b) You have decided to buy an apartment costing $140,000. At preseñt you have $10,000 to be paid as down payment and your bank CAB agrees to provide you with the remaining amount of money. The interest rate is 12% to be repaid in 5 years period. Find the annual payment to be amortized and also prepare a schedule of amortization.
Q: You agree to purchase a home for $240,000 and decide to make a 20% down payment on the home. You…
A: formula for monthly payment: pmt = principal×rm1-1+rm-m×n where, r = rate of interest n = term of…
Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…
A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…
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 have decided to buy a 3,250 square-feet house in Denton, close to a good public school. The…
A: Monthly payments for loan amount is calculated in excel formula =PMT. Monthly payment for 3rd year…
Q: Mr Jeffrey wants to renovate his house. He takes a personal loan of RM 45000 from a bank with an…
A: We will first calculate the monthly payment by applying the required formula and thereafter we will…
Q: Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year fully amortizing…
A: Here, To Find: Annualized IRR =?
Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…
A: Monthly mortgage payments or EMI simply means the monthly loan payments made for the loan. A monthly…
Q: An engineer purchases a house using only a loan borrowed from a local bank. The loan is offered at…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: An individual wishes to purchase a house that is selling for $200,000. The person has $50,000 they…
A: Mortgage loan have some down payment and remaining are to be paid monthly over the long period of…
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: After you purchase the house, you decide to do some remodeling in the kitchen. You ask your parents…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: When you purchase your car, you take out a five-year annual-payment loan with an interest rate of…
A: Here we will first have to determine the amount of loan taken. We are provided with annual payments,…
Q: Suppose an engineer purchases a home and secures a loan of ₱2.5M from a commercial bank for 20 years…
A: Introduction Loan may be defined as that type of debt which is incurred by an individual or a…
Q: Find the monthly amortization of the loan.
A: Monthly Amortization: It refers to the monthly payments made to the lender by the borrower for…
Q: A buyer is considering purchasing a 10-acre parcel in Peoria, Arizona for economic development. The…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Your friend has offered to lend you some money. You decide to borrow $1,800 and agree to pay back…
A: The borrowing options can be compared by making a comparison between deferred repayment amount…
Q: (a) Calculate the amount of the annual payment? (b) Create and complete the amortization
A: An annuity is the payment of an amount over a period of time at a fixed interval of time.
Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…
A: Negative amortization is where the principal to be paid increases due to non payment of interest due…
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 agree to purchase a home for $150,000 and decide to make a 20% down payment on the home. You…
A: Please see the next step for the solution
Q: The Sandersons are planning to refinance their home. The outstanding principal on their original…
A: First, we need to find the current instalment which is given by Loan amount = PV of all instalments…
Q: You have just completed your bachelor’s degree in business and applied for a job with a local bank.…
A: Hi, since you have posted multiple questions, I will answer only the first one as per our…
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: Suppose that you earned a bachelor's degree and now you're teaching high school. The school district…
A: a) The formula to calculate accumulated value of an annuity is given below: Here, i is interest…
Q: Ruth availed of a cash loan that gave her an option to pay P5,000 monthly for 1 year. The first…
A: Periodic Payment = P5,000 Time Period = 1 Year Frequency = 12 Interest rate = 5% Compounded…
Q: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…
A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…
Q: A couple completely owns one home but is purchasing a second home for $120,000. They will put down…
A: Since more than one question are posted at a time the answer for first question is only provided as…
Q: To buy an $180,000 condominium, you put down $30,000 and take out a mortgage for $150,000 at an APR…
A: The calculation is:
Q: A real estate investor feels that the cash flow from a property will enable her to pay a lender…
A: This is the problem of the time value of money wherein the interest rate is mentioned and gets…
Q: 4. Suppose Dr.Campbell has a home purchase of $145,000 at the APR of 6% for 30 years, and he have…
A: Loan refinancing is the process of paying off the outstanding balance of current loan by taking a…
Q: Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you…
A: We use PMT function to calculate annual payments
Q: A real estate development company is planning to build five homes, each costing $195,000, in 2…
A: We need to determine the cost of 5 homes then use the periodic interest rate, number of periods to…
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: Assume that you will have a 10-year, $20,000 loan to repay when you graduate from college next…
A: Note: As per the Policy, We’ll answer the first question since the exact one wasn’t specified.…
Q: An individual wishes to purchase a house that is selling for $200,000. The person has $50,000 they…
A: Value of house = $200000 Down payment = $50000 Term for amortization "n" = 10 years or 10*12 = 120…
Q: a.) Find Jin’s monthly payment. b.) If after 10 years, he decided to pay off the loan, calculate…
A: a.) PMT = P x r / [1 – {1 / (1 + r)^n}] Here, PMT = Periodic Payment P = Present Value or Amount…
Q: if your bank approves a $300,000 mortagage for your new home, at an annual percentage rate of 4.5 %…
A: Loan amount = $ 300,000 APR = 4.5% Monthly interest rate = 4.5%/12 = 0.375% Monthly payment = $ 1800
Q: Assume you purchased a house on January 1, 2020 for $200,000. You had made a down payment of 20% on…
A: Calculating your monthly payments will allow you to determine if you can afford to finance an item…
Q: A real estate development company is planning to build five homes, each costing $155,000, in 2…
A: N = Time Period = 5 semi annual periods Future Value Required = Cost of each home * Number of homes…
Q: •Assume that you have saved money for a down payment on your dream house, but you still need to…
A: a) Given that: Loan Amount=Php500000= PV of annuity Year of mortgage=5 Year= 60 months Annual Rate…
Q: Suppose you are considering a $700,000, 25-year, fully-amortizing loan with 7% annual interest rate.…
A: Mortgage/ Borrowings: Borrowings are the loans taken from banks or non-banking financial…
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 were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…
A: Interest rate charged is calculated by RATE function in excel. Commission from car dealer is paid on…
Q: A family currently live in an apartment whose monthly rent is $950. They are thinking of buying a…
A: Opportunity cost is the loss from choosing one activity over the other. Opportunity cost is the…
Q: Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year partially…
A: Building Cost $ 10,00,000.00 LTV 100% Interest Rate 7% Time Period 30 Balloon Payment…
Step by step
Solved in 2 steps with 2 images
- You plan to purchase a $240,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b Construct the amortization schedule for the first six payments.if your bank approves a $300,000 mortagage for your new home, at an annual percentage rate of 4.5 % and with a monthly payment of $1800 What will be the remaining mortgage amount after you make 4 monthly paymentsFind the monthly house payment necessary to amortize the following loan. 9) In order to purchase a home, a family borrows $121,000 at 3.0% for 30 yr. What is their monthly payment? Round the answer to the nearest cent.
- You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 25th payment. (pls show solution)Suppose that you have good credit and can get a 30-year mortage for $100,000 at 5%. What is your monthly payment. After computing the monthly payment, create an amortization schedule for the first three payments of the problem.You are planning on buying a new house and want to make sure you can afford the monthly payments. The house you picked will necessitate you borrow $300,000. You think you can get the following. mortgage terms: borrow $300,000 at a fixed quoted (nominal) annual rate of 3.775%; to be paid off in equal monthly payments over 15 years.Compute the required monthly payment, and prepare an amortization table, showing for each month the beginning balance, payment, payment applied to interest, payment applied to principal, and ending. balance. (Assume monthly compounding) (solution needs to be in excel)
- We suggest the use of a spreadsheet to create the amortization tables. You take out a 30-year mortgage for $80,000 at 9.25%, to be paid off monthly. Construct an amortization table showing how much you will pay in interest each year for the first 15 years and how much goes toward paying off the principal. If you sell your house after 15 years, how much will you still owe on the mortgage according to the amortization table? HINT [See Example 8.] (Round your answer to the nearest cent.) $You would like to buy a new car and will need to borrow $25,000 to do so. Your loan will be repaid monthly over 6 years at a 5% annual interest rate. Calculate your monthly payment. N (period of time) I (Interest) PV (Present Value) FV (Future Value) PMT (Annuity) Prepare the loan amortization schedule. Period Monthly Payment Interest Expense Principal Payment Principal BalanceYou agree to purchase a home for $150,000 and decide to make a 20% down payment on the home. You finance the rest of the home payment with a 15 year fixed rate mortgage with an annual interest rate of 4.00%. Assuming that you make regular monthly payments, determine your regular monthly payment amount. Provide just a numerical answer rounded to the nearest cent.
- A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make annual fixed deposits to achieve your goal. If the interest rate is 2.5%, how much should be deposited each time? Hint use the Financial Function “PMT” to solve for the payment, and PV will be zero. You owe $25,000 to your parents. You promise to make 10 annual payments of $3,000 to settle your debt. What interest rate are your parents charging (estimated up to 2 decimal places), if you make the 10 annual payments beginning one year from now? Hint use the Financial Function “RATE”. Note if you need help use the “Help on this function” feature. This help will include an example for you to follow. You are offered an investment that will pay $14,000 per year for 17 years, beginning one year from now. If you feel that the appropriate discount rate is 3.4%, what is the investment worth to you today? Your grandparents offered you some money via the following options. Assuming an annual interest…Please answer the following problem with full working: You wish to purchase a home for $500,000. You will make payments of $30,000 at the end of every year for 30 years. The current rate of interest is 6.5% convertibly quarterly. Find the down payment that will be necessary.
