Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for 30 years with a 3.2% rate monthly with 2 points. If the loan is paid off after 12 years, what is the true rate?

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

Q: Spencer would like to purchase a new car for $12,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function.

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Q: Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His…

A: Solution : Due to averaged Increment in salary was 5% for last several years & interest rate was…

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A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Nick saves $175 per month, deposited directly into his credit union account on payday, the last day…

A: In order to calculate the amount at the end of a specific period of time, the future value of the…

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

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

Q: Joel is considering putting a $2200 laptop purchase on his credit card, which has an interest rate…

A: Monthly payment includes interest payment and portion of principal payment to be paid back. Interest…

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A: Given information: Payment is $800, Purchase price is $8,000 Down payment is $1,000 Number of months…

Q: Alphonse is going to put $2500 in an interest bearing account that pays 3% interest and leave it for…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: t gave her an option to pay P10,000 monthly for 1 year. The first payment is due after 6 months. How…

A: Given : Emma availed a cash loan that gave her an option to pay P10,000 monthly for 1 year first…

Q: Bob and Pat want to purchase a vacation home in ten years and need $45,000 for a down payment. How…

A: Time value tells that money received today has more value than that of receiving exact value later…

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: Hudson would like to purchase a new car for $25,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: Ricardo wants to buy a large fishing boat so that he can go deep-sea fishing. He needs $100,000 and…

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

Q: A woman wishes to save $20,000 for a down payment on a home. She can afford to set aside $1100 per…

A: The concept of the time value of money states that the same amount of money is worth more now than…

Q: Joel is considering putting a $2400 laptop purchase on his credit card, which has an interest rate…

A: When something is purchased on credit, the amount can either be paid as a lump sum or in…

Q: Arabella converted her loan to light payments which gives her an option to pay 12,000 every 2 years…

A: Present Value of annuity refers to the today's value of cash flows of a series of equal cash flows…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: For the calculation I have used the above given formula and got the monthly payment to be…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

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

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: It is now five years later, and Adrian has saved enough money for a 20 percent down payment on a…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Approximately how long will he take to pay off the loan under these​ conditions?

A: Information Provided: Time = 5 years Interest rate = 6.5% Present value = $62,000 Additional payment…

Q: Your brother has asked you for a loan and has promised to pay back $7,750 at the end of three years.…

A: Present value is the worth of amount in current time that is expected to be receive in some future…

Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…

A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…

Q: The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly…

A: Computation:

Q: Bozo decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: The periodic payment is the amount that will be paid every period until the loan amortized which…

Q: Ruth availed of a cash loan that gave her an option to pay P5,000 monthly for 1 year. The first…

A: Periodic Payment = P5,000 Time Period = 1 Year  Frequency = 12  Interest rate = 5% Compounded…

Q: Kristy Joe deposits $130 each month in an ordinary annuity to save for a new car. If the annuity…

A: The future value of the investment is computed to find total saving can be made for the new car.…

Q: Carl and Melissa have a monthly income of $6000. They want to buy a house for $200,000 and make a…

A: Carl and Melissa have a monthly income of $6000. The cost of the house is $200,000. Down payment of…

Q: what is the size of the payments

A: Compound interest is the amount of interest earned over the interest. Under this method the…

Q: Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making…

A: Mortgages is a loan contract used by persons to buy capital assets such as house on debt. Mortgages…

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Value of loan increase at mentioned rate for a loan duration. This FV can be computed by using…

Q: Hannah wants to have $1500 to help pay for a new deck in 13 years. If she wants to put her money…

A: Present Value = Future value / e^rt Where r = 8.50% t = 13 years

Q: Boris wants to save $27,000.00 for the down payment on a house. He already has $2,700.00, and he…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: İhsan wants to pay the 50,000 TL loan he received from the bank in annual installments of 2,500 TL…

A: The loan refers to the fund provided by the lender to the borrower at a certain interest rate for a…

Q: Mike wants to buy a scooter that costs 10000, but he cannot afford to buy it cash. He opts for the…

A: Mike's deposit is 13% on total price, So, Deposit = 0.13 * 10,000 = 1,300 Mike's deposit for the…

Q: Gary has decided to save RM150 a month for 4 years. How much will be the balance in the account if…

A: In compound interest money grow with time as there is interest on the interest.

Q: Julia has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is…

A: Number of years is the period taken for the repayment of loan taken. Loan amount $150,000 Monthly…

Q: Marie and Danny Would like to buy a house for $220,000. The down payment for the mortgage is 30% of…

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

Q: Hudson would like to purchase a new car for $12,000. How much will his monthly payments be if he…

A: Loan amount (PV) = $ 12000 Interest rate = 6.5% Monthly interest rate (r) = 6.5%/12 =…

Q: If you borrow $30,000 from your dad for college and you agree to pay him back at 14% interest per…

A: Given, Amount borrowed = $30,000 Interest rate = 14% Monthly installment = $750 Monthly interest =…

Q: Anna and Doug are in the market for a new house. The maximum payment they can afford is $700 per…

A: The loan amount will depend upon the periodic payment, interest rate and the duration of the loan

Q: Bill and Alice have decided to open a 30-year home mortgage loan with a rate of 3.80% monthly. If…

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