A landlord needs to update a rental house due to it's age, so it can be habitable again. If he h to cover a $1,100.00 payment monthly for 2 years at 3% compounded monthly, how much can and still be able to afford the payment? (Round to 2 decimal places.) He can borrow $

Q: You're going to need a home . You can afford $1400 to put to your mortgage if the loan charges 6%…

A: Future value refers to the value of current assets at some future date based on the interest…

Q: The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and…

A: Mortgages are a sort of loan that can be used to buy or keep up a house, land, or another piece of…

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A: The excel formula to calculate the monthly payment is - Monthly payment = PMT (Interest…

Q: Tim wants to buy a new boat for &9,500. If the store is going to charge Tim 8% annual interest on…

A: in this we have to calculate total interest to be paid and total principal and then monthly payment.

Q: Tian can afford to put a down payment of $8,000 on a car. He can also afford to make monthly…

A: The time value of money is the concept that is widely used by organizations or individuals to…

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: Natasha is considering moving into a one-bedroom apartment in Winter Gardens. The apartment has a…

A: 1) Calculation of Application Fee:2) Calculation of Broker's Fee:

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A: Using excel PV function, to calculate purchase price of a house

Q: A young couple decide to take advantage the current first-time home buyer credit and buy a new…

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

Q: Barbara and Jerry can afford a mortgage payment of $1, 500 per month. If interest rates are 3.25%…

A: Mortgage payment = $1500Interest rate = 3.25%Maturity = 30 YearsTo find: Amount to borrow.

Q: You're moving to a new location and decide to purchase a new home. You find the house of your dreams…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You bought a house with a $378016 mortgage that you will pay off over 26 years.  Given your credit…

A: When buying big ticket items like a house we do not have the financial capability to pay for the…

Q: Maeve wants to borrow money to purchase a car.  They can afford to pay back $200 a month.  If they…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

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

A: Formulas:

Q: Maria and John decide to shop for furnishings for the new house.  They choose items that amount to…

A: Formula for simple interest  Future value =Principal + interest rate x number of years

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: 1. Nelson wants to buy a car that costs $42,000. He has arranged to borrow the total purchase price…

A: Using the PMT function in excel

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A: The future value concept is widely used in finance and economics, including in the areas of…

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A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: at minimum down payment must Asher make to keep his monthly payment at or below $500? und your…

A: Monthly payment of loan includes the payment of principal and interest payment that goes on changing…

Q: A couple with a newborn baby needs a new vehicle. They take out a $29,000.00 car loan at 8.9%…

A: Given: A couple with a newborn baby needs a new vehicle. They take out a $29,000.00 car loan at 8.9%…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $244 per month…

A: Future value refers to the future worth of a present sum. Annuity refers to the periodic payment…

Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

A: Mortgage loans are given on the basis of monthly income and other expenses related to the housing…

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A: Down Payment = 25,000 Monthly Payment = 1,250 Rate = 4%/12  per month Time Period (N) = 360 months…

Q: If you have a car loan with a monthly payment of $625.00 and a purchase price of $30,000 : a. How…

A: Given information,Monthly payment: Purchase price: Number of periods:  yearsCompounding frequency:…

Q: A landlord needs to update a rental house due to it's age, so it can be habitable again. If he has…

A: Loan: It represents the amount borrowed by the borrower from the lender. The lender charges…

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A: Here, Monthly Payment (PMT) is $390 Time Period (n) is 6 years Interest Rate (r) is 6.6% Payment…

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A: In simple interest there is interest on the principal amount only and no interest on interest in…

Q: A friend of yours bought a new sports car with a $4,500 down payment plus a $27,000 car loan that is…

A:

Q: 1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the…

A: Interest: It is the amount that is paid by the borrower to the lender for taking a loan. It is paid…

Q: You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you…

A: Simple interest is calculated by multiplying borrowed amount , interest rate and time.   Simple…

Q: Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment…

A: It is a case where the amount of loan to be borrowed by Dolph is to be calculated, based on his…

Q: A young married couple decide to take advantage the current first-time home buyer credit and buy a…

A: The maximum amount that can be borrowed is the present value of annuity.

Q: If you take out your mortgage on July 1, so your first monthly payment is due August 1, and you make…

A: First we are going to find the monthly mortgage amount by inputting the following values in a…

Q: A student can afford to spend no more 150 e per month on a loan to pay his college fees. If the…

A: Compound = monthly = 12 Payment = p = 150 Interest rate = r = 2 / 12% Time = t = 5 * 12 = 60

Q: You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year…

A: The amount that you can borrow today based on your ability to pay will be the present value of all…

Q: You are ready for buying your new car. After the downpayment, you need to pay $490 a month for five…

A: Loans are financial arrangements where one party, typically a lender, provides a certain amount of…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $551 per month…

A: Given, Amount of deposit is $551 every month Interest rate is 3% compounded monthly Term is 5 years

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.