Find the monthly amortization of the loan.​

Q: Example: In this exercise prepare an amortization schedule showing the payments for each loan. Joan…

A: PV = $20,000r = 7% / 2 = 0.07 / 2 = 0.035 (semiannual interest rate)n = 5 years * 2 = 10 payments

Q: A property has a FMV of $7,500,000. If the property owner can only secure a loan with an LTV of 70%,…

A: Variables in the question:FMV=$7,500,000Loan amount=70% of FMV=70% x $7,500,000 =$5,250,000N=30…

Q: We will use Excel PMT function to calculate the payment Rand then create an amortization schedule…

A: PMT function in excel is used to calculate the amount of payment received or paid by the individual.…

Q: a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the…

A: Amortization Schedule: It is a table containing details about each periodic payment. It includes…

Q: Georgia applied for a home mortgage of 75,000 to finance the purchase of a new home for 30 years.…

A: Loan amount (PV) = 75,000 Annual interest rate (r) = 14% Number of annual payment (n) = 30

Q: A bank is willing to lend $20,000 for a home improvement loan to be repaid monthly over 5 years…

A: From the question, we can identify the following variables:Principal amount (P): This is the amount…

Q: Suppose you loan $10,000 for 1 year to an individual who agrees to pay you interest at a compound…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: 1. Jeremiah has 3 years to repay a $55000 personal loan at 6.55% per year, compounded monthly. a.…

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

Q: A couple purchase a home and sign a mortgage contract for $150000 to be paid monthly over 25 years.…

A: a. Calculate the monthly payment as follows: Monthly payment is $1,157.72

Q: You plan to purchase a $290,000 house using a 30-year mortgage obtained from your local credit…

A: formula in the below table : Cell reference  ABCDEFGH11 B C D E F G H 22 INTEREST RATE =7.25%/12…

Q: For a student loan of $20,700 at 2.75% for 20 years, complete the following. (a) Calculate the…

A: Loan amount = $20,700Interest rate = 2.75%Number of years = 20 years

Q: b) You have decided to buy an apartment costing $140,000. At preseñt you have $10,000 to be paid as…

A: Answer : Cost of Apartment = $140,000 Down payment = $10,000   Loan = Cost of Apartment - Down…

Q: You receive a 10-year subsidized student loan of $29,000 at an annual interest rate of 4.8%. What…

A: Loan payments are given by, L = E(1-(1+r)^-n)/r Where, E = payment = ?? r = interest rate = 4.8%/12…

Q: You plan to purchase a $240,000 house using a 30-year mortgage obtained from your local credit…

A: We need to use PMT function in excel to calculate monthly payment to pay off mortgage loan.The…

Q: If you deposited sum of 200 JOD at the beginning of each month for 20 Years at an annual interest…

A: There are three number of questions which has been asked by the student but as due to guideline we…

Q: You plan to purchase a $240,000 house using a 30-year mortgage obtained from your local credit…

A: Loan amortization is the process of repaying a loan over time with regular payments that cover both…

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: 15 What is their monthly payment? Roune How much will they pay over the cour $ With this payment,…

A: To determine the monthly payments we can use the PMT function in excel.  The syntax is: PMT (rate,…

Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…

Q: Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to…

A: The mortgage payment are amortize over 10 years as per the schedule shown in excel.

Q: You want to build a $40,000 shed on your property in 3 years. You find that the bank can offer…

A: The cost of the shed after 3 years will be $40,000 and if the shed is built today, the cost will be…

Q: (3) A man has a loan of 500,000 for 10 years at 6.5% annually with annual payments. His payments are…

A: When a person takes a loan then in that case periodic payments usually have to be made.   The…

Q: If you took out a 30-year loan to buy a house for $1 million at an interest rate of 5%, how much…

A: The present value of monthly payments should equal the loan value.

Q: You plan to obtain a $10000 loan from a furniture dealer at 10% annual interest rate that you will…

A: Annual loan payment is the repayment of loan annually for the period of loan, that includes interest…

Q: An amount of $15,000 is borrowed from a bank to finance a purchase of a new car for a period of 4…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: An employee obtained a loan of P100,000.00 at the rate of 6% compounded annually in order to build a…

A: The series of monthly payments is a form of annuity wherein an equal amount is paid every month.

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: The objective of the question is to calculate the annual payment for a loan of $1,000,000 at an…

Q: Find the monthly house payments necessary to amortize each  loan. Then calculate the total payments…

A: Under EMI Payment, Both Principal & Interest amount are paying back to the lender over a…

Q: If you lend $3000 to a friend for 15 months at 10% annual simple interest, find the future value of…

A: Future Value of Loan = Amount of Loan + interest on Loan

Q: Excellent bank has offered you, a GHC 60,000 35year loan to purchase equipment in your Factory. The…

A: Interest is an amount which is charged on deposited or borrowed amount on loan period. It is a cost…

Q: Suppose you are a relationship manager at an international bank. A customer who recently got…

A: To create the amortization table, first we will have to find the EMI. To find the EMI, we will use…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: Suppose Bill purchases a car and he is going to finance $12,000 for 24 months at an APR of 5.1%…

A: compound = monthly = 12 Present Value = pv = $12,000 Time = t = 24  Interest rate = 5.1 / 12 =…

Q: Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was…

A: The term "Amortization" refers to the process of repaying debt over time by making regular principal…

Q: Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The…

A: A = P1+r100n Where  A = Amount P = Principal r = Rate of interest n = Number of periods

Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…

A: Non-Subsidized Student Loan per year = $11,000 Time Period of Non-Subsidized Student Loan = 4 Years…

Q: You receive a 10-year subsidized student loan of $19,000 at an annual interest rate of 6.8%. What…

A: Using excel PMT function to calculate the monthly payment

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: Excellent bank has offered you, a GHC 60,000 35year loan to purchase an equipment in your Factory.…

A: GHC=60000 After 35 year the loan amount will be =$134,964.00 Effective Annual Interest Rate-…

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.