You buy a house and finance $250,000 at 4% per year. One loan is 30 years (360 monthly рayments) and one is 15 years (180 monthly payments). What is your payment for each loan and what is the total paid over the life of the loans (again, assume that you do not make any early payments)?

Q: You want to buy a $183,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The down payment is the amount of cash paid while purchasing the home. The down payment decreases…

Q: You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: We have a mortgage transaction on a home. We have to find some amounts based on the mortgage.

Q: ou borrow $333,000 to purchase a home. Your mortgage requires monthly payments over the next 23…

A: Loans are paid in equal monthly installments and these carry the payment for interest and payment…

Q: Suppose you lend ​$11,500 to a friend at an APR of 10.00​%. Your friend will pay you back beginning…

A: The periodic payment can be made monthly, quarterly, semi-annually or annually. Periodic payment is…

Q: ou can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30…

A: When we make a mortgage payment we pay fixed monthly amounts as payments towards the mortgage.…

Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…

A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…

Q: What is the payoff amount for the loan?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

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: Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and…

A: The current price of the house is computed by computing the present worth of the house. The formula…

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: A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly…

A: Formula EMI = PV/[1-(1+R)-N]/R Where EMI - Equal monthly instalment  PV - Loan amount i.e. $10,742 R…

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: You want to purchase a house valued at $200,000.  After a downpayment, you can finance the house…

A: Value of the house = $200,000 Number of years of mortgage = 20 Number of periods (n) = 20*12 = 240…

Q: You decide to quit using your credit card and want to pay off the balance of $11,800 in 5 years.…

A: Given Amount of debt is $11800. Term is 5 years Interest rate is 16.05%

Q: You purchase a house and obtain a 30-year loan of $198,000 at an annual interest rate of 8.30%.…

A:

Q: You want to buy a $230,500 home. You plan to pay 20% as a down payment, and take ou 5% for the rest.…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Suppose you have good credit and can get a 30 year mortgage for $100,000 at 5%.  What is your…

A: Amount of Mortgage (pv) = $100,000Time Period = 30 yearsNumber of Payments in a Period = 12Total…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: The loan is an agreement between two parties where an amount is forwarded on a promise of repayment…

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

A: A home loan is taken in order to finance the purchase of a house. The borrower makes regular…

Q: ou take out a 6-year amortized loan to buy a new car. After making monthly payments of $242.30 for 4…

A: Amortized loan A loan with periodic payments that are applicable to the principal as well as on the…

Q: What must be your annual quoted rate (APR)? After paying the loan for 5 years, you’re allowed to pay…

A: The annual rate of interest for a loan, often referred to as the annual interest rate or annual…

Q: What is the annuity payment?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Suppose that you and your friend both need to borrow the same amount of money. You borrow money…

A: In compounding there is interest on interest also including the principal amount and due to which…

Q: You want to buy a $248,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Loan: It represents the amount borrowed by the borrower for the purpose of purchasing assets like…

Q: You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company…

A: The Annual Percentage Yield (APY) is a financial metric that quantifies the annualized rate of…

Q: (b) According to the new renumeration scheme, the starting pay of a technician is RM2029 per month…

A: Meaning of Remuneration:- It's the compensation that an employee gets. It is the base salary and the…

Q: After making payments of $901.10 for 6 years on your 30-year loan at 8.9%, you decide to sell your…

A: Monthly payment (C) = $901.10 Monthly interest rate (r) = 0.00741666666666667 (i.e. 0.089 / 12)…

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: You take out a 14-year personal loan for $13000 at rate of 8.1% which compounds 4 times per year.…

A: A loan refers to a contract where a borrower is provided money by the lender on the promise of…

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: The entire amount needed to fully satisfy a debt or other financial obligation is called the payoff…

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.