Donna wants to buy a house for $900,000.00. She makes a 15% down payment and borrows the rest by getting a 30-year mortgage. Her monthly mortgage payment is $3,803.75. What is the principal of her mortgage? What is the total she will pay on the loan?

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Mr. and Mrs. Murthy have a totally monthly gross income of $6000.00. They are interested in…

A: GDSR is a metric that measures housing costs as a proportion of the gross income of the borrower.

Q: Aaron is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside…

A: The is based on the calculation of mortgage loan and value of property as per eligibility of loan .…

Q: Tomás bought a house with a mortgage of $328,300. The mortgage is being finance interest rate of…

A: loans are paid by the monthly payments and these payments carry the payment of loa amount and…

Q: Salama wants to buy a car worth OMR. 10000, for which she has been saving and investing in bond an…

A: Annuity refers to the set of periodic payments that an investor or depositor makes into an…

Q: 5. Erin borrowed $200,000 fixed-rate 30-yr mortgage when mortgage rate was 4.5%. How much total…

A: Amortization refers to the systematic and regular repayment of loan and interest spread over the…

Q: Martha Diaz needs an investment loan. She gets a simple interest amortized loan for $12,000 at 8.5 %…

A: Interest is the cost of borrowing the money.

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: Sandra gets a $250,000, 30 year mortgage with annual payments of 4.0% rate.  What is the balance of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Aaron is planning to buy an apartment. He earn a monthly income of RM40,000 and plans to put aside…

A: Using excel PV function to calculate the loan amount he can afford to have.

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: Jack borrows $28,163 to pay for a car. The loan carries an annual rate of 5.7% and he wants to be…

A: ANSWER: Interest on loan = $6,021.6163328  (or) $6,022 EXPLANATION:- Present Value (PV) = $28,163…

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: Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a…

A: APR stands for Annual Percentage Rate. It is a standardized way of expressing the total cost of…

Q: Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a…

A: Compounding is an important technique which increases the effective interest rate. Effective…

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: A woman buys a house for $265,000. She pays $70,000 down and takes out a mortgage at 6.6% on the…

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

Q: Rachel purchased a car for $20,000 three years ago using a 4-year loan with an interest rate of 9.0…

A: Annuity refers to a series of regular payments made over a set or defined period. When the payments…

Q: The Allens are considering buying a house and need to figure out what they can afford and what a…

A: Back-end Debt to Income ratio computes all monthly payments as a % of the gross monthly income.  We…

Q: What house value can Betty afford? Betty's annual income is $90,000 and she has monthly credit…

A: Here, To Find: Value of the house =?

Q: b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly…

A: As per our policy, we only answer one question when many different questions are provided. The first…

Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

A: Loan Amount = 400,000 Time Period = 20 years or 240 months Rate = 4.5% Continuous Compounding

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: Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid…

A: Given: Years = 30 Fixed interest rate = 5% Cost = $450,000 Down payment = 20%

Q: . Ji-Hoon wants to get a $500,000 3% 30-year mortgage in order to buy his first home. How much…

A: Loan amount (PV) = $500,000 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 30…

Q: Mye has a 15-year mortgage loan at a compounded annual interest rate of 9.3%. After making annual…

A: Given that: Annual Cash flow=P11600 N=7 Years=7*12=84 Months r=9.3% annually= 0.93/12 Monthly =0.775…

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: Nick has just signed a 30-year, fixed-rate mortgage for $180,000 with a nominal annual rate of 7.6%.…

A: We need to use PMT and NPER function to calculate monthly payment and number of periods to pay off…

Q: 6. Smith is willing to spend $2,000 per month on her mortgage payment. If Smith obtains a fully…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

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: Rose believes that she can afford a monthly mortgage payment of $1,450.00. At a mortgage rate of…

A: > Given data: > The monthly payment is 1000 and the rate is 4.9% > The period = 25 years…

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: Janelle has a 30-year mortgage, but instead of making monthly payments, she is making rising…

A: a) What is a growing equity mortgage?  A growing equity mortgage is a type of fixed interest loan…

Q: 6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000.…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Arthur is planning on buying a house and needs to take out mortgage for $200,000 . He has two…

A: A mortgage refers to a covered loan that is borrowed to purchase a property which in turn acts as…

Q: 5. Hussein is purchasing a home for OMR200000. Me is making a 20% down payment and will sign a…

A: Given information The Purchase amount of Home = OMR 2,00,000 Down Payment = 20% ,Remaining Amount of…

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…

Q: Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%,…

A: The amortization is the systematic and regular repayment of loan and interest amount. Each payment…

Q: rtys have "$20, 000" in savings to use as a down payment on a new home. They also have determined…

A: Mortgage loans are secured loans and a home is collateral for that and mortgage homes make buying a…

Q: Rachel purchased a car for $17,500 three years ago using a 4-year loan with an interest rate of 10.8…

A: First we need to use monthly amortization formula below to calculate monthly payment.   Where PMT…

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.