When applying for a mortgage, find one that allows you to contribute more money than the required…

A: given, loan amount =$152,700 no of year =30 interest rate =3.89%