Amos takes out a 25-year repayment (amortising) mortgage of £100,000 at an annual interest rate of 6% to buy a home. He does not want to have to pay the mortgage for 25 years and intends to pay the mortgage off early by simultaneously investing £9,000 in an investment product that pays a compound annual rate of interest of 4%. At the end of which year will Amos be able to pay off all the outstanding mortgage

Q: ohn will have to wait three years to receive an inheritance. After the three years, he will receive…

A: given, semi annual payment for deferment period = 3 years Interest conversion period per year =2…

Q: George buys a car every 6 years for P18,000. He trades in his current car to count as the 20%…

A: Given information: George: Price of car : 18,000 Down payment : 20% Interest rate : 12% Time period…

Q: ade a 20-year retirement plan and according to his plan, he aimed to withdraw 6000 TL at the end of…

A: Annuity grow by some constant amount of gradient and due to this growth amount grow much amount.

Q: Rhett is about to begin college (4-year) and has received a 10-year $7,500 Federal Direct…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: What will the remaining balance on their mortgage be after 5 years?

A: Mortgage: It is referred to as credit or loan used by the borrower to buy a house, land, or other…

Q: Mrs. Lazada is convince to invest to an insurance company with 4% interest compounded annually and…

A:

Q: Andy takes out a 15-year mortgage of 125000 dollars to purchase a home. If the interest rate is 6.9…

A: 125000Loan amount (PV) = $ 125000 125000 Number of monthly payments (M) = 180 Annual interest rate =…

Q: Jake Werkheiser decides to invest $8000 in an IRA at the end of each year for the next 6 years. If…

A: It is an ordinary annuity because periodic payments are made at the end of the period that is at the…

Q: Trish invests $6,000 in her IRA in a bond trust that pays 11% interest compounded semiannually. Sean…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Harvey and Esmeralda's combined gross income is $75,000, and their monthly consumer debt is $558.…

A: Monthly payment is calculated by EMI formula, where the present value is loan. r is interest rate…

Q: Patty Stacey deposits $2000 at the end of each of 5 years in an IRA. If she leaves the money that…

A: Time value of money states that the amount now is more valuable than the equivalent amount in the…

Q: John House has taken a 30-year, $250,000 mortgage on his house at an interest rate of 6% per year.…

A: If an individual or company has insufficient of funds then, the option for mortgage is available. We…

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Given: Cost of house = $930,000 Down payment = 30% Interest rate = 2.19% Years = 20

Q: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: your sister bought a condominuim unit for 9,300,000 peso through a condominium loan which she avaied…

A: The monthly amortization is the payment that has to be paid or received at the end of every month.

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

Q: Chuck Ponzi has talked an elderly woman into loaning him ​$35,000 for a new business venture. She​…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: Alfred Smith wants to purchase life insurance that will guarantee his family $50,000 (in R-dollars)…

A: Given information: Amount of insurance is $50,000 Interest rate on corporate bonds is 8% Inflation…

Q: Craig decides to purchase a property that has been valued at $480,000. He has $90,000 available as a…

A: Monthly payments is the annuity amount for the loan borrowed at given interest rate and time period…

Q: David Abbot is buying a new​ house, and he is taking out a 30​-year mortgage. David will borrow…

A: Taxation refers to the imposition of compulsory financial obligations by the government on…

Q: Charles wants to retire in 17 years. At that time he wants to be able to withdraw​ $22,000 at the…

A: Here, Retirement will be in 17 years Amount withdrawn is $22,000 Time duration of withdrawals is 19…

Q: Bill and Kim Johnson are purchasing a house for $263,000. Their bank requires them to pay a 20% down…

A: A mortgage refers to a loan used to buy or maintain and repair a building, land, or other real…

Q: Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from…

A: annual rate = (1+ 12%/2)^2 - 1 = 12.36% Present value of the debt after making 4000 payment =…

Q: Lia plans to buy a house for Php 157,950. She wants to make a down payment of Php 24, 937 and to…

A: Mortgage- A mortgage is a sort of loan used to buy or maintain tangible assets such as a home,…

Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…

A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…

Q: Curtis buys a piece of commercial property for $230,000. He is offered a 20-year loan by the bank,…

A: Given, Price of property is $230,000. Term of loan is 20 years. Interest rate is 9% per year.

Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: How much should Mr. Reyes deposit each year

A: An annuity is a fixed amount that is deposited by an investor over a certain period at a fixed…

Q: Kenneth is expected to receive an inheritance of about $250,000 from his grandmother's estate in a…

A: A borrower pays to the lender the interest and original sum borrowed in the form of regular…

Q: Frank buys a house at age 48 for $600,000 by making a $170,000 down payment and securing a 30-year…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Aziz is planning to attend college when she graduates from high school four years from now. She has…

A: Periodic Amount = 3570+5550 = 9120 Interest Rate = 8.5%/2 = 4.25% per semi annual period Time Period…

Q: Felix is purchasing a brownstone townhouse for ​$2,300,000. To obtain the​ mortgage, Felix is…

A: Downpayment is the amount paid in advance during the purchase of any asset or property. Formula is…

Q: Tom Burke bought a home in Virginia for $160,000.  He puts down 25% and obtains a mortgage for 30…

A: Home cost = $160,000 Down payment = 25%*$160,000 = $40,000 Mortgage period = 30 years  Interest rate…

Q: Seven years ago, lan purchased a $265,000 home with a 30-year mortgage at 3.5%. Having recently lost…

A: Mortgage payments for a loan borrowed is paid by equated monthly instalments i.e. a instalment for…

Q: Sarah secured a bank loan of $200000 for the purchase of a house. The mortgage is to be amortized…

A: Excel Spreadsheet: Excel Workings:

Q: Marcus bought a luxury car worth P2,000,000. He then decides to pay in a 6 year long installment…

A: Financing the purchase of certain high-priced products is a common practice of purchasers.…

Q: Garrett and Erin are borrowing $170,000 to purchase a new home. They have been approved for a…

A: Using the PMT function in excel

Q: Lucky took out a $289,000 25-year mortgage at an APR of 4.85%.a. What is the monthly payment?b. What…

A: Using excel PMT function

Q: Sarah secured a bank loan of $190,000 for the purchase of a house.  Themortage is the amortized…

A: Excel Spreadsheet: Excel Workings:

Q: Josiah is considering using his lottery winnings of $900,000 to buy a house. He nust first pay off…

A: Lottery amount = 900000 Debt = 300000 House worth = 700000 Down payment = 35% Year = 25  Percent =…

Q: Patty Stacey deposits $2000 at the end of each of 5 years in an IRA. If she leaves the money that…

A: If a person is depositing payments to the accounts on a regular basis then, the future value is…

Q: Maricar bought a split type inverter aircon which costs P33,500 in an installment basis . How much…

A: It can be calculated using rate formula in excel. =RATE (nper, pmt, pv, [fv], [type], [guess])…

Q: Jack Bond plans to move into a rented flat in Melville in 8 month’s time. The owner of the flat, Ms…

A: The future value of a sum shows an amount to be received or paid in the future. It shows the present…

Q: In purchasing a lot, Jason agrees to pay $10,000 cash and $5,000 at the end of each three months for…

A: The value of the debt will be equal to the present value of periodic payments plus the cash paid…

Q: A woman deposits $12,000 at the end of each year for 15 years in an investment account with a…

A: The question is based on the concept for calculation of the future value by use of compounding…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.