You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 8% interest.a) How big of a loan can you afford?$b) How much total money will you pay the loan company?$c) How much of that money is interest?

Q: You get a $550,000 mortgage loan with 1¼ points. What dollar amount do you pay for points?

A: One mortgage point equal to 1 % of loan amount.

Q: The original amount that was borrowed for your home mortgage was 175,000 dollars, to be repaid…

A: Monthly payment (EMI) is calculated by present value of annuity formula. where r is APR and n is…

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

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 a buying a home for $425,000 and would like to determine the monthly mortgage payment. You can…

A: The excel formula to calculate the monthly payment is - Monthly payment = PMT (Interest…

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: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount = $26,100 Monthly payments = $989 Total finance charges = $9504 Loan period = 36 months…

Q: 27. You get an interest-only mortgage loan of $215,000 at 8.25%. For the first 2 years, your monthly…

A: Given, Mortgage Loan =$215000 Rate =8.25%

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: Suppose a bank offers you an 6 25% interest rate on a 30-year mortgage to be paid back with monthly…

A: Monthly payment (C) = $1700 Monthly interest rate (r) = 0.00520833333333333 (i.e. 0.0625 / 12)…

Q: HAN ON

A: Downpayment amount=20/100*124000=24800    So Loanable value =12400-24800=99200 Given interest rate =…

Q: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: Monthly payment (P) = $1300 Period = 30 Years Number of monthly paymenst (n) = 30*12 = 360 Interest…

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 wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

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: Suppose you had to choose between a 9% 25-year mortgage or a 8.5% mortgage with 2 discount points.…

A: The discount points in mortgages are the points that can classify into borrower and lender points.…

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 can afford a $450 per month car payment. You've found a 3 year loan at 5% interest. How big of a…

A: Personal finance encompasses financial decisions and strategies that individuals make to manage…

Q: You decide to purchase a house for $260,000. You have saved money so you are able to do a down…

A: A loan/mortgage indicates any sum borrowed to meet specific funding needs. The funding requirements…

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 bought a house with a $378016 mortgage that you will pay off over 26 years.  Given your credit…

A: When buying big ticket items like a house we do not have the financial capability to pay for the…

Q: a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction…

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

Q: ou just borrowed $490,000 for a mortgage on your new home. The mortgage has a 30​-year term with…

A: Mortgage loans make home buying home easy because paid by easy monthly payments that carry payment…

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: A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5%…

A: Fixed monthly payment =P× r ×(1+r)n(1+r)n-1 Where : P = Loan amount r = monthly rate of interest n =…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 5.5% interest. a)…

A: Monthly payment (C) = $1400 Monthly interest rate (r) = 0.00458333333333333 (i.e. 0.055 / 12)…

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: Suppose your gross monthly income is $5,200 and your current monthly payments are $425. If the bank…

A:

Q: your bank in which you will pay 3 points on a $300,000 mortgage.  What is the dollar amount you will…

A: In mortgage there are points to be paid which reduce the yield on the loans.

Q: TOTAL INTEREST PAID. You are considering purchasing a home that requires $450,000 mortgage at 5.25%.…

A: Solution:- When an amount is borrowed, it can either be repaid as lump sum payment or in…

Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

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: 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: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…

A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…

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.