A couple buys a $180000 home, making a down payment of 20%. The couple finances the purchase with a 15 year mortgage at an annual rate of 3.8%. Find the monthly payment.    If the couple decides to increase the monthly payment to $1100, find the number of payments.

Q: Charisma is able to pay $1250 a month for a 25-year mortgage with end of month payments. Because of…

A: It is a case of loan amortization where the monthly payment is given with a 20% down payment done…

Q: A couple has decided to purchase a $90000 house using a down payment of $18000. They can amortize…

A: Amortization is a strategy used in accounting to reduce the book value of a loan or intangible asset…

Q: Jeronica and Sandy have decided to purchase a cooperative apartment together. They have received a…

A: Given: Monthly payment = $592.40 Years = 30 Interest rate = 16.2% Loan amount = $42,500

Q: A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year…

A: Time value concept Money that is received today is of more worth as compared to the money received…

Q: Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of…

A: Here, To Find: Maximum monthly mortgage payment =?

Q: Ben and Carla Manchester plan to buy a condominium. They will obtain a $166,000, 30- year mortgage…

A: The total monthly housing payment will be the addition of the EMI payment, monthly property taxes,…

Q: Shaun and Kelsey decide they will buy a three-bedroom condo, with a $1,150,000 mortgage from Royal…

A: Shaun and Kelsey decided to mortgage = $1150000 from Royal trust Amortization = 25 years The…

Q: What will the remaining balance on their mortgage be after 5 years?

A: Mortgage: It is referred to as credit or loan used by the borrower to buy a house, land, or other…

Q: Brad and Sam take a 30-year mortgage for a house that costs $126,601. Assume the following:   The…

A: PITI stands for principal, interest, tax and insurance - PITI is the sum component of all four…

Q: Rachel and Alexander Harrison need to calculate the amount they can afford to spend on their first…

A: Affordability ratio refers to the monthly expense that a person can afford out of his income.Monthly…

Q: Tina decided to buy her first home. She found a house for $153,650. She will need to finance…

A: Time value tells that money received today is of more value than that of receiving the exact value…

Q: Sara purchased a three-bedroom, two-storey house for $209 000 with a 10% down payment. The mortgage…

A: The down payment refers to the money paid by the customer in the early stage of purchasing the…

Q: Ben and Carla Covington plan to buy a condominium. They will obtain a $220,000, 30-year mortgage at…

A: The mortgage refers to the loan that is backed by the property as collateral on which the mortgage…

Q: Julie and Rex Parker plan to buy a $310,000 home, paying 20% downpayment and financing the balance…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Maria purchases a new big screen television for $850 on her VISA card that carries a favorable…

A: Formulas:

Q: Helen plans to purchase a $394,000 house using a 15-year mortgage obtained from her local credit…

A:

Q: Susanna wants to purchase a house costing $201,277. She plans to put $44,946 toward a down payment…

A: The monthly payments can be ascertained from the present value of annuity function.

Q: Rachel and Eddy are buying a home for $875,000 by obtaining a 5-year closed mortgage for $700,000.…

A: Amortization of a loan refers to the systematic payment of the loan at regular intervals. These…

Q: . Find the monthly payment (including taxes and insurance). U

A: Information Provided: Downpayment = 20% Amount = $310,000 Interest rate = 4% Term = 360 years Taxes…

Q: Michelle purchases a retirement annuity that will pay her $3,000 at the end of ever months for the…

A: Purchase price is the present value of the payments from the annuity based on the period and…

Q: Sarah secured a bank loan of $155,000 for the purchase of a house. The mortgage is to be amortized…

A: When a loan is taken to buy a big ticket item like a house the borrower usually makes monthly…

Q: Ben and Zhang Manchester plan to buy a condominium. They will obtain a $214,000, 15-year mortgage at…

A: Monthly payments for this case will be the sum of monthly installments that will be paid on the…

Q: A couple buys a $190,000 home, making down payment of 16%. The couple finances the purchase with a…

A: Price of the home = $190,000 Down payment = 16% Loan amount (PV) = 190,000*(1-0.16) = $159,600…

Q: Bill and Susan bought a home for $190,000 and made a 20% down payment. They got a fixed mortgage at…

A: Computation as follows: Hence, the monthly payment is $881.54.

Q: Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per…

A: The concept of time value of money will be applied here.   The cost of the house will be the sum of…

Q: Bridgette can afford to make monthly payments of $800 towards a mortgage, and wants to fully own her…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: A couple wishes to borrow money using the equity in their home for collateral. A loan company will…

A: Mortgage loans are paid by equal monthly payments that carry the payment for interest and payment…

Q: Patty purchases a $240,000 house. She pays $40,000 down and takes out a 25 year mortgage with…

A: MortgagesA mortgage is a legal agreement between a lender and a borrower in which the borrower…

Q: Victoria buys a property for $2,500,000 by paying $500,000 down payment and the rest on a 15-year…

A: The amount taken on credit or financed by the person is ascertained by deducting the down-payment…

Q: Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of…

A: In this case Wilma will make fixed monthly payments. The amount of these payments will be the same…

Q: loan, what amount of money will be required to pay the down payment, the origination fee and the…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: A retired couple buys a new recreational vehicle (RV) for $42,000.00. They make a down payment of…

A: Future Value The value of an asset at a future date is its future value. The present value is…

Q: She will owe $____ on the car immediately following the 18th payment. A. 18,858.19 B. 18,531.57…

A: Monthly payments refer to the set sum of money that a borrower must pay back on a loan each month.…

Q: Cindy and Rick purchased a home for $145,000 and financed it with a 30-year fixed-rate loan at 6.25%…

A: Introduction Mortgage Loan: A mortgage is a loan that a borrower takes out to buy or retain a house…

Q: Ben and Carla Covington plan to buy a condominium. They will obtain a $224,000, 30-year mortgage at…

A: Given information, 30-year mortgage at 7.0 percent =$224,000 Payment factor at 7%, 30 years is…

Q: Megan takes out a car loan for $13,000. She intends to make monthly payments for 5 years to pay off…

A: We take loans to make purchases for a car, house etc. The loan is repaid by making fixed periodic…

Q: Bill and Susan bought a home for $190,000 and made a 20% down payment. They got a fixed rate…

A: Computation:

Q: Jenelle bought a home for $370,000, paying 18% as a down payment, and financing the rest at 4.6%…

A: Purchase price of House = $370000 Down Payment = 18% Financing for 30 Years Rate = 4.6%

Q: Ben and Zhang Manchester plan to buy a condominium. They will obtain a $191,000, 25-year mortgage at…

A: Monthly payments for this case will be the sum of monthly installments that will be paid on the…

Q: Stephanie purchases a retirement annuity that will pay her $3,000 at the end of every six months for…

A: formula for annuity PVA=A×1-11+rmn×mrm where, r=rate of interest m =frequency of compounding A=…

Q: im and Joan Miller are borrowing $120,000 at 6.5% per annum compounded monthly for 30 years to…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Scott & Rebecca can afford to pay $4,000.00 each month for a mortgage. Their credit union is…

A: This pertains to the concept of time value of money. Amount deposited or paid periodically is an…

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.