When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.2% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. How long will it take to pay off this new loan if they pay $1200 each month?

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

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Q: Mike and Beth would like to have an opportunity to buy a home in the next five years.  They…

A: Future Value: It represents the expected value of the present cash flows compounded over the period…

Q: new house for $ 120,000. He was able to make a down payment equal to 25% of the value of the house;…

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Q: Tina decided to buy her first home. She found a house for $153,650. She will need to finance…

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Q: Susan Orman wants to pay $1500 semiannually to her granddaughter for 10 years for helping her around…

A:

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

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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: Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual…

A:

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

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Q: Peter was receiving rental payments of $2,000 at the end of each month from his tenants of his…

A: A perpetuity is like an annuity in which cash flows are streamed for an indefinite period of time.…

Q: Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for…

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Q: To offset the cost of buying a $120,000 house, Jose and Sophia borrowed $25,000 from their parents…

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A: Given: Cost of house = $930,000 Down payment = 30% Interest rate = 2.19% Years = 20

Q: Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of$120,000.…

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Q: (a) What will be the monthly payment? Susan will pay $ each month. (Round to the nearest cent as…

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…

A: Installment amount is the amount of periodic payments a borrower has to make to its lender in order…

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Q: . Find the monthly payment (including taxes and insurance). U

A: Information Provided: Downpayment = 20% Amount = $310,000 Interest rate = 4% Term = 360 years Taxes…

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A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 88) Kathy is buying her first home.  She is financing a total of $185,000 at an APR of 5% for 25…

A: "Since you have asked multiple questions, the first question was answered for you. If you want the…

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A: The future value is the future worth of the amount that will be paid or received in the future.

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A: Computation as follows: Hence, the monthly payment is $881.54.

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Q: When Jimmy and Jamie bought their home, they had a 4.2% loan with monthly payments of $978.03 for 30…

A: Answer $200,000 at 4.2% interestwith 360 monthly paymentsTotal Payments = $352,090.69 Total Interest…

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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.