You purchased a house for $100,000 at an 8% APR. Your loan term is 360 months. If you make minimum payments, how many months will it take to have a loan balance of $50,000? Hint: If you want to know how long until your loan balance is $50,000, then in the future your loan value is $50,000. 416 months 269 months 189 months 174 months 280 months
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You purchased a house for $100,000 at an 8% APR. Your loan term is 360 months. If you make minimum payments, how many months will it take to have a loan balance of $50,000?
Hint: If you want to know how long until your loan balance is $50,000, then in the future your loan value is $50,000.
416 months
269 months
189 months
174 months
280 months
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- You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60 months. What is the interest rate (APR) for the loan?1. You are purchasing a home for $150,000 at an 8% APR. Your loan period is 360 months. If your payment is $1,100.65, what is your loan balance after 10 years? $104,658 $131,586 $135,386 $121,543 2. You are purchasing a home for $150,000 at an 8% APR. Your loan period is 360 months. If your payment is $1,100.65, what will your equity be after 10 years? $18,414 $28,627 $14,538 $34,579
- You lend $450 to a friend who promises to make 4 payments to you of $120 at the end of 6 months, 12 months, 18 months and 24 months. Draw a timeline from your perspective. If you can reliably earn 5% per year, what is the net present value (NPV) of this loan?Assume you borrow $200,000 from a bank today to buy a house at 4% interest for 30 years with monthly payments. How much will the monthly payment be? How much interest will you pay over the course of the loan? How much equity do you have in the house after 6 years? What will the loan balance be at the end of year 20? How much interest paid during year 5?You take out a 30-year $150,000 mortgage loan with an APR of 12% and monthly payments. In 11 years, you decide to sell your house and pay off the mortgage. What is the principal balance on the loan? Use Excel
- Suppose 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 take out a home mortgage for $160,000 at a monthly interest rate of 0.6%. If you make payments of $1200/month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer. Graph the sequence of loan balances. Choose the correct graph below. O A. 160,000 its 125 months loan balance 150 Q Q The loan balance will be zero after 269 months. (Round up to the nearest month.) O B. loan balance 160,000 125 150 months Q O loan balance 160,000 260 290 months Q O D. 160,000 it loan balance 260 ¹290 months Ⓒ QSuppose you have a student loan of $50,000 with an APR of 12% for 40 years. Complete parts (a) through (c) below. a. What are your required monthly payments? b. Suppose you would like to pay the loan off in 15 years instead of 30. What monthly payments will you need to make? c. Compare the total amount you'll pay over the loan term if you pay the loan off in 15 years versus 30 years.
- You decide to finance a $10,000.00 car at a 7% interest rate for 4 years. A. How much will your monthly payment? My payment will be a month $_______. B. By the end of the loan what will be the total of all your payments? The total of all my payments will be $________. C. How much interest will you pay over the life of the loan? I will pay $_________ in interest over the life of the loan.Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The maximum amount you are willing to pay is $450 per month. How much can you borrow if the loan lasts for 7 years, your first payment starts today, and the interest rate is 4.5% APR under monthly compounding? $32,495.13 O$29,489.45 O $31,576.98 O $27,456.87you are taking out a $100,000 mortgage loan to be repaid over 25 years in 300 monthly payments. a. if the interest rate is 16% per year, what is the amount of the monthly payment? b. if you can only afford to pay $1000 per month, how large a loan can you take? c. if you can afford to pay $1500 per month and need to borrow $100,000, how many months would it take to pay the mortgage? d. if you can pay $1,500 per month, need to borrow $100,000, and want a 25-year mortgage, what is the highest interest rate you can pay? Please handwrite the formulas and show your work so I can understand how you answer the question thank you!! i will rate back fast