None You have $15,000 to put down on anew house that cost $200,000, andyou have been quoted the followingfinance terms by your local banker:6% Annual Percentage Rate, for 30years. If you decide to purchase thishome, what will your monthlypayment be? Additionally, over thelife of the loan what would your totalinterest expense be?

In this scenario, you are purchasing a home for $200,000 with a $15,000 down payment, leaving a loan…

Answered: You have $15,000 to put down on a new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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You are buying a house and have saved a down payment of $15,000. You can afford a monthly payment of $1200, and the house can be financed at 2.5% for 30 years. Compute the maximum loan amount (MLA), rounding to the nearest cent: What is the maximum purchase price (MPP), rounded to the nearest cent?
You lend a friend $10,000, which your friend will repay in 5 equal annual end-of-year payments of $3,000, with the first payment to be received 1 year from now. What rate of return does your loan receive? I need to be able to use excel and manually calculate as well.
You'd like to purchase a house. You're monthly take home pay is $4560. You'd like to use one fourth of your take home pay for a house payment. You have $18500 for a down payment. You can get an APR of 4.35% compounded monthly. What is the total cost of a house you can afford with a 15 year mortgage?
Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and you will be required to make monthly payments of $3,700 what is the price you paid for your home?
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You want to purchase a house valued at $200,000. After a downpayment, you can finance the house with a 20 year mortgage at 4.2% APR, compounded monthly. What percentage of the house will you need to finance in order to have monthly payments of $1,000? Round to two decimal places. What is the downpayment?
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You need a 30-year, fixed-rate mortgage to buy a new home for $400,000. Your mortgage bank will lend you the money at a 6 percent APR for a 360 month loan. You can only afford a monthly payment of $1000. How much downpayment should you put at the time of purchase? Please show your work using excel formulas.
You need a loan of $175,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 30-year fixed rate at 7% with closing costs of $1400 and no points. Choice 2: 30-year fixed rate at 6.5% with closing costs of $1400 and 2 points. What is the monthly payment for choice 1? What is the monthy Payment for choice 2? What is the closing paymennt for choice 1? What is the closing paymennt for choice 2?
Suppose that you decide to borrow 16000 for a new car. You can select one of the following loans each requiring regular monthly payments. Installment loan A three-year loan at 6.3% Installment loan B five -year loan at 6.4% What would be the monthly payments for each loan and total interest for them also? How much will the buyer save in interest?
You plan to purchase a $500,000 home with a 20% down payment. You can take out a 30-year FRM of $400,000 at an APR of 7.2%. (1) What is your monthly payment? (2) If you make regular monthly payments, how long will it take to pay off half of the loan? (i.e., reduce the principle of the loan balance to half) (3) After making regular monthly payments for 10 years, how much will be the loan balance? Assume you obtain two quotes with and without (discount) points: either 7.2% APR without point or 6% with 2.5 points.

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