Suppose a bank offers you an 8% interest rate on a 30-year mortgage to be paid back with monthly payments. Suppose the most you can afford to pay in monthly payments is $1800. How much of a mortgage could you afford? Show your work.

Q: You buy a house; your mortgage is $200,000. The mortgage is payable monthly over a 30 year period.…

A: Given information: Mortgage amount is $200,000 Number of years is 30 Annual interest rate is 6%

Q: Suppose your gross monthly income is $5,500 and your current monthly payments are $575. If the bank…

A: Maximum monthly payment = (Gross monthly income *Allowable % for monthly payments)- Current monthly…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: PMT function gives the payment for the loan for the constant payment and the constant rate of…

Q: What size mortgage can you afford if you can make a monthly payment of $1,200 per month for 30…

A: Mortgage we can afford is present value of monthly payments

Q: You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 7% interest. a)…

A: Present value of annuity is value of future recurring cashflow discounted to current date at…

Q: Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and…

A: The current price of the house is computed by computing the present worth of the house. The formula…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 5.84% interest. Suppose…

A: 30 years 15 years Purchase of house 425000 425000 Downpayment(25%) 106250 106250 Amount…

Q: You can afford a $850 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How…

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

Q: Suppose you had to choose between a 9% 25-year mortgage or a 8.5% mortgage with 2 discount points.…

A: The discount points in mortgages are the points that can classify into borrower and lender points.…

Q: You can afford a $1150 per month mortgage payment. You've found a 30 year loan at 7% interest. a)…

A: Monthly mortgage payment that the investor can afford is $1,150 and the loan duration is 30 years.…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. b. How much…

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

Q: You can afford a $1450 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: Monthly payment (P) = $ 1450 Period = 20 Years Number of monthly payments (n) = 20*12 = 240 Interest…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. a. Find the…

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

Q: Suppose you have good credit and can get a 30 year mortgage for $100,000 at 5%.  What is your…

A: Amount of Mortgage (pv) = $100,000Time Period = 30 yearsNumber of Payments in a Period = 12Total…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: a) Hence, the size of loan is $166,791.61. b) Hence, the total money to be paid is $360000.

Q: You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 8% interest.a) How…

A: Part a-c:Calculation of Size of Loan, Total Money to be Paid and Total Interest:a) The size of loan…

Q: Suppose you pay back $465 on a $425 loan. You had the loan for 60 days. What was your simple annual…

A: A loan means the amount that is borrowed by the individual from the banks and other financial…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: given, pmt = $1400 m = 30 years  r = 8%  applying formula for pmt: pmt=loan amount…

Q: Suppose you take a 30-year fixed-rate mortgage loan for $600,000 with a mortgage rate of 6%.

A: in this we have to calculate annual payment and than find out how much is paid and how much is…

Q: If you went to the bank for a 25 year $120,000 mortgage at an interest rate of 6.5% corresponding…

A: A mortgage loan is a facility provided by a financial institution to the borrower to purchase a real…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay…

A: formula for Monthly payment: PMT = P×rm1-1+rm-m×n where, p = loan amount r = rate m = frequency of…

Q: maximum loan

A: Loan amount refers to the amounts which a person borrowed at any given time under the mortgage. It…

Q: You want to take out a mortgage on a house worth $50,000 and pay it back in 10 years. Since your…

A: Here, Mortgage Amount is $50,000 Simple Interest Rate is 2% per month Time Period of loan is 10…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.54% interest. Suppose…

A: a) Value of home = $475,000 Down payment = 30% = 30%*$475000 = $142500 Loan amount = $332,500 Number…

Q: You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big…

A: a) Following information are given in the question:

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose…

A: given, price = $525000 n = 30 years r = 4.64% m = 12 down payment =30%

Q: You can afford a $800 per month mortgage payment. You've found a 30 year loan at 8% interest a) How…

A: Monthly payment (P) = $ 800 Period = 30  Years Number of monthly payments (n) = 30*12 = 360 Annual…

Q: Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 30 year…

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

Q: You can afford a $900 per month mortgage payment. You found a 30-year loan at 7% interest. How big…

A: The present value of an annuity is the current worth of a cash flow series at a certain rate of…

Q: Please show working You get a 15 year, 3.5% fixed-rate mortgage with one point, borrowing $300,000.…

A: Assumption: since question doesn't specify the payment frequency, we will assume that the payments…

Q: Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: A bank offers a 30-year annuity with monthly payments of $100 (the first payment comes in 1 month…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: You have just made an offer on a new home and are seeking a mortgage. You need to borrow $600,000.…

A: Mortgage: It is termed as a loan used for purchasing properties, homes, and other real estate…

Q: What would your monthly payment be if you took out a 30 year mortgage on a $110,000 house, paying…

A: a) The loan amount on a house of $110,000 with a down-payment of $22000 (20% * $110000) would be…

Q: You can afford $1050 per month mortgage payment. You’ve found a 30 year loan at 6% interest. a) how…

A: Given information : Monthly payments = $1050 Time period = 30 years Interest rate = 6%

Q: How much is your monthly payment? use monthly compunding formula

A: Answer:

Q: You can afford a $1150 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: A loan is an amount of money or funds that are borrowed by a borrower. The loan represents the…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. If you pay  $975…

A: According to the question, we need to find the time period in which the loan will be paid off. It…

Q: ou have a 30-year mortgage loan for $250,000 with an interest rate of 6% which requires you to make…

A: This pertains to time value of money.  The concept of time value of money tells us that worth of…

Q: Suppose you take out a 30 year mortgage for $ 225000 at 6% interest. The monthly payments on this…

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

Q: Suppose a bank offers you an 8% interest rate on a 30-year mortgage to be paid back with monthly…

A: Period = 30 Years Monthly period (t) = 30*12 = 360 Interest rate = 8% Monthly interest rate (i) =…

Q: If you have a $125,000 mortgage with a $700.00 monthly payment, payable over 30 years, what interest…

A: Calculation of Interest Rate:The interest rate is 5.38%.Excel Spreadsheet:

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.34% interest. Suppose…

A: Monthly payment: Monthly payment $1,854.655875 Answer: $1,854.66

Q: You can afford a $1100 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: A. GIVEN, MONTHLY PAYMENT (A) = $1100 TERM OF LOAN (n) = 30 YEARS INTEREST (R)=8% FREQUENCY OF…

Q: Suppose that you get a 15-year mortgage for $100,000 at 6.75%. What is your monthly payment? (Fill…

A: Given: Years = 15 Loan amount = $100,000 Interest rate = 6.75%