You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year mortgage loan to you for the remainder. Assume an annual interest rate of 5% and monthly payments. What is your monthly payment? Use the $ sign and round to the nearest dollar.

Q: You want to buy a house valued at $200,000.  AFter a down payment, you can finance the house with a…

A: The annual percentage rate is the rate earned on the investment or paid on loan over the period of…

Q: You want to buy a boat, and a local bank will lend you $25,000. The loan will be fully amortized…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…

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: You want to buy a $260,000 home. You plan to pay $26000 as a down payment, and take out a 30 year…

A: When a person does not have enough money to buy any assets, he would consider taking a loan. The…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

Q: You buy a house for $328,000, make a $33,000 down payment, and take out at 15-year mortgage at an…

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

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: Given Information in the Question:- Loan Amount is $20,000 Loan Period is 5 Years or 60 months…

Q: You plan to purchase a $390,000 house using either a 30-year mortgage obtained from your local…

A: The question is based on the concept of Financial Management.

Q: Suppose you borrow 11,000 for 5 years at 6% towards the purchase of a car. What would be the monthly…

A: The computation of monthly payments:Hence, the monthly payment is 212.66.

Q: You decide to buy a house costing $6,000,000.  You pay $1,000,000 down, and the remainder will be…

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

Q: You want to purchase a house valued at $200,000.  After a downpayment, you can finance the house…

A: Value of the house = $200,000 Number of years of mortgage = 20 Number of periods (n) = 20*12 = 240…

Q: We want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: Amount of loan=$40000Rate of interest=8%

Q: You have just purchased a new warehouse. To finance the purchase, you have arranged for a 30-year…

A: The calculation is:

Q: the amount of the down payment?

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

Q: You need a home loan of $95,000 after your down payment. How much will your monthly house payment be…

A: Loan amount (PV) = $95000 Interest rate = 6.25% Monthly interest rate (r) = 6.25%/12 =…

Q: there is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20…

A: Loan amount (PV) = $ 500,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240 Annual…

Q: You borrow $100,000 to buy a house; if the annual interest rate is 6% and the term of the loan is 20…

A:

Q: If you went to the bank for a 35 year, $180,000 mortgage at an interest rate of 7% compounding…

A: A borrower is required to pay the lender the interest and the original amount by paying regular…

Q: You are ready to buy a house. Total price is $160,105. For the remaining part, you plan to borrow…

A:

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: If your bank approves a $300,000 mortgage for your new home, at an annual percentage rate of 4.5%…

A: Loan amount = $ 300,000 Interest rate = 4.5% Monthly interest rate = 4.5%/12 = 0.375% Monthly…

Q: You buy a house and finance $250,000 at 4% per year. One loan is 30 years (360 monthly рayments) and…

A: Monthly payments is calculated by present value of annuity formula. r is annual percentage rate and…

Q: You borrow a 20 year mortgage loan to buy a house worth $150,000. The bank charges you 6% annual…

A: Here, Mortgage Loan is $150,000 Annual Interest Rate (r) is 6% Time Period (n) is 20 years…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Loan is one of the alternative of financing. An individual or organization who is taking the loan…

Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 30-year…

A: Annual Percentage Rate (APR) refers to the percentage rate which shows the interest rate…

Q: You want to borrow $94,000 from your local bank to buy a new sailboat. You can afford to make…

A: Loan is an agreement between lender and borrower where lender provide funds to borrower which repaid…

Q: You purchase a home for $400,000 and make a down payment of $125,000. The balance is borrowed and…

A: Using excel PMT function

Q: You want to buy a house. The loan amount will be $285,000.00. A bank is offering a 5% interest rate…

A: Monthly Payment: A borrower pays down portion of the remaining sum together with the interest on the…

Q: Suppose you purchase a car for a total price of $21,750, including taxes and license fee, and…

A: Part A and B:Calculation of Monthly Payment and Total Interest Paid:The monthly payment is $317.74…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…

Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: A loan is a method through which an individual can borrow money from a financial institution for…

Q: You want to buy a car, and a local bank will lend you$40,000. The loan will be fully amortized over…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $400,000. Your mortgage bank will lend…

A: Mortgage/ Borrowings Borrowings are the loan which is taken by the individual to meet its financial…

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

A: Answer:

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $400,000. Your mortgage bank will lend…

A:

Q: You borrow $280,000 to buy a house. The mortgage rate is 4.5% and the loan period is 25 years.…

A: The series of payments discussed here is a form of annuity wherein an equal amount is paid every…

Q: You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Cost of home = $168000 Down payment = 5% Loan period = 30 Years Interest rate = 6.95%

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: You need a home loan of $65,000 after your down payment. How much will your monthly house payment be…

A: FORMULA Monthly payment = LV/[1-(1+R)-N]/R Where LV - Loan amount i.e. $65000 R - Monthly interest…

Q: To purchase a new truck, you borrow $42,000. The bank offers an interest rate of 7.5% compounded…

A: Loan amount  $       42,000.00 Interest Rate 7.50% Time Period(Years) 5

Q: you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Given:

Q: You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will  loan you…

A: Time value of money is considered to determine the equated instalments that are due for each period.

Q: You are buying a house for $200,000.00 with a downpayment of $40,000.00. The loan will be paid back…

A: An amortization table is a table that helps to compute the periodic payment, interest paid,…

Q: Oppenheimer Bank is offering a 30-year mortgage with an EAR of 5 3/8%. If you plan to borrow…

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

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.