Assume you borrow $200,000 from a bank today to buy a house at 4% interest for 30 years with monthly payments.  How much will the monthly payment be? How much interest will you pay over the course of the loan? How much equity do you have in the house after 6 years?

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…

Q: If you borrowed $200,000 to buy a house at 6% interest per year, compounded annually, and paid back…

A: Given information: Loan = $200,000 Number of years = 30 Compound interest rate = 6% compounded…

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: You invest $ 20.000 in a bank account to buy a house at annual interest rate 15 per year, compounded…

A: Given information: Present value is $20,000 Interest rate is 15% per year compounded monthly Number…

Q: A. A newly married couple decided to buy a brand-new car. The net amount of loan is Php 500, 000.…

A: Given: Loan amount = Php 500,000 Years = 3 Interest rate = 12%

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: PMT function gives the payment for the loan for the constant payment and the constant rate of…

Q: Suppose you wish to start up your coffee shop.  You need to borrow $50,000 today.  You intend to pay…

A: Using PMT function of the excel to calculate monthly withdrawals

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Given:

Q: You invest $ 1.000 in a bank account to buy a house at annual interest rate 14 per year, compounded…

A: Present Value (Investment in bank)= $1,000 Annual Interest rate (r)= 14% per year compounded monthly…

Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 5.84% interest. Suppose…

A: 30 years 15 years Purchase of house 425000 425000 Downpayment(25%) 106250 106250 Amount…

Q: You decide to buy a house costing $6,000,000.  You pay $1,000,000 down, and the remainder will be…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be…

A: Here, Value of House is $6,000,000 Down Payment is $1,000,000 Therefore, Loan Amount (PV) is:…

Q: You want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan…

A: Closing cost is the cost which has to be paid by either seller or the buyer to the government when…

Q: You are interested in buying a house worth P1,200,000. You paid P250,000 as down payment. In order…

A: Here, Note: As payment period is not given in the question, we are assuming it as yearly payments…

Q: In order to buy a car, you borrow $25,000 from a friend at 12%/year compounded monthly for 4 years.…

A: a.

Q: How much money was your existing mortgage loan for? suppose that 10 years ago you bought a home for…

A: Given information: Mortgage bought for $150,000 Down payment is 10% Interest rate is 9% Number of…

Q: you want to buy a $360,000 home. You pay 108,000 as a down payment and take out a 15 year loan at…

A: Outstanding balance is calculated by present value of annual payments left to be paid, so PV formula…

Q: sume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan…

A: solution given Annual deposit 2500 Interest rate 4% Number of years 5 years…

Q: 1. A man has a loan of 50,000 in a bank that gives 12% simple interest. How much is the interest if…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized…

A: "Hi, As you posted multiple questions, we will answer the first question for you as per guidelines.…

Q: Use a banker's year described above to answer this question. To complete the sale of a house, the…

A: Simple Interest: It is the interest charged on loan/savings account . Calculation: Daily interest is…

Q: .  You are purchasing a house for $310,000. You plan to take out a 25-year loan to pay for the…

A: a. The monthly payments will be $1812. Note: The calculation has been made on excel.

Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…

A: Loans are a way through which individual finance their big expenditures. These types of loans help…

Q: Suppose you want to buy a $148,000 home. You found a bank that offers a 30-year loan at 3.5%…

A: Loan Amount = $148,000 Time Period = 30 years Interest Rate = 3.5%   The calculation of the monthly…

Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…

A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…

Q: You buy a house and finance $250,000 at 4% per year. One loan is 30 years (360 monthly рayments) and…

A: Monthly payments is calculated by present value of annuity formula. r is annual percentage rate and…

Q: You buy a $225,000 house and take out a loan that covers that amount which charges 4.5%, compounded…

A: Given data; Loan amount = $225,000 interest rate = 4.5% frequency of compounding = monthly Life of…

Q: You want to take out a mortgage on a house worth $50,000 and pay it back in 10 years. Since your…

A: Here, Mortgage Amount is $50,000 Simple Interest Rate is 2% per month Time Period of loan is 10…

Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a…

A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.54% interest. Suppose…

A: a) Value of home = $475,000 Down payment = 30% = 30%*$475000 = $142500 Loan amount = $332,500 Number…

Q: Assume that you plan to buy a condo 5 years from now, and you need to save for adown payment. You…

A: Annuities are a fixed series of constant payments. These can be of two types: Ordinary – Payment is…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: It is assumed that repayments are made on annual basis.The purchase amount of home is $150,000. 10%…

Q: You take out a 20-year $280,000 mortgage loan with an APR of 6% and monthly payments. In 16 years…

A: Loan amount = $ 280,000 Annual interest rate = 6% Monthly rate = 6%/12 = 0.50% Loan period = 20…

Q: You buy a $250,000 house and pay $50,000 down.  The loan is for 25 years at 6% monthly. If you pay…

A: Using the PMT and NPER function in excel

Q: You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8%…

A: Monthly payments to be paid on the loan amount are calculated using the interest rate, loan amount…

Q: uppose you buy a home and finance $285,000 at $2,233.17 per month for 30 years. What is the amount…

A: Interest paid = total payment - financed amount

Q: Please use formula in solving.   You are interested in buying a house worth P1,200,000. You paid…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: Suppose you decide to borrow $330,000 of cash to purchase a house and take out a 20-year fixed rate…

A: Here, Borrowed Amount (PV) is $330,000 Interest Rate (r) is 8% Time Period of Mortgage  (n) is 20…

Q: Suppose you want to buy a $147,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: Assume that you plan to buy a condo 5 years from now, and you estimatethat you can save $2,500 per…

A: The question requires to calculate the future value of annual instalments deposited in a bank. We…

Q: Brendon Walsh wants to borrow $40,000 from the bank. The interest rate is 6% and the term is for 5…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: You want to buy a $156,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Loan amount = Cost of house - Down payment = $156,000 - (15% * 156,000) =$156,000 - $23,400 =…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: Price of Home = $525000 Inetest Rate(r) = 4.84%/12 = 0.4033% Downpayment = 30% Amount financed…

Q: he Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal…

A: Firstly need to use loan amortization formula below to calculate monthly payment of loan. PMT…

Q: You borrow $280,000 to buy a house. The mortgage rate is 4.5% and the loan period is 25 years.…

A: Given information:

Q: Brendon Walsh wants to borrow $30,000 from the bank. The interest rate is 6% and the term is for 5…

A: A loan is an agreement between two parties where an amount is exchanged in return for future…

Q: . You borrow 7,000 dollars to help pay your college expenses. You agree to repay the loan at the end…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.34% interest. Suppose…

A: Monthly payment: Monthly payment $1,854.655875 Answer: $1,854.66

Factors Affecting Housing Decision