A family has a $121,857, 15-year mortgage at 7.8% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage payment each month starting with the very first payment. How long will it take the family to pay off the mortgage? How much interest will the family save?

Q: You overhear your parents say that their mortgage payments are $1875/month and that they have 9…

A:

Q: The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of 6.8%.…

A: The question can be solved in excel as follows:

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

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A: PITI payment : It refers to mortgage payment made by an individual and such payment includes loan…

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A: Value of home =$400,000 Interest Rate (r) = 3.5%/12 = 0.291667% Years = 30 Terms(n) = 30*12=360 Let…

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A: Mortgage amount = $98500 Rate = 8% Period = 15 years Property taxes = $3700 per year Insurance…

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A:

Q: You have just purchased a home and taken out a $500,000 mortgage. The mortgage has a 30-year term…

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A: Formula to calculate monthly payments PMT=PV x i x (1+r)n(1+r)n-1 Where, PMT = Monthly payment n =…

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Q: find the monthly payment and total interest paid (B) suppose the family decides to add an extra $100…

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A: Amount of Loan = $800000 Years = 20 Terms(n1)=20*12 =240 Terms Remaining After 17 years = (20-17)*12…

Q: A family has a $95,877, 25-year mortgage at 5.1% compounded monthly (A) Find the monthly payment and…

A: Using the PMT function in excel

Q: James has a mortgage of $94,500 at 8% for 15 years. The property taxes are $3,900 per year, and the…

A: Given, Mortgage amount = $94,500 Interest rate = 8% Taxes = $3,900 Insurance premium = $754.50

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A: A loan represents the borrowings that are taken by an individual or corporation from a bank or any…

Q: James has a mortgage of $84,500 at 4% for 15 years. The property taxes are $3,700 per year, and the…

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A: Using excel PMT function

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

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A: Solution:- Given, James has a mortgage = $86,500 at 8% for 15 years. The property taxes = $3,900 per…

Q: After making payments of $917.10 for 4 years on your 30-year loan at 8.1%, you decide to sell your…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

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…

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.