Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…
A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…
Q: You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year…
A: Here, Value of Home is $200,000 Down payment is $20,000 Time Period of Loan is 20 years Interest…
Q: Suppose you borrowed $14,000 at a rate of 9.7% and must repay it in 5 equal installments at the end…
A: Amount of interest payable in 1st year will be calculated on the total amount
Q: Suppose your gross monthly income is $5,500 and your current monthly payments are $575. If the bank…
A: Maximum monthly payment = (Gross monthly income *Allowable % for monthly payments)- Current monthly…
Q: You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year…
A: Given:
Q: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…
A: Computation as follows:
Q: Suppose you have borrowed $12,000 from a bank with the interest rate of 11.5%. Your monthly…
A: The company needs to pay interest on the interest rate over a period of time to the lender.
Q: You invest $ 1.000 in a bank account to buy a house at annual interest rate 14 per year, compounded…
A: Present Value (Investment in bank)= $1,000 Annual Interest rate (r)= 14% per year compounded monthly…
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: Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent,…
A: We use NPER function to calculate monthly payments (in financial calculator and excel)
Q: You want to buy a $170000 home. You plan to pay $51000 as a down payment, and take out a 15 year…
A: Given:
Q: Suppose a man can afford monthly car payments of $380 per month, and his bank is offering a…
A: We need to use loan amortization formula to calculate amount of loan that can be afford Loan…
Q: How much money was your existing mortgage loan for? suppose that 10 years ago you bought a home for…
A: Given information: Mortgage bought for $150,000 Down payment is 10% Interest rate is 9% Number of…
Q: If you make monthly $500 deposits into your investment account paying 9.58% interest annually, how…
A: Interest is an amount which is received on the deposited amount for the period. It increases the…
Q: Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the…
A: The term mortgage can be defined as the contract between two parties namely lender and borrower,…
Q: Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the…
A: Mortgage loan: Providing the lender with an immovable asset, such as a home or commercial property,…
Q: You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year…
A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three (as per…
Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: What is the cost of two points on the mortgage?
A: Information Provided: Selling Price = $125,000 Downpayment = 20% or $25,000 Loan amount = $100,000…
Q: ut an $8,000 car loan that calls for 7 annual payments of $2,400 each. What is the interest rate?
A: Annual payments are made for payment of loan which carry the interest and payment of principal…
Q: Suppose that you borrow $20,000 for four years at 8% toward the purchase of a car. Find the monthly…
A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12
Q: 1. A man has a loan of 50,000 in a bank that gives 12% simple interest. How much is the interest if…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments. If the interest rate…
A: Number of quarterly payments (n) = 10 Annual interest rate = 10% Quarterly interest rate (r) = 10%/4…
Q: Find the monthly amortization of the loan.
A: Monthly Amortization: It refers to the monthly payments made to the lender by the borrower for…
Q: The annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to…
A: Maximum amount to borrow = Remaining balance for monthly payments/ current mortgage rate
Q: If you want to have $22,431 in fifteen years, how much do you need to deposit in a bank account…
A: The deposit required to be made today can be calculated as the present value
Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…
A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…
Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 4% interest. How…
A: Using excel PMT function
Q: maximum loan
A: Loan amount refers to the amounts which a person borrowed at any given time under the mortgage. It…
Q: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…
A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…
Q: Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but…
A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…
Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…
A: Negative amortization is where the principal to be paid increases due to non payment of interest due…
Q: Suppose I have a balance of $4500 on my Bank of America credit card. Assume the interest rate on my…
A: Payment is made monthly, hence it is a question of annuity. Annuity means number of payments which…
Q: You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal…
A: Monthly Payment: It is the amount that is paid at the end of each month to the lender of the bond by…
Q: Suppose you make a down payment of 6% of $27,600 for a car and finance the rest at 1.5% compounded…
A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…
Q: You want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year…
A: Dear student we need to use excel to solve this problem. The formulas that you need to understand to…
Q: Suppose you purchase a home and obtain a 30-year fixed-rate loan of $145,000 at an annual interest…
A: Time Period = 30 years*12 = 360 months Loan Amount = 145,000 Interest% = 7.5%/12 = 0.625%
Q: uppose you buy a home and finance $285,000 at $2,233.17 per month for 30 years. What is the amount…
A: Interest paid = total payment - financed amount
Q: A loan used for buying a home is called a mortgage. The Fortunato family is borrowing $430,000 to…
A: Given, {P} Amount = $ 430,000 {R} Interest = 3.55% ~ {T} Time period = 30 years = 30*12 = 360…
Q: If you deposit $20,000 in a bank account that pays 5% interest annually, how much will be in your…
A: The provided information are: Present value (PV) = $20,000 Rate of interest (r) = 5% = 0.05 Time…
Q: Suppose you take a 15-year mortgage for a house that costs $253,368. Assume the following: The…
A: To determine the minimum monthly salary.
Q: How much is your monthly payment? use monthly compunding formula
A: Answer:
Q: Assume you borrow $200,000 from a bank today to buy a house at 4% interest for 30 years with monthly…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Assume you just deposited $1,000 into a bank account. The current real interest rate is 2% and…
A: Given data; Deposit amount = $1000 real interest rate = 2% inflation rate = 6%
Q: You want to buy a $212,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…
A: a) Amount of down payment = cost of house * % of down payment
Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…
A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…
Q: You borrow $280,000 to buy a house. The mortgage rate is 4.5% and the loan period is 25 years.…
A: Given information:
Q: You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal…
A: It can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv], [type]) Rate The…
Suppose you have borrowed 72,000 as a mortgage loan on your house. The interest rate is 5%. The bank has calculated the monthly payment to be $515.83. How long will it take you to pay the loan?
Step by step
Solved in 2 steps with 1 images
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Suppose you have borrowed 72,000 as a mortgage loan on your house. The interest rate is 3%. The bank has calculated the monthly payment to be $515.83. How long will it take you to pay the loan?
- Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60 months. What is the interest rate (APR) for the loan?uppose you have borrowed 72,000 as a mortgage loan on your house. The interest rate is 6%. The bank has calculated the monthly payment to be $515.83. How long will it take you to pay the loan?You borrow $280,000 to buy a house. The mortgage rate is 4.5% and the loan period is 25 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you pay?
- You get a personal loan from the bank for $10,500, the interest rate you are charged is 8% for two years. What interest do you pay the bank?You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent, with interest prepaid (a discount interest loan). Also, assume that the bank requires you to maintain a compensating balance equal to 10 percent of the initial loan value. What effective annual interest rate are you being charged?
- The bank will loan you $175,000 to buy a house. The loan terms are as follows; 30 year mortgage with monthly payments and a 6.9% annual interest rate (monthly compounding). What will your monthly payments be to the bank? If you will pay $1500 each year in taxes, $1200 in insurance, and $400 in HOA fees, how much will your total mortgage payments be each month? How much interest will you pay over the 30 year life of the loan?Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the purchase price and take a 25 year mortgage for the balance. a. What is your down payment? b. What is your mortgage amount? c. What is the total interest charged over the life of the loan if your monthly payment is P2,200? Solve manually in a paper.You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big of a loan can you afford? How much will you pay the loan company? How much of that money is interest?