What are the actual total savings for a borrower if the note rate is 6.625%, 30 year, 2/1 buy-down, sales price of a $140,000 with $20,000 down payment? (use P&l only for calculations)

Q: Assuming you bought a 182-day Treasury Bill with a face value Ghc 20,000.00 and held it for 45days.…

A: Purchase price = Face value/(1+interest rate*days to maturity/360) Accrued interest = Purchase…

Q: Suppose you take out a loan for 160 days in the amount of $14,000 at 7% ordinary interest. After 40…

A: The interest amount is computed by multiplying the amount of the loan with the interest rate and the…

Q: Assume a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years. If…

A: Here selling price is 88,000 and down payment is 24,000 Hence loan amount = selling price - down…

Q: Universal Savings & Loan has $1,000 to lend. Risk-free loans will be paid back in full next year…

A: To find the profit of the risk-free loan, we will simply find the interest paid on the loan.…

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Annual percentage rate is the interest rate paid in a year on loan amount or on investment. It is…

Q: Prepare the following calculations. principle on a note is $ 4,000, interest rate is 5%, time is 2…

A: 1. Interest = Principle x Interest rate x Time in Years = $4000 x 5% x 2 = $400 2. Interest =…

Q: How much is the interest if you need to borrow 400,000 for one year with 475,000 line credit, where…

A: Interest = amount borrowed * rate of interest

Q: How much would you have to deposit at the end of the year in an account that pays an interest rate…

A: Information Provided: Term = 15 years Future value = $20,000 Interest rate = 7.6% compounded monthly

Q: How much the monthly payment on a $114,000 home be if you get 4.1% interest over a 15 year loan with…

A: Here, Loan Amount is $114,000 Interest Rate is 4.1% Time Period of Loan is 15 years Compounding…

Q: Discount loan. Up-Front Bank is now offering a two-year discount loan for 9.8%. Working backwards,…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…

A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…

Q: What is the total interest / dividend amount to be repaid at the end of 1 year for a loan of 200 000…

A: simple interest formula: interest = principal×rate×time

Q: A lender requires PMI that is 0.8% of the loan amount of $460,000. How much (in dollars) will this…

A: Given information: Loan amount is $460,000 PMI requires 0.8% of loan amount

Q: Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: for borrowing 15000 for 3 years and 3months, a lender charges a borrower 750, what is the simple…

A: A simple rate of interest is one of the simple methods of calculating the interest on borrowings.…

Q: A borrower gets a $75,000, 25 year, 13% loan with 4 points.  What is the true interest rate?

A: Given Information: Loan amount is $75,000 Number of years is 25 Interest rate is 13% 4 points on…

Q: A person is repaying a loan of $50000 at $200 per month. The interest rate is 3% per month. Form a…

A: PMT is the periodic payment made.

Q: Using the Simple Inteest equation, determine the lowest interest amount and the lowest monthly…

A: Offer A  Interest Rate = 7% Monthly Interest rate(rA) = 7%/12 =0.5833% Years  = 5 Terms(nA) = 5*12 =…

Q: In order to borrow $100,000 for a 5% loan on a discount loan basis with a 5% compensating balance;…

A: Whenever an individual is in need of extra funds to finance his or her purchase in case of less cash…

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Loan Amount  = $1,000 Monthly payment = $108 Time Period = 12 months

Q: How much profit or loss would you experience if you purchased a $1,255,640 face value bank bill with…

A: Profit:- Profit can be defined as the extra financial income that is gained after deducting all the…

Q: 5. If this loan had been made on a 10% add-on basis payable in 12 end-of-month installments, that…

A: The following calculations are done as per the information provided.

Q: If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months.…

A: Loan amount = P 12450 Par value = P 12840 Discount amount = Par value-Loan amount…

Q: What is the approximate annual cost of foregoing the cash discount if the credit term is 2/15, net…

A: The company pays the amount on the 50th day. Credit term = 2/15, net 45 days. This credit term…

Q: 1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present…

A: In this Question we are required to compute the Present Value of Cash flows received every quarter…

Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…

A: Given: Interest rate = 8.50% Amount borrowed = $42,000 Interest amount = $3,570 Net loan = $38,430

Q: What is the internal rate of return on a $3,000 loan to be repaid as $3,500 twoyears from now?

A: An internal rate of return is the metric used in financial analysis for estimating potential…

Q: You borrowed $700 at 5% compounded quarterly. Yourpayments are $150 at the end of each year. How…

A: We will adopt the following approach:It's a typical time value of money case, where we have to find…

Q: Company A expect to have $1000 in one year.  A bank is offering loans at 6% interest per year, how…

A: Given: Amount that is expected in one year (C) = $1000 Interest rate (r) = 6% =0.06 Number of years…

Q: How much is the interest if you need to borrow $400,000 for one year with $475,000 line credit,…

A: In practice, it's ideal to keep unused credit cards active so that they may benefit from a longer…

Q: Suppose you take out a $37,000 4-year balloon loan from a bank at an interest rate of 9.8%. What…

A: Balloon payment is future value of payment considering the interest rate and period.

Q: Someone is borrowing from a five-six ( Bumbay ) money lender. How much will   be charged if you want…

A: Interest is referred to as the monetary charge which is to be paid to the moneylender on the…

Q: A borrower can borrow $10 million for six years. Assume the current LIBOR rate is 7%. After some…

A: As the question is incomplete, based on options given calculating amount of interest paid under…

Q: If you borrow $20,000 at an interest rate of 8%, compounded annually with the following repayment…

A: In the given sum we are given loan amount and  interest rate. We must find the value of A which is…

Q: How would be the principal amount of loan if you need to borrow $300,000 for one year with a…

A:

Q: Develop the table below by comparing the monthly pay- ments for a $200,000 mortgage loan with an…

A: When time is 100 years N = 100*12, FV = 0, PV = 200,000, rate = 8%/12 use PMT function in Excel…

Q: You make an investment into a money market account at time T=0. In year T=5, the value of the money…

A: Given: Time period: 5 years Future value: $5000 Rate of interest: 5% compounded quarterly To…

Q: How much interest will be collected in advance from a loan of $ 25,000 for 2 ½ years if the discount…

A:

Q: To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9720. What annual…

A: future value = $10000 Mature time = 6 months or 6/12 Principal = $9720 interest amount = future…

Q: Assume a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years. If…

A: First, we will compute the monthly payment to pay off the loan. then we will compare the total…

Q: Suppose that you obtain a 100.000 TL loan from a bank. The maturity is 10 years and the annual…

A: P= 100,000 (Principal Amount) T= 10 years (Maturity Period) R= 10% (Annual interest rate)   S.I.…

Q: Everett's Electronics is receiving a senior bank loan with the following terms: $6MM principal, 5.6%…

A: The annual return-The annual return is the return on an investment generated over a year and…

Q: lender requires PMI that is 0.7% of the loan amount of $560,000. How much (in dollars) will this add…

A: PMI stands for Purchasing Manager’s Index. It is an indicator of activities of a business. It is…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.