You plan to purchase a house for $400,000 and you will make a 20% down payment. You are evaluating two mortgages a 30 year fixed mortgage at 3.34%, and a 15 year fixed mortgage at 2.45%. Your goal is to have monthly payment that fits within the budget. a- which mortgage will give you the lowest monthly payment? What will that payment be? How much less will this be than the other monthly mortgage payment?   Assuming you take the full term of the mortgage, which mortgage will result in you paying the most interest? What will that interest be?

Q: 0 year vs 20 year mortgage How much money you save altogether by taking out 20 year mortgage rather…

A: Option -I   Purchase Price of House  $       1,90,000 Down Payment @10%  $          19,000…

Q: You are considering the purchase of a condominium to use as a rental property. You estimate that you…

A: Monthly rent = $1300 Monthly costs = $300 r = 6% per annum = 0.5% per month n = 25 years = 300…

Q: You've just bought a new​ flat-screen TV for ​$2,800 and the store you bought it from offers to let…

A: Price of TV (PV) = $ 2,800 Annual interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25%…

Q: You plan to purchase a house for $ 400,000 and you will make a 20% down payment. You are evaluating…

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

Q: You are planning to purchase a house that will require a mortgage of $300,000. You find 2 mortgage…

A: In order to calculate the monthly payment for both the type of mortgage PMT Excel function is used…

Q: You have an outstanding student loan with required payments of $600 per month for the next four…

A: Present value of annuity is the current value of the future payments that are calculated using the…

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

A: Cost of house is $150,000 Interest rate is 7.5% Current amount we have is $15000 Down payment 10%…

Q: You want to buy a new sports coupe for $74400 and the finance office at the dealership has quoted…

A: given, p=$74400 r=6.8% m=12 n=4 years (4812)

Q: Janine wants to but a lot which cost 1 million pesos. She plans to give a down payment of 20% of the…

A: Cost = 1,000,000 Down Payment = 20% Monthly interest rate = 2% Time period = 10 years

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: Future Value|(FV) is worth of current payment at future date. It is computed by compounding that…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount =26100 Financial charges =9360 Monthly payment =985 Total =36 months  Monthly financial…

Q: You are buying a house and have saved a down payment of $15,000. You can afford a monthly payment of…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: I need a process .i have underlined the answer  You want to buy a house that costs $245,000. You…

A: Given information in the question Cost of house = $245,000 Down payment = $24,500 (10% of $245,000)…

Q: Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller…

A: If it had been normal payments we would have used the simple formula. However, since there is a…

Q: Suppose you are considering taking consumer loan from bank for one year. Usually, for short-term…

A: When loan is taken from the bank, interest is charged on it. Interest can be charged by bank…

Q: You look at your budget and decide that you can afford $290 per month for a car. What is the maximum…

A: Annuity payment (P) = $290 Monthly interest rate ( r ) = 0.25% (3%/12) Number of Periods (n) = 60…

Q: You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford to make…

A: Given information: Present value is $73,000 Monthly payment of $1,450 Number of periods is 60

Q: The monthly rent for the first house is $1, 190, and the Bainters can expect it to increase 1.7%…

A:

Q: vould like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the…

A: Balloon payment is one time payment made at the end of period to pay the remaining amount of the…

Q: Suppose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 years…

A: Original loan = $125,000 APR = 6% New loan APR = 5.2%

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: You want to buy a house that costs $60,000. You took a $60,000 mortgage loan at an annual rate of…

A: Note: As per our guidelines, we can only answer one question at once. Since, you haven't…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: The question is based on the concept of calculating the future value of a periodic deposit with a…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted…

A: APR refers to annual percentage rate. An APR is the annual rate that is charged for borrowing or can…

Q: You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing…

A: Excel formula.

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

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 look at your budget and decide that you can afford $280 per month for a car. What is the maximum…

A: Maximum loan amount is calculated by present value of maximum monthly payments that the individual…

Q: Suppose you have budgeted $ 950 a month towards a mortgage. If you are offered a 30 year mortgage at…

A: Present value of annuity formula is applicable to find the mortgage loan amount for given mortgage…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: Here the given rate is APR and as it is compounded monthly we need to find the EAR. EAR =…

Q: You decide to buy a car for $16,000.00 and decide to make payments of $700 each month. If the loan…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: The calculation of the future value of the annuity with a 15% annual growth rate is as follows:

Q: You plan to purchase a house for $ 400,000 and you will make a 20% down payment. You are evaluating…

A: Price of house $400,000 Down payment [$400,000*20%] $80,000 Loan amount or PV of loan $320,000…

Q: You want to buy a new sports coupe for $74,700 , and the finance office at the dealership has quoted…

A: The monthly payments is calculated by using fallowing formula       Present value P = Present value…

Q: You want to borrow$60000from your local bank to buy a sailboat. You can afford to make monthly…

A: For determining the APR, the monthly rate will be computed using RATE function available in…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: Future value is the value of present cashflow at future date compounded at the specified rate.…

Q: What are the monthly payments on the original loans ?(Round nearest to cent)

A: Given values, Mortgage = $2,50,000 for 50 year ---->Monthly Payment  No. of payments = 50*12 =…

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 have an outstanding student loan with required payments of $500 per month for the next four…

A: Interest is measured as the percent of the amount of a loan/deposit, charged annually to the…

Q: Suppose you have budgeted $ 950 a month towards a mortgage. If you are offered a 15-year mortgage at…

A: A= $950 m=12 n=15 year r=6.25%

Q: You are planning to purchase a house that will require a mortgage of $300,000. You find 2 mortgage…

A: The mortgage payments would differ on the basis of the time period because the more the time period,…

Q: McBertys have $20,000 in savings to use as a down payment on a new home. They also have determined…

A: Given,  Down payment is $20,000 Payment is $1500 to $1800 Rate is 11% Term of loan is 30 years

Q: You are in the process of getting a new car but are not sure if you should buy or lease. The total…

A: A lease refers to a contract where one party gives another party the right to use property or…

Q: When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is…

A:

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.