The balance on a mortgage was $42,600 and an interest rate of 4.25% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly payments were set at $1,412, how long would it take to pay off the mortgage?  Express the answer in years and months, rounded to the next payment period   (C). If the monthly payments were set at $1,412, calculate the size of the final payment.

Q: A mortgage of $550,000 is to be amortized by end-of-month payments over a 25- year period. The…

A: Total Mortgage = $550,000 Total duration = 25 year Interest rate = 8% compounded semiannually

Q: (a) Determine the number of rounded payments required to repay the mortgage. ​(b) Determine the size…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Determine the monthly amortization for a 30-year mortgage of P6,000,000 at a 5% interest rate,…

A: This question is an application of annuity. The monthly amortization is the equal monthly instalment…

Q: A 25- year, $340,000 mortgage at 1.60% compounded semi- annually was settled with quarterly payments…

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

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: A mortgage for a condominium had a principal balance of $47,400 that had to be amortized over the…

A: Given: Particulars Amount Mortgage $47,400 Years 6 Interest rate 3.42% Monthly payment…

Q: A 25-year, $305,000 mortgage at 2.30% compounded quarterly was settled with semi-annual payments.…

A: Installment amount is the amount of periodic payments a borrower pays to the lender in order to pay…

Q: A mortgage balance of $23,960 is to be repaid over a 7-year term by equal monthly payments of 6.8%…

A: Solution:- Given, A mortgage balance of $23,960  Repaid over a 7-year term equal monthly payments at…

Q: A mortgage for a condominium had a principal balance of $46,400 that had to be amortized over the…

A: Price of house   $                       46,400.00 Loan Amount  $                       46,400.00…

Q: alance on a mortgage was $48,200 and an interest rate of 4.50% compounded semi-annually was charged…

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

Q: The balance on a mortgage was $43,000 and an interest rate of 4.25% compounded semi-annually was…

A: Monthly Payment: The amount that is due each month in order to pay off the loan within the allotted…

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: A $350,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 20 year…

A: Price of house   $          3,50,000.00 Down Payment 20% Time Period 20 Interest Rate 3.50%

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…

Q: For a 30-year house mortgage of $275,000 at 5.7% interest, find the following. (Round your final…

A: The monthly payments have 2 components. One that settles the interest obligation and the other that…

Q: A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 8.6%…

A: An amortized loan is one that has planned, monthly payments that are applied to both the interest…

Q: Consider a $58,331, 30-year mortgage at interest rate 12% compounded monthly with a S600 monthly…

A: When a debt is repaid over a certain length of time, known as the amortization term, it is said to…

Q: The adjustable rate mortgage is for 15 years with monthly payments. Loan amount is $120,000. During…

A: Given: Loan amount = $120,000 Loan term = 15 Years First 8 years interest rate is 5% Last 7 years…

Q: a. What is the size of the quarterly payments? (Round to the nearest cent)   b. How much will the…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: A mortgage of ​$161000 is to be repaid by making payments of ​$1191 at the end of each month. if…

A: We need to use NPER formula in excel to calculate term of mortgage. The formula is…

Q: The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually.…

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

Q: A 25 year mortgage requires payments of $3443.75 at the end of each month. If interest 5.84%…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: A mortgage balance of $25,o00 is to be repaid over a 10-year term by equal monthly payments at 5.6%…

A: Here,

Q: A ​$96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1%…

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

Q: A $560,000 townhome in Richmond Hill was purchased with a down payment of 20% of the amount. A…

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

Q: Consider a home mortgage of ​$225,000 at a fixed APR of 3​% for 25 years.   a. Calculate the monthly…

A: In case of a home mortgage fixed monthly payments are made. The fixed monthly payment consists of…

Q: A $305,000 mortgage at 5.00% compounded semi-annually was settled with monthly payments of $2,300.…

A: Mortgage amount is $305,000 Interest rate is 5% compounded semi annually Monthly Payment is $2300…

Q: Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at…

A: Amortization Schedule is the schedule or table representing the loan repayment schedule. It includes…

Q: Consider a mortgage on a house valued at $480,000 with an interest rate of 6% compounded…

A: Mortgage loan: These loans are issued with the nominal rate that is compounded semi-annually,…

Q: Consider a home mortgage of ​$150 comma 000   at a fixed APR of 4.5 ​% for 20   years.   a.…

A: Using Excel PMT function

Q: Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 30 years. a. Calculate the monthly…

A: Principal amount (or present value, PV)=$125,000 APR=4.5% Time=30 years a. Monthly payments can be…

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5 3/4 %…

A: Mortgage amount (PV) = $ 46000 Interest rate = 5 3/4% = 5.75% Monthly interest rate (r) = 5.75%/12 =…

Q: A person borrowed a loan and pledged to repay it and its interest using the amortization method, out…

A: The present value of the annuity should be used here since the payment is made at regular intervals…

Q: a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly…

A: Information Provided: Loan amount = $40,100 Interest rate = 5.50% compounded semi-annually Years =…

Q: a. Calculate the size of the monthly payments. Round to the nearest cent b. Calculate the principal…

A: a) Calculate the amount of monthly payments as shown below: Resultant table Hence, the amount of…

Q: A $150,000 mortgage was amortized over 20 years by monthly repayments. The interest rate on the…

A:

Q: A mortgage for a condominium had a principal balance of $42,600 that had to be amortized over the…

A: Given:

Q: Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly…

A: Monthly Mortgage Payment The monthly mortgage payment is the repayment of a mortgage loan by paying…

Q: A 30-year mortgage for $175,000 is issued at a 6% nominal interest rate. (a) What is the monthly…

A: Mortgage is a long-term amortized loan which is discharged by making periodic payments, generally…

Q: A home mortgage extends for 20 years at 8 percent interest compounded monthly, the payments are also…

A: A home mortgage is an arrangement to pay back in an equal periodic instalment. The instalment amount…

Q: The Taylors agreed to monthly payments rounded up to the nearest $100 on a mortgage of $175000…

A: Here, Loan Amount is $175,000 Interest Rate (r) is 6.75% Compounding Period(m) is Semi Annual i.e 2…

Q: Suppose you take on a loan that is subject to an annual interest rate of 12%, with the interest rate…

A: present value=future value1+rate of interestfrequency of compoundingyear×frequency

Q: A $244,500 mortgage for 15 years for a new home is obtained at the rate of 8.9% compounded monthly.…

A: In the given question we require to calculate the : a) Monthly payment b) The interest in the first…

Q: A $44,000 mortgage taken out on June 1 is to be repaid by monthly payments rounded up to the nearest…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

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: rtgage for a condominium had a principal balance of $43,800 that had to be amortized over the…

A: The mortgage loans are paid equal amount fixed monthly payments and these payments carry the payment…

Q: what is the total amount of the loan?

A: The total amount of loan can be calculated using the present value formula. The present value of…

Q: You will be paying off a mortgage of $250,000 over the next 25 years. You have signed a loan…

A: A loan amortization table is a schedule of payments to pay back the loan in installments. It…

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.