This is Ben's budget. Use his budget to determine the answer to the following question:Scenario: Suppose Ben wants to buy a house for $251,599.For a 30-year mortgage, Ben gets a 5% interest rate. Calculate his monthly payments for this 30-year mortgage, after 20% down payment.Monthly IncomeMonthly ExpensesITEMV AMOUNTITEMColumn1VAMOUNTIncome Source 1$2,000.00Rent$800.00Cell phone$100.00Groceries$200.00Car payment$273.00Auto expenses$120.00Student loans$250.00Credit cards$100.00Auto Insurance$78.00Personal care$50.00Entertainment$100.00Miscellaneous$50.00

Loan repayment system in entirely based on time value concept, where loan amount is given by L =…

Answered: This is Ben's budget. Use his budget to…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A couple purchasing a home budget $1400 per month for their loan payment. If they have $25,000 available for a down payment and are considering a 25 year loan, how much can they spent on the home at the following rate 7.1% compounded monthly? ______
Suppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.
This is Ben’s budget. Use his budget to determine the answer to the following questions: 1. Scenario: Suppose Ben wants to buy a house for $251,599. Calculate his 20% down payment for this home. 2. Scenario: Suppose Ben wants to buy a house for $251,599. For a 15-year mortgage, Ben gets a 4% interest rate. Calculate his monthly payments for this 15-year mortgage. 3. Scenario: Suppose Ben wants to buy a house for $251,599. For a 30-year mortgage, Ben gets a 5% interest rate. Calculate his monthly payments for this 30-year mortgage
This is Ben’s budget. Use his budget to determine the answer to the following question: Scenario: Suppose Ben wants to buy a house for $251,599. For a 15-year mortgage, Ben gets a 4% interest rate. Calculate his monthly payments for this 15-year mortgage, after the 20% down payment.
Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $989 per month, and the total finance charge is $9,504. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $). (Round your answer to the nearest cent.) Need Help? Read It Watch It Master It
MY NOTES ASK YOUR TEACHER Teal and Associates needs to borrow $65,000. The best loan they can find is one at 11% that must be repaid in monthly installments over the next years. How much are the monthly payments? (a) State the type. O future value O ordinary annuity O amortization O sinking fund O present value (b) Answer the question. (Round your answer to the nearest cent.) 2$ Need Heln? Read It
A couple purchasing a home budget $1,800 per month for their loan payment. If they have $25,000 available for a down payment and are considering a 25-year loan, how much can they spend on the home at each of the following rates? (Round your answers to the nearest cent.) 1) 6.3% compounded monthly 2) 7.2% compounded monthly
You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal end-of-month payments then what will be your approximate monthly installment? Group of answer choices $160.31 $154.31 $171.45 $170.43
You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal monthly payments beginning today then what will be your approximate monthly installment? Group of answer choices $170.43 $154.31 $160.31 $171.45
Suppose you have graduated from college and want to purchase a house. Your take-home pay is $4560 per month and you wish to stay within the recommended guidelines for mortgage amounts by only spending 14 of your take-home pay on a house payment. You have $18,500 saved for a down payment. With your good credit and the down payment you can get an APR from your bank of 4.35%, compounded monthly.a. What is the total cost of a house you could afford with a 15-year mortgage?b. What is the most that you could afford with a traditional 30-year mortgage instead of a 15-year?
Suppose that you decide to borrow $13,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% P. Use PMT = to complete parts (a) through (c) below. - nt 1- a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) MacBook Air
A homeowner planning a kitchen remodeling can afford a $300 monthly payment. How much can the homeowner borrow for 2 years at 9%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.)$ _____

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