A P2000 mortgage was specifically built for four years at a rate of  simple interest of 8% . The mortgage was extended for a further three years, with out any interest, for a total of four years. The interest rate was set at 10% compounded semi-annually at the end of this period. In the first four years, how much should the borrower pay and  How much should the borrower pay at the end of 7 years?

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A: The series of payments discussed here is a form of annuity wherein an equal payment is made each…

Q: A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year.…

A: The answer for the opinion based question and relevant explanation are presented hereunder : Present…

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

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A: a) Computation:

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

Q: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is…

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

Q: 1. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

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A: Loan is an agreement between lender and borrower where lender gives lump-sum money to borrower in…

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A: Loans are paid by the equal monthly payments that carry the payment for interest and payment for…

Q: A loan is amortized over 7 years with monthly payments at a nominal interest rate of 5% compounded…

A: The series of cash flows given here is a form of annuity with growth. However, the growth rate here…

Q: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is…

A: Given: Years =30 Loan = $200,000 Rate caps = 3/2/6 Start rate = 3.50%

Q: Kandy is financing a $335,000 mortgage for 30 years at a fixed rate of 7.45% what is the total cost…

A: A mortgage loan is a special loan offered by financial institutions to the borrower to purchase a…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the first…

A: Answer: Year payment {(1+i)^n-1/i} Uniform payment 1 5000 1.00 5000.00 2 4500 2.05 9225.00…

Q: A mortgage for $100,000 is made with initial payments of $500 per month for the first year. The…

A: Given: The mortgage is $100,000 The initial payment is $500 The rate of interest is 9%

Q: lan has a mortgage of $458,000 to be repaid by end of month payments with an interest rate at 4.16%…

A: A mortgage loan is a case of amortization loan, such loan is paid back in an equal periodic…

Q: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is…

A: An adjustable-rate mortgage (ARM) is a mortgage in which the interest rate on the outstanding amount…

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A: Time value of money concept is used for calculation of monthly instalments and calculation of number…

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A: It is assumed that the monthly payments made initially are at a rate of 8.4% compounded…

Q: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is…

A: An adjustable-rate mortgage is a house loan with a variable interest rate (ARM). An ARM's initial…

Q: The monthly payments for the first three-year term of a $440,000 mortgage loan were based on a…

A: monthly payment (pmt) formula: pmt =p×rm1-1+rm-m×n where, p= loan maount r=rate m=frequemcy of…

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A: The term of the mortgage can be found using the NPER function in excel.

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A: Installment Loan relates to giving money to prospective borrower in aggregate or lump-sum but…

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A: An rate of interest swap is Associate in Nursing over-the-counter spinoff go for that counterparties…

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A: Here, Value of Loan is $2,000,000 Annual Interest Rate is 4.125% Time Period of Loan is 30 years…

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A: Given, The mortgage is $95000 Rate is 7.2% compounded annually Term is 25 years.

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A: Loan: When you get a loan, the repayment process will be spread out over a longer period of time and…

Q: A reverse mortgage is made with a balance not to exceed $250,000 on a property valued at $600,000.…

A: Reverse mortgage- Under reverse mortgage, the homeowner is not required to make any loan payment ,…

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A: Sometimes the lenders allow to pay annual payment and some lump sump payment at the end of mortgage…

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A: Mortgage means amount which is borrowed by external sources to meet financial obligation or purchase…

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A: Loan amount = $ 89,000 Interest Rate = 8.3% Monthly Interest Rate = 8.3% /12 = 0.692% Number of…

Q: A loan of $ 1,000 is being paid with annuities of $ 80 at an interest rate of 5. One year after the…

A: In this problem you have to find out present value of payment paid and balance payment.

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A: Loan Amortization: The process of amortising a fixed-rate loan into equal instalments is known as…

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A: Amortization is an accounting procedure that reduces the book value of a loan or intangible asset on…

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A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…

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A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

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A: A mortgage loan is considered a  secured loan where funds are provided are given to the borrower…

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A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: A mortgage for a condominium had a principal balance of $48,400 that had to be amortized over the…

A: Monthly payment refers to the amount paid every month for a particular period of time up to the…

Q: A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: Loan amount (L) = P 30000 Total payments (n) = 10 r = 12% per annum = 6% semiannually Let semiannual…

Q: You purchase a home and take on a $600k mortgage. The amortization period of the loan is 20 years,…

A: Here, Loan Amount is $600,000 The amortization Period is 20 years APR is 8% compounded Quarterly…

Q: at the end of

A: Under Scenario A Interest Schedule Under Different Scenario Year Opening Balance Interest at…

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.