You found your dream home! The down payment is $29,000. However, you still need 40% of the down payment plus required improvements will cost another 18% (First: what total % of the down payment do you need? _____). You borrow the money from your Savings & Loan, but you must pay it back within 10 years at an interest rate of 14%. Using this amount as your principal P, calculate the future value A using:2) Simple Interest

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A:

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Time value of money :— It means that value of money in present days has more as compared from same…

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Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Calculations of compound interest compounded on daily basis on borrowed amount is shown below:…

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Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

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Q: How much must you save each year

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

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Q: You can afford payments of $950 per month for the purchase of a house. a) What is the largest…

A: Given details, Monthly payments, C = $950Interest rate, r = 3.2% p.a.  or 0.267% per month (3.2%…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Computation:

Q: Suppose you want to buy a new house. You currently have $15 000 and you figure you need to have a…

A: Current amount (P) = $15000 House cost = $150000 Down payment and closing costs needed (F) = (10% +…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

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A: We'll compare the price per year with the present value of cash inflows in order to arrive at a…

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Q: You took out a loan 10 years ago that had the following terms. Amount $1,200,000, rate 5.5% and 30…

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Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Continuous interest is computed below:

Q: Today, your dream car costs $50,100. You feel that the price of the car will increase at an annual…

A: We need to find future value of the car if grown at 2.1%

Q: Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings…

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Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: The interest calculated on the initial or principal amount which includes all the accumulated…

Q: You are thinking of renovating a basement apartment beneath your house, which you currently rent out…

A: Incremental rent per month due to reinovation = C = $ 729 - $ 521 = $ 208Payment frequency =…

Q: You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need…

A: Present value is the current value of future cash flows at a given discount rate. It is given as: PV…

Q: Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making…

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A: Cash price is the present value of quarterly payment made at the of the quarter.

Q: A company wants to have $30,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Semi annual payment = $30,000 Period = 4 1/2 = 4.50 Years Semi annual period = 4.50*2 = 9 Interest…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

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Q: Your company needs $500,000 in two years' time for renovations and can earn 9% on investments. a)…

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Q: You bought an apartment. Its market value as of today is 150 000 zł. Each year you can get 15 000 zł…

A: Rate of return: It is the percentage of return generated from an investment.

Q: You estimate that by the time you retire in 35 years, you will have accumulated savings of $2…

A: This is typical problem of present value of growing ANNUITY.

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Q: uppose you have opened an MRI clinic and you are able to purchase a new MRI machine for $1 million.…

A: In this we need to calculate the present value factor and than calculate annual cost.

Q: You want to have $350,000 saved up by the time you retire in 30 years, How much would you need to…

A: Future Amount need to be saved = $350,000 Time period = 30 years Annual interest rate = 6.5%

Q: You want to buy a condo 5 years from now, and you plan to save $3,000 per year, beginning…

A: Given:

Q: 1. Determine how much you will have saved after 9 years. 2. Determine the amount saved if you were…

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Q: You can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The…

A:

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.