Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this loan are $ 1621.50. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments

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

A: Here,

Q: You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Suppose you are buying a house. You find the perfect one for $215,000. The bank offers you a 30-year…

A: When you take out a loan mortgage then you make fixed periodic payments. In this case the payments…

Q: Suppose you want to purchase a $ 240000 house. If you put 20% down and finance the rest in a 25 year…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: pose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 y PR of…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: When a loan's conditions, including its interest rate, payment schedule, or other terms, are…

Q: You plan on borrowing in order to buy a condo. You want to borrow for 30 years and make monthly…

A: Loan amount refers to an amount that is borrowed by the borrower from the lender at a specified rate…

Q: e you take out a margin loan for $77,000. You pay an effective rate of 7.0 percent. If you repay the…

A: Each and every loan attracts interest and interest is the amount paid above the loan. Interest…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

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 found your dream house. It will cost you $300000 and you will put down $45000 as a down payment.…

A: Purchase Price of House= 300,000  Down payment = 45,000  Loan Amount = Purchase Price - Down payment…

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 have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. a. Find the…

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

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

A: A mortgage is a property loan given by banks to their customers for purchasing a house or other real…

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: What's the monthly payment on a 30 year 7% mortgage if you borrowed to buy the house for 200,000…

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

Q: You are going to buy a house and borrow $542474 with a 30-year mortgage.  Your interest rate is…

A: The future value concept is widely used in finance and economics, including in the areas of…

Q: The discount rate is _ % per month. (Round to five decimal places.) The monthly mortgage payment is…

A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…

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: 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: 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: 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: You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big…

A: a) Following information are given in the question:

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 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: 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: You found your dream house. It will cost you $300000 and you will put down $45000 as a down payment.…

A: The question is calculation of amortization of mortgage loan at fixed monthly repayments. Formula…

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.