You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big of a loan can you afford?  How much will you pay the loan company? How much of that money is interest?

Q: You can afford a $450 per month car payment. You've found a 3 year loan at 7% interest. How big of a…

A: Computation of the maximum loan borrower can afford is shown as follows: Hence, the maximum loan…

Q: You can afford a $1050 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: a.

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 $400 per month car payment. You've found a 3 year loan at 6% interest. How big of a…

A: present value of annuity is the value of recurring cashflow discounted to present date at specified…

Q: ou can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30…

A: When we make a mortgage payment we pay fixed monthly amounts as payments towards the mortgage.…

Q: You can afford to pay $750 per month for mortgage payments. How large a loan can you afford if the…

A: A mortgage is one kind of secured loan. When the borrower is unable to repay the principal or…

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: 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: How much money was your existing mortgage loan for? suppose that 10 years ago you bought a home for…

A: Given information: Mortgage bought for $150,000 Down payment is 10% Interest rate is 9% Number of…

Q: You can afford monthly payments of $700. If current mortgage rates are 2.24% for a 15-year fixed…

A: Given: Monthly payment = $700 Interest rate = 2.24% Years = 15 Down payment = 20%

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: You can afford a $350 per month car payment. You've found a 5 year loan at 2% interest. How big of a…

A: Loan amount is equal to present value of annuity of $350

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 of $100,000 with a fixed interest rate of 5 percent. You…

A: given, p = $100,000 r = 5% m = 12 n = 30

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: You have just applied for a 30-year $100,000 mortgage at a rate of 10%. What must the annual payment…

A: using excel Pmt function PMT(rate,nper,pv,fv) rate =10% nper =30 pv =-100000 fv =0 compute pmt

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: If you want to buy a car, and you can afford a monthly payment of $425, how large of a loan can you…

A: Using excel PV function to get the loan amount

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: You have just purchased a home and taken out a $500,000 mortgage. The mortgage has a 30-year term…

A: Calculation of Total Interest Paid and Total Principal Paid:The total interest paid is $29,832.97…

Q: You are purchasing a home and plan to take out a 25 year mortgage loan for $300,000. The interest…

A: The correct option is option “c”.

Q: You can afford a $300 per month car payment. You've found a 5 year loan at 7% interest. How big of a…

A: The question is based on the concept of repayment of loan at fixed interval and regular payment .the…

Q: maximum loan

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

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 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: 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: Suppose your gross monthly income is $5,600 and your current monthly payments are $525. If the bank…

A: Step 1: The calculation is:

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: Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 30-year loan with a…

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

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: 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: Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: you can afford 700 per month mortgage payment. youve found a 30 year loan at 5% interest. how big…

A: Given, Amount can afford = 700 per month Loan period = 30 years Interest rate = 5%

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

A: Given information:

Q: You get a student loan of $20,000 with an annual interest rate of 6% where you make a payment once a…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

Q: the price of a house is $400,000. Then, you make a down payment of $130,000 and take a 30-year…

A: Price = $ 400,000 Down payment = $ 130,000 Period = 30 Years Number of monthly payments = 30*12 =…

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: You get a $350,000 mortgage to buy a condo.  If rates are at 6% and you will take thirty year fixed…

A: GivenPrice of Condo "P" = $350,000 Rate per year = 6% Rate per month "r" = 6%/12 Number of years =…

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: 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…

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: “Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the…

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.