0) The Jacobs family is planning to buy a home. They have some money or a down payment already. They see a home they like and compute tha hey would need to borrow $213,000 from a bank over a 30-year period. he APR is 6.75%. (a) What is the monthly payment, to the nearest cent? b) What is the total of all of the monthly payments over the 30 years? (c What is the total interest for the 30 years? (Section 8-3) *

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

Q: Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000…

A: In this problem, a person purchases a home for $350,000 and make down payment of $50,000. The…

Q: Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers…

A: The maximum amount that the bank will lend will be the present value of the monthly payments that…

Q: The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: e Flores family wants to save money to travel the world. They plan to invest in an ordinary annuity…

A: Monthly deposit made over a period of time grows into large amount due to power of compounding.

Q: A while ago, a couple purchased a home with a sales price of $810,000, making a 5% down payment and…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…

A: Solution Firstly lets calculate the annual installment Annual installment          = loan amount/…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Amount to be financed = Cost of house - Down payment = $415,000 - ($415,000*20%) = $332,000 Nos of…

Q: eanne and Harold Kimura want to set up a TDA that will generate sufficient interest at maturity to…

A: Annuity means finite no. of payments which are same in size and made in equal time intervals. Person…

Q: . Suppose you want to purchase a home for $440,000 with a 30-year mortgage at 4.24% interest.…

A:

Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…

A: Given:

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

Q: You are buying a home that cost $110,000 and are putting 20% down to avoid PMI. What would their…

A: Cost of house is $110,000 , down payment is 20% of cost = $22000. Therefore, loan amount is $88,000.…

Q: You have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he…

A: in this problem we have to calculate quarterly interest rate and from that we can get present value.

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Amount to be financed = Cost of house - Down payment = $415,000 - ($415,000*20%) = $332,000 Nos of…

Q: Amanda is going to invest to help with a down payment on a home. How much would she have to invest…

A: The concept of the time value of money states that the same amount of money has more value now than…

Q: Bob and Pat want to purchase a vacation home in ten years and need $45,000 for a down payment. How…

A: Time value tells that money received today has more value than that of receiving exact value later…

Q: Larry wants to have $500,000.00 in 20 years. He found an annuity that is paying 3% with monthly…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: The Keller’s discovered that they could reduce their mortgage interest rate from 10% to 4%. The…

A: Given information: Current mortgage balance is $277,000 Closing costs are amounted to $3,000 Number…

Q: When Maria Acosta bought a car 2 1/2 years ago, she borrowed $10,000 for 48 months at 7.2%…

A: Compound interest refers to the amount to be paid on the borrowed amount for a definite period. It…

Q: To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67%…

A: Using excel PV function

Q: Suppose a newlywed couple is planning lo buy a home two years from now. To save the down payment…

A: Computation:

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

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

Q: Your parents buy a new house to downsize. They pay $250,000 and are planning on paying it off in a…

A: Let interest rate implicit in loan = i Present value of installment at i = $250,000 $19,167 *…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out…

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To…

Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

Q: The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly…

A: Computation:

Q: he McBertys have $30,000 in savings to use as a down payment on a new home. They also have…

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

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: Monthly Payment = $2,333

Q: Johnny and Lucy have purchased a home for $365,000. They will need to obtain a mortgage for 85% of…

A: Loan amortization table shows the bifurcation of each monthly payment in the interest payment and…

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…

Q: The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly…

A: FORMULA FOR MONTHLY PAYMENT: PMT = P×rm1-1+rm-m×n p = principal r= rate of interest m = frequency of…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.14% interest. Suppose…

A: We can determine the monthly payments using the PMT function in excel. The syntax is: PMT (rate,…

Q: A while ago, a couple purchased a home with a sales price of $780,000, making a 5% down payment and…

A: Monthly paymentThe minimum value that is needed to be paid each month by an individual for a stated…

Q: Assume that you plan to buy a condo 5 years from now, and you estimatethat you can save $2,500 per…

A: The question requires to calculate the future value of annual instalments deposited in a bank. We…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

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

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Present value: The money having at present has more value than receivable in future. Formula: FV =…

Q: You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Cost of home = $168000 Down payment = 5% Loan period = 30 Years Interest rate = 6.95%

Q: To save for a down payment on a home, suppose you decide to invest in an annuity that pays 7.0%…

A: This is the question of annuity. Annuity is the stream of constant cashflow occurring at regular…

Q: Jane wants to borrow $100,000 from the bank for up to 3 years at an APR of 8.5% with interest…

A: Interest is an extra amount which borrower has to pay on the deposited amount for the period. It is…

Q: Mark and Natalie want to buy a house selling for $120,000. They will put $20,000 down as a down…

A: Part (a): Calculation of monthly payment: Answer: Monthly payment is $561.53

Q: The Nelson family wants to save money to travel the world. They plan to invest in an ordinary…

A: Annuity means a series of finite number of payments which are the same in size and occurred at equal…

Q: McBertys have $20,000 in savings to use as a down payment on a new home. They also have determined…

A: Given,  Down payment is $20,000 Payment is $1500 to $1800 Rate is 11% Term of loan is 30 years

Q: Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house…

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

Q: Suppose a young newlywed couple is planningto buy a home three years from now. To save thedown…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: A man wants to buy a $33,000 car.  He will put 20 % down and finance the rest over 5 years.  How…

A: Given information: Purchase price = $33,000 Loan = $33,000 -20%×$33,000 = $26,400 Term = 5 years…

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.