You are buying a house for $130,000.00 with a downpayment of $26,000.00. The loan will be paid back over 20 years with monthly payments of $582.01. If the interest rate is 3.1% compounded monthly, what would the smaller concluding payment be? The concluding payment would be $ (Round to 2 decimal places.)
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A: Loan amount (L) = $6000 Quarterly payment (Q) = $185.41 r = 5.8% per annum = 1.45% per quarter
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A: Using excel PMT function to calculate the yearly payment
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A: Firstly, calculating PMT with annual compounding:
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A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%
Q: If you have $4500 to invest now, and will need a total of $25,000 -- 10 years from now, determine…
A: Amount available now (PV) = $4500 Period = 10 Years Monthly period (n) = 10*12 = 120 Interest rate =…
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A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.
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A: Calculation of the initial monthly Payment is shown: Formulation is shown: To open the "PMT…
Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest…
A: The future value of an amount is the future worth of an amount calculated based on the time value…
Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…
A: Future Value = Present value ( 1 + i )n
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A: EAR: EAR stands for Effective Annual Rate, and it is the interest rate. Compounding periods are…
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A: Loan Amount = 10,000 Interest Rate = 14% Annual Compounding Time Period = 4 years End of year…
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A: In this problem we have to calculate unpaid monthly instalments and calculate present value of that.
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: Equity in a home refers to how much of that home's value a person has already invested in it.
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A: Whenever loan is taken, interest is required to be paid on that loan. That interest calculation can…
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A: Loan means lending money by one or more individuals or organizations to other individuals or…
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A: Given: Loan = $60,000 Interest rate = 12% Year = 5
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A: Here, Loan Amount is $100,000 Monthly Instalment is $500 Effective Annual Rate is 5%
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A: Given:
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A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…
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A: Loan Amount = $11,500 Time Period = 5 Years Interest Rate = 9% compounded monthly
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A: Loan amount = Monthly Payment * [1-(1+i)^-n]/i + Final Payment/ (1+i)^n 170000 = Monthly Payment *…
Q: will we owe more or less than $200,000 (half the original loan amount)?
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Q: How long will it take to pay off a loan of $47,000 at an annual rate of 8 percent compounded…
A: Solved using Financial Calculator PV = 47,000 PMT = 650 I/Y = 8/12 = 0.6666666667 CPT N = 99.0104…
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A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
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A: Mortgage a is long-term loan contract which requires the borrower to pay periodic payments with…
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A: An amortization table is a table that helps to compute the periodic payment, interest paid,…
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A: Here we will use the concept of time value of money. As per the concept of time value of money the…
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A: Loan carry interest rate and both are paid by the equal periodic payments.
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- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ 181800 b) What will your monthly payments be if the interest rate is 6%? 1089.98 C) What will your monthly payments be if the interest rate is 7%? Submit Question
- You are buying a house for $200,000.00 with a downpayment of $40,000.00. The loan will be paid back over 15 years with monthly payments of $1,307.33. If the interest rate is 5.5% compounded monthly, what would the unpaid balance be immediately after the twenty-ninth payment? What is the equity after the twenty-ninth payment? The unpaid balance would be $ (Round to 2 decimal places.) The equity would be $ (Round to 2 decimal places.)Suppose you are buying your first home for $210,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Select the correct answer. a. $1,231.53 b. $1,233.53 c. $1,232.53 d. $1,234.53 e. $1,230.53there is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20 years at a 2% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel.
- Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.40% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Group of answer choices $831.93 $857.64 $753.30 $714.27 $794.39Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…Suppose you are buying your first condo for $250,000, and you will make a $7,500 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $1,000.00 O $1,088.93 O $1,122.61