A customer wants to buy a house with a cash value of 1,000,000 riyals, and the customer will pay 40% of the house’s price in cash, and the bank will finance 60% of the house’s value. If the customer wants to pay the rest of the amount in installments over a period of ten years at a profit rate of 7.5% annually, then the total value of the house will be That the customer pays 1.75 million riyals (true or false)??

Adam  who works for apple, buys a car in boston with a full price of $858,000. Adam will pay 10% of the full price as a downpayment, and will borrow the rest on a 30-year term loan. His  annual rate of interest  will be  loan is 6%, and is compounded monthly. What will the monthly payment be?

You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing costs are estimated to be 3.5% of the loan value. You have an annual salary of $50,000. The interest rate on the loan is 5.75% per year with monthly compounding for a 20-year fixed rate loan. (a) The bank is willing to allow your monthly mortgage payment to be equal to 30% of your monthly income. Calculate the maximum amount the bank will loan you?  (b) What is the maximum amount you can offer for the house if you borrow the maximum amount found in part (a)?

Mr Teo wants to buy a house. His annual income is $48,000. The bank is willing to lend an amount that can be serviced by monthly payments equivalent to 35% of his monthly income. The interest rate on the bank loan is 4.8% per year with monthly compounding for a 20-year fixed rate loan. The real estate agent had advised Mr Teo to set aside $10,000 for initial down payment and transaction costs. Transaction costs are estimated at 1% of the loan. At the same time, Mr Teo plans to make a series of deposits in an individual retirement account. He had hoped to deposit $10,000 today, $20,000 in two years and $30,000 in five years. The interest rate offered is 3% per annum. He is worried that his retirement plan may be affected if he uses his existing cash of $10,000 to fund the down paymentand transaction costs of the resale flat. Mr Teo’s financial planner would like to recommend that Mr Teo invest in a portfolio of small-cap equities to generate higher returns. The portfolio has a beta of…