Bill and Susan bought a home for $190,000 and made a 20% down payment. They got a fixed mortgage at 3.5% for 20 years. What will their payments be monthly

Q: the monthly payments? $ 852.09 heir loan balance right after they have made the

A: Note : Only first three parts will be answered.  Given information : Price of home $138,000…

Q: The Wade family is interested in buying a home. The family is applying for a $200,000 30-year…

A: To find the monthly mortgage payment, we can use the formula for a fixed-rate mortgage…

Q: Frank and Fatima decide they will buy a two-bedroom garden-suite, with a 5750,000 mortgage from…

A: Principal (p)= $750,000 Rate (r)= 2.7% Time (t)= 5 years

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: Payoff amount refers to the amount which is required to be paid as principal amount of the loan. The…

Q: Chelsea and Bill are buying a house on a 30-year mortgage.  They can afford a $1200 per month…

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

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: Diego is getting a mortgage for $320,000 at a rate of 4.5% for 30 years. What is his monthly payment…

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

Q: Roger and Susan are negotiating a mortgage on a new home. They have decided that the maximum…

A: Mortgage loans are secured loan and payble by easy monthly installments that carry the payment for…

Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…

A: Given:

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: Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the…

A: Monthly installment = loan / cumulative PV factor Monthly installment = loan / PVAIF (0.308333%,…

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

Q: Mariam is currently renting an apartment for R.O.725 per month and paying R.O.275 annually for…

A: Lease- Lease agreements are contracts or instruments that transfer property from one person to…

Q: How much does she still owe when there is 1 year left on the loan?

A: Interest is charged by the lender on the amount of loan taken. At the initiation of loan repayment,…

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

A: Loans are paid by the monthly payments and these are equal monthly installments and these carry the…

Q: Donald and Barbara have 30-year $155,000 mortgage at 7.68% compounded monthly.     (a) What was…

A: Mortgaage loan = $155000 Time(n)              = 30 year interest (r)           = 7.68%p.a

Q: How much will they have in this account at the end of 1 year?

A: Information Provided: Term = 1 year Interest rate = 24% compounded monthly Monthly deposit = $1000…

Q: Jennifer buys a $300,000 house and pays $100,000 down. The loan is for 30 years and is at 4%…

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

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: A couple requires a mortgage loan of $182,000. They figure they can afford $1400 a month. If they…

A: A mortgage refers to a covered loan that is taken out for the purchase of a property which itself…

Q: Maria and John have been renting a small apartment but decide to purchase a house. The one they have…

A: Given information: Selling price: $300,000 Down payment : 20% Annual interest rate: 3.125% Time…

Q: Sonia buys a house for $250,000. she makes a down payment of 15% of the purchase price and takes a…

A: Cost of house = $ 250,000 Down payment = 15%

Q: Leon wants to save a classic car so he deposits $1500 at the end of the years into a savings account…

A: We need to use future value of ordinary annuity formula to calculate worth of deposit after 5 years.…

Q: offered her a 30-year fixed rate mortgage at 5.83%. What will be Angelina's monthly mortgage…

A: Information Provided: Home cost = $417,000 Down payment = $26,000 Interest rate = 5.83% Years = 30…

Q: Lucky Louie wants to buy a car that costs $26,750. The interest rate on his loan is 5.33 percent…

A: Car cost = 26750 Interest on loan = 5.33% Years = 7 Compounded = Monthly  PMT find out using Excel:…

Q: A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% APR compounded…

A: Loan or mortgage amortization refers to the repayment of loan amount. In the process of amortization…

Q: Anna and Bob have decided to buy an apartment. The cost of the apartment is RM150,000. They can get…

A: Monthly mortgage payment will depend on the amount of loan, interest rate and the payment period.…

Q: Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4%…

A: Monthly payments is calculated by EMI formula i.e. present value of annuity formula. For calculation…

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: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

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: Gerritt wants to buy a car that costs $30,750. The interest rate on his loan is 5.65 percent…

A:

Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…

A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…

Q: Alan's monthly payments of $600 will pay off his mortgage loan in 7 years and 5 months. The interest…

A: Here, Monthly Payment (PMT) is $600 Interest Rate (r) is 6.6% Compounding Period (m) is Monthly i.e…

Q: A year ago, a newly married couple decided not to buy a house, and they were looking at a house with…

A: Since you have posted a question with multiple sub parts, as per answering guidelines we shall be…

Q: Jake just got a ​$96000 mortgage in order to buy a new​ home, and he was able to get a 30 year loan…

A: Loan Amount (pv) = $96,000Interest Rate (rate) = 5.5%Time Period = 30 YearsNumber of Payments in a…

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.