If you need to take out a  $70,000  student loan  2  years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with  6.9%  interest for  10  years, a federal unsubsidized loan with  5.9%  interest for  10  years, or a private loan with  7.0%  interest and a term of  16  years? How much would you save over the other options? All payments are deferred for  6  months after graduation and the interest is capitalized. Part: 0 / 5 0 of 5 Parts Complete   Part 1 of 5       (a) Find the total cost of the subsidized loan. The total cost of the subsidized loan is  $ . Round your answer to two decimal places, if necessary.       (b) Find the total cost of the unsidized loan. (c) find the total cost of the private loan. (d) Which loan ha the overall lowest loan,and how much would you save over the other options?

Q: You plan to purchase a house for $ 400,000 and you will make a 20% down payment. You are evaluating…

A: The mortgage is taken to purchase or maintain real estate. The borrower pays the lender regular…

Q: An individual wishes to borrow $10,000 for a year and is offered the following alternatives: a. A 10…

A: Calculating the effective interest rate on borrowing option 10% loan discounted in advances. We…

Q: You plan to send your first born child to College for a 4-year degree with 4 annual payments.  Your…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You are deciding to buy a car to commute to work given the comparatively low interest of 6% per…

A: A loan is a debt arrangement that provides financial assistance to a person to full fill a specific…

Q: If you need to take out a $50,000 student loan 2 years before graduating, which loan option will…

A: The total cost of the subsidised loan would be the total interest paid on the loan. One way would be…

Q: Problem        “Suppose that your parents are willing to lend you $20,000 for part of the cost of…

A: To calculate rate on saving that would accumulate $ 20,000 in 60 months, if interest is compounded…

Q: Stafford loans are the most popular formof student loan in the United States. The current interest…

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

Q: u need to take out a $50,000 student loan 2 years before graduating, which loan option will result…

A: The total cost of the subsidised loan would be the interest expense. So one way to find the interest…

Q: You have $500,000 to donate to your college. The college's discount rate is 7%. You donate the money…

A: PV= $500,000 Discount rate= 7% Time period= 10 years Future value (FV)=?

Q: If you need to take out a  $50,000  student loan  2  years before graduating, which loan option…

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

Q: You have decided to buy a 3,250 square-feet house in Denton, close to a good public school.  The…

A: Given, Area of house = 3250 square feet Average price per square feet = $190 Bank finance = 80%…

Q: If you need to fake out a $10,000 student loan 2 years before graduating, which loan option will…

A: Given: Particulars Subsidized loan Unsubsidized loan Private loan Loan               10,000…

Q: You are buying a home that cost $110,000 and are putting 20% down to avoid PMI. What would their…

A: Cost of house is $110,000 , down payment is 20% of cost = $22000. Therefore, loan amount is $88,000.…

Q: You have the alternative of paying for university fees today for a payment of $16,000 or, you can…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford to make…

A: Given information: Present value is $73,000 Monthly payment of $1,450 Number of periods is 60

Q: After graduating from UCF, you plan to purchase a small condominium for $100,00o. You will be…

A: Purchase Price = 100,000 Down Payment = 10%× Purchase Price = 10%×100,000 = 10,000 Loan Amount =…

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: Introduction The present value of the annuity is the current value of the future payments that are…

Q: vould like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the…

A: Balloon payment is one time payment made at the end of period to pay the remaining amount of the…

Q: Suppose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 years…

A: Original loan = $125,000 APR = 6% New loan APR = 5.2%

Q: You want to borrow $75,000 from your local bank to buy a new sailboat. You can afford to make…

A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…

Q: The final option is for Tully to complete a doctorate degree in economics after finishing his…

A: The rate at which cash flows are discounted is known as the discount rate. It can be the internal…

Q: se price of the house, and you are looking at a 20 year loan at 6.12% interest compounded monthly.…

A: Maximum price = Down payment amount + Present value of mortgage payment

Q: Dan is considering borrowing $500,000 to purchase a new condo. Based on that information, answer the…

A: In order to manage the finance effectively, the business entity raises the funds from external…

Q: A student needs to borrow $7,000 to pay for college. She can get a loan at an APR of 10% to paid off…

A: We need to calculate total payment by using the loan amortization formula. Fist we need to calculate…

Q: You have $400,000 to donate to your college. The college's discount rate is 6%. You donate the money…

A: The future value of any cash flow is the compounded value of all the current time zero’s deposit and…

Q: You plan to purchase a house for $400,000 and you will make a 20% down payment. You are evaluating…

A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…

Q: If you need to take out a  $70,000  student loan  2  years before graduating, which loan option…

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

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: Here, Lottery Amount is $10,000

Q: If you need to take out a  $20,000  student loan  2  years before graduating, which loan option…

A: Loan amount = $20,000 Student Loan  for 2 Years Deferred period = 6 Months Subsidized loan (No…

Q: Suppose you have a student loan of ​$50,000 with an APR of 12​% for 40 years.   Complete parts​ (a)…

A: Student Loan Amount (P) = $50,000 APR (r)= 12%  or 0.12 n = 12 because payment is monthly  Time ( t)…

Q: If you need to take out a S50,000 student loan 2 years before graduating, which loan option will…

A: Here, Amount of Loan is $50,000 The loan has been taken before 2 years from graduation and has…

Q: You have a loan outstanding. It requires making 8 annual payments at the end of the next 8 years of…

A: Present value is defined as the sum of the funds, which are used to get invested for achieving the…

Q: Dan is considering borrowing $375,000 to purchase a new condo. Based on that information, answer the…

A: Amortization of loan- is a process to reduce the loan amount by regular payment of principal and…

Q: To help pay for college, you have just taken out a$1,000 government loan that makes you pay $126per…

A: Repayment of loan is made at fixed instalment of same amount which includes interest and part of…

Q: ou plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $1,500. If…

A: Using excel PV function

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Question is based on the concept of Mortgages

Q: To pay for university, you have just taken out a $1000 government loan that makes you pay $126 per…

A: Loan is the value which is borrowed from the other sources like banks and repaid it later with an…

Q: Please provide solutions to the following problems: You receive a cash bonus, but your employer…

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

Q: How much downpayment should you put at the time of purchase? how would i calculate this in excel?

A: Downpayment: It refers to the amount of money paid by the buyer in the early phase of purchasing…

Q: What are the monthly payments on the original loans ?(Round nearest to cent)

A: Given values, Mortgage = $2,50,000 for 50 year ---->Monthly Payment  No. of payments = 50*12 =…

Q: Suppose that you need $30,000 for your last year of college. You could go to a private lending…

A: Savings Account is type of deposit facility that is offered by commercial banks to their customers,…

Q: To pay for university, you have just taken out a $1000 government loan that makes you pay $126 per…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…

Q: You are in the process of getting a new car but are not sure if you should buy or lease. The total…

A: A lease refers to a contract where one party gives another party the right to use property or…

Q: If you need to take out a  $50,000  student loan  2  years before graduating, which loan option…

A: Hi, as per authoring guidelines, we will answer the first three, please repost unanswered parts…

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.