Suppose you take out a 30 year mortgage for $ 225000 at 6% interest. The monthly payments on this loan are $ 1348.99. If you pay an extra 20% per month on your mortgage, how soon will you pay off the loan?

Q: Suppose you take out a 30 year mortgage for $ 200000 at 8.5% interest. The monthly payments on this…

A: Here,

Q: What size mortgage can you afford if you can make a monthly payment of $1,200 per month for 30…

A: Mortgage we can afford is present value of monthly payments

Q: You can afford to pay $750 per month for mortgage payments. How large a loan can you afford if the…

A: A mortgage is one kind of secured loan. When the borrower is unable to repay the principal or…

Q: You can afford a $850 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: You want to take out a $179,000 mortgage (home loan). The interest rate on the loan is 4.1 %, and…

A: After making payments for 15 years, you will still owe approximately $116,143 on your mortgage.…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. b. How much…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: Mortgage refers to borrowing an amount for the purchase of an asset and in return borrowed amount is…

Q: Suppose you obtain a mortgage loan of $210,000 at an annual interest rate of 5.0%. How much less is…

A: The interest paid increases as the term of the loan increases.

Q: 11) You buy a $550,000 house and pay $200,000 down. The loan is for 25 years and is at 4% monthly…

A: Mortgage is a value which is borrowed from other sources like bank and repay this amount later with…

Q: Suppose you are buying your first condo for $240,000, and you will make a $15,000 down payment. You…

A: Monthly payment refers to the fixed amount of money that is due each month as part of a loan or…

Q: Suppose you take out a 30-year mortgage for $ 275000 at 8.5% interest. The monthly payments on this…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Suppose you take out a 30-year mortgage of $100,000 with a fixed interest rate of 5 percent. You…

A: given, p = $100,000 r = 5% m = 12 n = 30

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 27000 at the time…

A: Compound = monthly = 12 Present value = pv = $27,000 Interest rate = 8 / 12% Time = t = 10 * 12 =…

Q: Suppose you are buying your first condo for $300,000, and you will make a $15,000 down payment. You…

A: The objective of this question is to calculate the monthly mortgage payment for a condo purchase.…

Q: You have just applied for a 30-year $100,000 mortgage at a rate of 10%. What must the annual payment…

A: using excel Pmt function PMT(rate,nper,pv,fv) rate =10% nper =30 pv =-100000 fv =0 compute pmt

Q: Suppose you found your dream house and you intend to buy it with a $197,705, 16-year, 5% APR…

A: Loan Balance at the End of Year 2Here's how to calculate the loan balance at the end of the year 2…

Q: Suppose you take a 30-year fixed-rate mortgage loan for $600,000 with a mortgage rate of 6%.

A: in this we have to calculate annual payment and than find out how much is paid and how much is…

Q: You want to take out a $304,000 mortgage (home loan). The interest rate on the loan is 4%, and the…

A: An amortized loan refers to a type of loan that is repaid over a set period through regular…

Q: a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: A) Annual mortgage payment is to be calculated as given below: The result of the above table is:…

Q: Suppose you want to purchase a $ 210000 house. If you put 20% down and finance the rest in a 15 year…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 9% interest. The monthly payments on this…

A: We need to used NPER function in excel

Q: You’ve just taken out the $100,000, 30 yr mortgage at 6%.  When will the mortgage be paid in full…

A: Loans are paid by equal monthly payments which carry the payment of interest and payment of…

Q: Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 30 year…

A: The monthly payment can be calculated with the help of present value of annuity function.

Q: . What are the monthly loan payments? Enter your response below.

A: The monthly payment on a loan is the set amount that is recurrently paid to the lender over the…

Q: You are buying a house priced at $654,125. You plan to pay 20% of the price for down payment and…

A: A mortgage loan is a loan provided by a bank or lending institution to a borrower for the purpose of…

Q: Suppose you take out a 30 year mortgage for $ 200000 at 7.75% interest. The monthly payments on this…

A: Time period with the new monthly payments and given loan amount and interest rate is calculated by…

Q: You can afford a $900 per month mortgage payment. You found a 30-year loan at 7% interest. How big…

A: The present value of an annuity is the current worth of a cash flow series at a certain rate of…

Q: Suppose that you are currently making monthly paymentson a $163,133.00 20-year mortgage at 3.84%…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 34000 at the time…

A: Loan amount (P) = $34000 Monthly interest rate (r) = 0.00625 (0.075 / 12) Monthly period (n) = 120…

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: Given, Loan amount = $230,000 years =30 rate = 6%

Q: If you could pay for your mortgage forever, how much would you have to pay per month for a…

A: A mortgage refers to a loan taken out to purchase property with the property itself acting as…

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.