You want to buy a $230,500 home. You plan to pay 20% as a down payment, and take ou 5% for the rest. The bank requires 3 points at closing. (a) How much is the loan amount going to be? $ (b) How much are the closing costs? $ (c) What will your monthly payments be? $ (d) How much will you pay in interest over the life of the loan? $

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 $219,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Given: Particulars Amount Cost of house $219,000 Down payment 5% Years 30 Interest rate…

Q: Suppose you want to have $500,000 for retirement in 20 years. Your account earns 5% interest. a) How…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

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: Today, you borrowed $6,200 on your credit card to purchase some furniture. The interest rate is 14.9…

A: Compound = monthly  = 12 Present value = pv = $6200 Interest rate = r = 14.9 / 12% Payment = p =…

Q: I need assistance to solve this problem: On September 1, 2018, you bought a car for $23,000. You…

A: Calculation of payoff the loan on November 1, 2020:First it is required to calculate the total…

Q: Suppose you lend ​$11,500 to a friend at an APR of 10.00​%. Your friend will pay you back beginning…

A: The periodic payment can be made monthly, quarterly, semi-annually or annually. Periodic payment is…

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 wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are…

A: Borrowings are the loans taken from banks or non-banking financial institutions, to meet its…

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: 15) A car loan of $12,000 is to be repiad in 36 monthly payments of $364.00 each. After 24 payments…

A: a) Calculation of the savings in interest by using the rule of 78 is shown below: Hence, the…

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: 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 to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A woman went to the Beneficial Loan Company and borrowed ST0,000. She must pay $323.53 At the end of…

A: Monthly interest rate can be calculated by excel formula PMT and by IRR formula with series of cash…

Q: You are buying a house that is priced at $200,000. You need to make a 10% down payment, and closing…

A: Closing Costs: When ownership of a piece of property is changed from a seller to a buyer, closing…

Q: Do you want to By A home for $330,000. You plan to pay 33,000 as a down payment and take out a 15…

A: Loan amount is the amount that is borrowed from a financial institution after paying a certain…

Q: Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of…

A: Loans represent the amount provided by the lender to the borrower. The borrower makes periodic…

Q: You want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan…

A: Closing cost is the cost which has to be paid by either seller or the buyer to the government when…

Q: P LIC Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of…

A: A mortgage is a type of loan that is linked to real estate. It is a form of a secured loan on the…

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 decide to purchase a house for $260,000. You have saved money so you are able to do a down…

A: A loan/mortgage indicates any sum borrowed to meet specific funding needs. The funding requirements…

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: Use PMT= PA [-] financed with a 30-year fixed-rate mortgage at 8%. Complete parts (a) through (e)…

A: A mortgage is a loan on a property where the collateral is the property itself.

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: Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest…

A: Effective rate refers to the actual interest rate earned or paid after taking into account…

Q: You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company…

A: The Annual Percentage Yield (APY) is a financial metric that quantifies the annualized rate of…

Q: You want to buy a $215,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: The loan amount represents the money borrowed from a lender, whereas the monthly payment encompasses…

Q: Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly…

A: Loan amount=$15000PMT=monthly payment=500NPER=36Find out period required.

Q: .  You are purchasing a house for $310,000. You plan to take out a 25-year loan to pay for the…

A: a. The monthly payments will be $1812. Note: The calculation has been made on excel.

Q: You have just purchased a car and taken out a $42,000 loan. The loan has a five-year term with…

A: Given Loan taken is $42000 term of loan is 5 years APR is 6.4%

Q: Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The price of a condominium is $127,000. The bank requires a​ 5% down payment and one point at the…

A: Required down payment = $127,000 * 5% = $6350 Amount of Mortgage = $127000 * 95% = $120650 One point…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized…

A: The time value of money (TVM) is a concept in finance that refers to the idea that money available…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 7.9% interest.…

A: Present value of annuity.PV = A*wherePV = Present value of annuityA = periodic paymentsr = interest…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.