You want to buy a new house with your new salary. The cost of your dream home is $230,000. Luckily you have saved up a down payment of $14,000 and can get a loan for the rest at an interest rate of 6.80% compounded monthly. The loan is for 15 years plus a one point origination fee and $3,000 in closing costs.
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- You can afford payments of $950 per month for the purchase of a house. a) What is the largest amount you can finance for this house at 3.2% APR for 30 years? (Round to the nearest dollar.) b) How much total will you be paying the loan company at the end of 30 years for this house if you are paying $950 per month for 30 years? c) Now you are curious what the payments would be if you financed the amount found in part a) at 3.2% APR for 20 years instead of 30 years. How much would your monthly payments be if you financed the amount you found in part a) for 20 years at 3.2% APR? (Round to the nearest dollar.) d) Using the payments you found from part c), how much total will you pay the loan company at the end of 20 years?there is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20 years at a 2% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel.You have decided to buy a car that costs $25,800. Since you do not have a big down payment, the lender offers you a loan with an APR of 6.01 percent compounded monthly for 6 years with the first monthly payment due today. What is the amount of your loan payment?
- You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded monthly. The bank is charging 2 points to originate the new loan. How many months do you need to stay in the house after the refinance to make the refinance a benefit (Round to next month)?You are planning to build a vacation home. Your rich uncle offers you a $35,000 loan at 10.5% interest if you make $325 per month payments at the end of each month, how many payments will be required to pay off the loan, and how many years will this take? show relevant calculationthere is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20 years at a 2% interest rate. What would the monthly principle and interest payment be for the acquird loan?
- After making payments of $901.10 for 8 years on your 30 year loan at 8.3%, you decide to sell your home. What is the loan payoff?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.You want to buy a motorcycle from JD. The cost is $20,000,$2,000 down and the rest in three equal annual payment beginning one year from today. Interest is included in the payments at 10% . How much are the payments? Amortize the loan.
- You buy a new truck for your trailer that costs $55,000. What are your monthly payments for a 5 year loan assuming an annual interest rate of 4.75%? Your down payment was $10,000. Make sure your answer is shown to the nearest whole cent.You are thinking about buying a rental property. Because of the difficulty getting a loan, you are going to pay $350,000 in cash for the house today. You think you can rent out the property for the next 10 years, receiving $1,400 in cash each month after your expenses and taxes. At the end of ten years, you believe you will be able to sell the property for $425,000. If your discount rate is 7.2% annually with monthly compounding, what is the NPV of the rental property? (Assume first payment is 1 month from today)You want to save the down payment required to purchase a vacation home at the end of four years. If the required down payment is $75,000 and you can earn 6% a year on your savings account, how much do you need to set aside at the end of each year for the next four years?
