You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly. What will be the monthly loan payment? What will be the loan’s EAR?

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: You want to buy a $190,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: According to Bartleby guidelines, if a question involves multiple sub-parts, then 1st sub 3 parts…

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: 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: 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 ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing…

A: Mortgage loans are paid by equal and fixed monthly payment that carry the payment of interest and…

Q: You plan on borrowing in order to buy a condo. You want to borrow for 30 years and make monthly…

A: Loan amount refers to an amount that is borrowed by the borrower from the lender at a specified rate…

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 $260,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: a) Loan Amount = Total price of house - Down payment  = 260,000 - (260,000 * 5%) = 260,000 - 13,000…

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: 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: 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 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: 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: a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction…

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

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: You want to buy a car. The loan amount will be $29,000. The company is offering a 4% interest rate…

A: Annuity is a series of equal periodic payments for a specified period.With periodic rate (r), period…

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

A: EAR: EAR stands for Effective Annual Rate, and it is the interest rate. Compounding periods are…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: The loan is an agreement between two parties where an amount is forwarded on a promise of repayment…

Q: You want to buy a car. The loan amount will be $25,000. The company is offering a 4% interest rate…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

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 want to buy a $248,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Loan: It represents the amount borrowed by the borrower for the purpose of purchasing assets like…

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've just bought a new flat-screen TV for $4000 and the store you bought it from offers to let you…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: Monthly loan payment can be calculated by using excel function of PMT-Excel function of PMT…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

Q: Suppose you intend to purchase a house worth $239,900 with a 30-year fixed rate mortgage. You have a…

A: Solution: When an amount is borrowed, it can either be repaid as a lump sum payment or in…