1. Renalda has purchased a condominium and received a mortgage loan in the amount of $50,000 for 25 years. Her monthly payments on this loan are $510.55. In the first three months of this mortgage, how much of this payment goes to interest and how much to principal? The interest rate on this loan is 11.9% per year.

Q: Amy received a 25 year loan of $325,000 to purchase a house. The interest rate on the loan was 2.20%…

A: Given, The loan amount is $325,000 Term of loan is 25 years Interest rate is 2.2% compounded semi…

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: This question provides that the interest rate goes down to 5.50 per year from 6.0% per and it is…

Q: Jeronica and Sandy have decided to purchase a cooperative apartment together. They have received a…

A: Given: Monthly payment = $592.40 Years = 30 Interest rate = 16.2% Loan amount = $42,500

Q: Fidelio has purchased a condominium for $39,750, of which 80% is to be financed by a mortgage.…

A: given, price = $39,750 loan = 80% p= $39,750 x 0.8 = 31800 pmt = $395.80 rate = 14.3%

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

A: Using excel pmt function

Q: What is the mortgage debt ratio for a potential borrower who earns $72,000 per year if she applies…

A: Calculation for mortgage debt ratio are as follows.

Q: Ms. Anderson plans to purchase a home for $300,000. She intends to pay 20% of the purchase price as…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Sandy Kupchack just graduated from State University with a bachelor's degree in history. During her…

A: In the given question, the amount is to be paid quarterly. Therefore, the effective rate to be used…

Q: Tanyarita has a mortgage of $67,500 at 8.5% for 20 years. The property taxes are $2,900…

A: The monthly payment for property tax  = Total due / 6 months   Monthly insurance premium = Total…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $14,000 in student…

A: It can be calculated using following function in excel =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

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

Q: A couple takes out a loan for $350,000 to purchase a house. They get an adjustable rate mortgage…

A: Adjustable- rate mortgage are those mortgages in which interest rate of the mortgage loan keeps…

Q: Dick and Jane Buell have purchased a home for $114,500. They will need to obtain a mortgage for 75%…

A: Price of Home =$114500 Amount Mortgage = 75% of Home Price                                = 75% *…

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: While Mary Corens was a student at the University of Tennessee, she borrowed $11,000 in student…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: William recently graduated from NFA University. While at NFA, William took out 4-23 a $50,000…

A:

Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…

A: A term loan is a form of credit instrument in which money is lent to someone else in exchange for…

Q: Ashea Smith is a 22-year-old senior who used the Stafford loan program to borrow $4,000 four years…

A: The annual payment amount can be calculated. But the first step is to calculate present value of all…

Q: Mye has a 15-year mortgage loan at a compounded annual interest rate of 9.3%. After making annual…

A: Given that: Annual Cash flow=P11600 N=7 Years=7*12=84 Months r=9.3% annually= 0.93/12 Monthly =0.775…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Jason takes out a loan at 10% compounded annually for 7 years. At the end of this period, he pays…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: Kristina has a mortgage of $575,000 through her bank for property purchased. The loan is repaid by…

A: Formulas:

Q: Marcel Thiessen purchased a home for $205,600 and obtained a 15-year, fixed-rate mortgage at 7%…

A: Interest part is the amount of interest payable on outstanding loan balance and principal repayment…

Q: Marcel Thiessen purchased a home for $209,300 and obtained a 15-year, fixed-rate mortgage at 10%…

A: Calculation of Interest and Amount of Principal after first payment:The interest is $1,569.75 and…

Q: Suppose Allison purchases a condominium and secures a loan of P13,400,000 for 30 years at an annual…

A: Loan amount (P) = P 13,400,000 Period = 30  Years Number of monthly payments (N) = 30*12 = 360…

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

Q: Tina deposited $20 in a savings account earning 5% interest, compounded annually. To the nearest…

A: Interest is the amount charged or received for loan taken or investment made. There can be simple…

Q: When Maria Acosta bought a car 2 years ago, she borrowed $12,000 for 48 months at 7.2% compounded…

A: Outstanding loan balance is calculated by present value of monthly payments left to be paid. r is…

Q: When Sara Jean purchased her house 12 years ago, she took out a 30-year mortgage for $220,000. The…

A:

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: After four years in college, Josie owes $104000 in student loans. The interest rate on the federal…

A: Let the amount in federal loans be "$X" , therefore amount in private bank loans would be…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $15,000 in student…

A: Using excel NPER function

Q: Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her…

A:

Q: Ben buys a house. He obtains a $220,000, 30-year mortgage at 5%. Annual property taxes $1,800,…

A: Calculate the monthly instalments as follows:

Q: he annual interest rate on the loan is

A: Interest Rate: It is the rate used to compute the finance charge paid by the borrower for taking a…

Q: three years ago , the Kennedys purchased a house and took out a mortgage of $ 1,000,000 from the…

A: Mortgage: It is the loan that is granted by the lender to the borrower for purchasing a real estate…

Q: Three years ago, the Amouzegars purchased a house and took out a mortgage of $850,000 from the CIBC…

A: Here, Loan Amount (PV) is $850,000 Time period of loan is  25 years Monthly Time Period (Nper) is…

Q: If Martha borrowed $22,000 from Wachovia Bank at 7.5 percent interest for 3 years, the principal…

A: Face value of loan will be present value of loan.

Q: Rebecca Carlson purchases a car for $25,000 and finances her purchase by borrowing the money at 8%…

A: Equated Monthly Installments is one part of the equally divided monthly outgoes to clear off an…

Q: The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal…

A: Here, To Find: Interest paid in month 37 =?

Q: Jose has a 15-year mortgage of $250,000 from his bank. The mortgage calls for equal monthly…

A: A mortgage loan is generally taken to purchase or maintain real estate. The borrower pays the lender…

Q: Maryanne purchases a house for $380,000 and takes a mortage for the full amount. Her mortgage…

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

Q: A couple purchased their home for $280,000. They signed a 30 year mortgage at 5.28% interest…

A: Given: Cost of house = $280,000 Interest rate = 5.28% Period = 30 years Compounding monthly.

Q: Annette has just purchased a new home for $562758. She put 25% down and is paying the remainder off…

A: The present value of the loan is equal to the sum of the present values of all future monthly…

Q: Dominic takes out a 30-year mortgage of 200000 dollars at the interest of 5.76 percent compounded…

A: Loan amount  $2,00,000.00 Periodic interest 0.48% nper (no. of compounding period) 360…

Q: A couple has made monthly payments (of equal size, rounded to the nearest cent) over the past 10…

A: Here, Loan Amount is $64,000 Interest Rate is 5% Compounding Period is Semi Annual i.e 2 Time Period…

Q: 2. Almarie secured a loan amounting to a quarter of a million pesos from a rural bank at 5%…

A: Loan = 250,000 Interest Rate = 5% Annual Compounding N = 5 First Payment in 3 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.