which are arrangements for repaying a loan of $20 Mortgage C requires monthly payments at the en or 15 years at a stated annual rate of 6%. Mortga monthly payments, paid at the beginning of each r years, at a stated annual rate of 5.5%. Mortgage C monthly payment than Mortgage D. False True

Q: Determine the monthly principal and interest payment for a 20​-year mortgage when the amount…

A: The monthly payment can be computed using the payment per thousand dollars corresponding to the…

Q: If an adjustable-rate 20-year mortgage for $129,000 starts at 6.0 percent and increases to 6.5…

A: We will use the table provided in exhibit 7-7 to answer this question.

Q: Which of the following is not a primary function of Money? a. All the options are correct b.…

A: Money is any item or verifiable record that is generally accepted as payment for goods and services

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: What are the monthly payments (principal and interest) on a 18-year home mortgage for an $210,000…

A: To calculate the monthly payments on an 18-year home mortgage for a $210,000 loan with a fixed…

Q: a. What will be the loan balance at the end of year 1? b. If the interest rate increases to 13…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Please show reaekson and don't use hend raiting

A: To calculate the periodic payment in month 15 for a constant amortization mortgage (CAM) loan, we…

Q: Prepare an amortization schedule for the first 3 payments (in $) of a $66,000 mortgage at 5% for 20…

A: Present Value Annuity Factor=1-1+rate-timerate

Q: ou have taken out a $7.500,000 loan with a 4% interest rate, 30 year amortization and ten year term.…

A: Loans are paid by equal monthly payments and these payments carry the payment for interest and loan…

Q: n the first month's payment, how much principal will be repaid on a $250,000 15-year fixed rate…

A: Mortgage loans are secured loans and easy to pay by monthly payment that carry the payment for…

Q: A borrower has two alternatives for a loan: (1) issue a $390,000, 120-day, 8% note or (2) issue a…

A: The objective of the question is to calculate the interest expense and the proceeds received by the…

Q: 9. A borrower takes out a 30-year mortgage loan for $285,000 with an interest rate of 4.125%.…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: Complete the first payment of the amortization schedule. (Do not round until the final answer. Then…

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

Q: A floating rate mortgage loan is made for $12 for a 30-year period at an initial rate of 12 percent…

A: To calculate the loan balance at the end of year 1 for a floating rate mortgage loan, we can use the…

Q: Make an amortization table to show the first two payments for the mortgage. Amount of Annual…

A: Interest = Opening End of month principal * rate per period  Principal repayment = monthly payment -…

Q: A couple that borrows $300,000 at an APR of 4.8% compounded monthly on a 30- year mortgage has a…

A: Borrowed amount is $300,000 APR is 4.8% Compounded monthly Time period is 30 years Monthly amount is…

Q: Make an amortization table to show the first two payments for the mortgage. Amount of Annual…

A: Amortization is a repayment schedule which is generally used by lenders such as banks, financial…

Q: -year mortgage is amortized by making paym nths. If interest is 8.45% compounded annually tgage…

A: Mortgage loans make home buying quite easy and convenient and mortgage loans are paid by equal…

Q: What is the APR for a fed ra

A: APR means annual percentage rate. APR means the borrowing cost incurred by the borrower for a…

Q: A basic ARM is made for $203,000 at an initial interest rate of 6 percent for 30 years with an…

A: A loan is a financial agreement in which a party, often a financial institution or lender, lends a…

Q: Assume a borrower is given the following options for payment of a $100,000 loan: 5-year amortizing…

A: a) Option 1: 5 Year amortizing loan paying annual interest rate of 8% Payments to be made each year…

Q: help

A: Explanation: An amortization schedule is a complete table of periodic loan payments, showing the…

Q: A home buyer signed a 20-year, 8% mortgage for $72,500. Payments of the mortgage should be made…

A: This can be solved using the present value of an annuity concept.Annuity is…

Q: Your local bank has offered you a 15-year, $100,000 mortgag. Payments on the mortgage are quaterly…

A: RATE (QUARTERLY)=12/4=3%Mortgage term (QUARTERLY) = 15∗4=60

Q: A fully amortizing mortgage loan is made for $100,000 for 15 years. The interest rate is 6 percent…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Find the monthly payment needed to amortize principal and interest for the​ fixed-rate mortgage.…

A: Calculate the monthly payment as follows:

Q: Using a $400,000, 30-year monthly payment Priced Level-Adjustable Mortgage, assuming the "real" loan…

A: Given the values:Initial Loan Amount (P): $400,000Loan Term (N): 30 yearsReal Loan Rate (r): 5% per…

Q: Using a $400,000, 30-year monthly payment Priced Level-Adjustable Mortgage, assuming the "real" loan…

A: Unpaid mortgage refers to the remaining balance on a loan secured by real estate, typically a…

Q: You take out a traditional 30 year mortgage for $292,490. It has a fixed interest rate of 4.25% and…

A: EMI, or Equated Monthly Installment, is a fixed monthly payment made by a borrower to repay a loan,…

Q: 9. What is the payment commencing in month 49? 10. What is the loan balance at the end of 60 months?

A: A3/1 is the floating rate adjustable loan with the interest rate fixed for the first 3 years and…

Q: A fully amortizing CPM mortgage loan is made for $100,000 at 6 percent interest for a 30 year term.…

A: Several unrelated questions have been asked. The first question has multiple parts. All the parts of…

Q: You obtain a $365,000, 15-year fixed-rate mortgage. The annual interest rate is 7.25 percent. In…

A: The objective of the question is to calculate the total monthly payment for a 15-year fixed-rate…

Q: Consider a 48 month amortizing car loan with 6% APR and monthly payments. Which of the following…

A: Effective annual rate = (1+Monthly interest rate)12-1

Q: You have purchased a home for $515000 by paying a down payment of 18% and then refinancing the…

A: Homes are purchased by the mortgage loans by paying small down payments and rest is paid by the…

Q: What is the total interest paid on a for $200,000 loan with 30 year mortgage at 7% annual. Assume…

A: A mortgage loan is a special loan provided by financial institutions to their customers to purchase…

Q: The portion of the payment that is applied to interest in year 1-4 is

A: Simple interest is a method of calculating the charge on a loan. Simple interest is calculated for…

Q: n in an amortization table (in dollers) for a loan of $8,500 to be paid back over 2 years, at an…

A: Outstanding balance is the amount of loan remaining after payment of principal amount.

Q: floating rate mortgage loan is made for $100,000 for 30yrs at a start rate of 12% interest. The…

A: In this question principal at the end of year one would be the total mount paid in monthly…

Q: A floating rate mortgage loan is made for $155,000 for a 30 -year perlod at an Initial rate of 12…

A: a) Loan Balance at End of Year 1:• Loan Amortization: To determine the exact loan balance at the end…

Q: A floating rate mortgage loan is made for $180,000 for a 30-year period at an initial rate of 12…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

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.