You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan's EFF%

Q: You want to buy a house valued at $200,000.  AFter a down payment, you can finance the house with a…

A: The annual percentage rate is the rate earned on the investment or paid on loan over the period of…

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…

Q: You've just bought a new​ flat-screen TV for ​$2,800 and the store you bought it from offers to let…

A: Price of TV (PV) = $ 2,800 Annual interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25%…

Q: You want to buy a $199,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Formula; Loan amount = Home value * (1 - Down payment)   Loan amount = $199,000 * (1 - 0.10) Loan…

Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: You want to buy a new sports coupe for $74400 and the finance office at the dealership has quoted…

A: given, p=$74400 r=6.8% m=12 n=4 years (4812)

Q: You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: You want to buy a $206,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Down payment in a loan is the proportion of the total amount of loan that the borrower pays from his…

Q: How much the monthly payment on a $114,000 home be if you get 4.1% interest over a 15 year loan with…

A: Here, Loan Amount is $114,000 Interest Rate is 4.1% Time Period of Loan is 15 years Compounding…

Q: Suppose you buy a $40,000 car and you 'put down' $5,000 and finance the rest for 72 months at 3.75%…

A: Solution:- When a loan is taken, the amount can be repaid as a lump sum payment or in instalments.…

Q: the amount of the down payment?

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

Q: You can borrow 5,000 pesos from a friend or from a bank. Your bank will charge you 20% each year,…

A: Here, Borrowed Amount is 5,ooo pesos Interest Rate charged by Bank is 20% Interest Rate charged by…

Q: You want to buy a $195,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The loan amount would be price of home less down payment. Monthly payment =Loan amountPVAIF (…

Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…

A: Given information: Amount of loan : $135,000 Interest rate : 3.6% Time period : 15 years Balloon…

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: If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year…

A: Given values: Present value (PV) is $25,000. Annual payments (PMT) are $4,424.50. Maturity period…

Q: You want to buy a $330000 home. You plan to pay $33000 as a down payment, and take out a 20 year…

A: given, price =  $330000 downpayment = $33000 principal = $330000 - $33000 = $297,000 n=20 m=12…

Q: Suppose you wanted to buy a $200,000 house. You have $30,000 cash to use as the downpayment. The…

A: Given PV = amount of loan = 200000-30000 = $ 170000 r = rate of interest = 6/12 = 0.05 n = number of…

Q: You want to buy a $198,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: For determination of equal monthly payment(PMT), we need to use loan amortisation formula below. PMT…

Q: Suppose you purchase a car for a total price of $22,565 including taxes and license fee, and finance…

A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…

Q: You want to buy a $258,000 home. You plan to pay 20% as a down payment, and take out a 4% APR loan…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: Loan amount is the amount borrowed from the financial institutions such as banks, corporate houses,…

Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a…

A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: You want to buy a car with a local bank that will lend you $20000. The loan will fully amortized…

A: The amortized loan is a loan that repays with regular installments. The monthly payments of a loan…

Q: You want to buy a $15,000.00 car. You can make a 10% down payment, and will finance the balance with…

A: The Equal Montly installment is calculated with the help of following formula  EMI = P × r(1 + r)n…

Q: You want to buy a $237,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Home loan is a long term loan can last for 30 years. Here the borrower takes the loan to buy a house…

Q: Suppose you purchase a car for a total price of $21,750, including taxes and license fee, and…

A: Part A and B:Calculation of Monthly Payment and Total Interest Paid:The monthly payment is $317.74…

Q: If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: You borrow $100,000 from a bank for 30 years at an APR of 10.5%. What is the monthly payment? If you…

A: "Hi, Thanks for the Question. Since you asked multiple questions, we will answer the first question…

Q: You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with…

A: The Equal Montly installment is calculated with the help of following formula  EMI = P × r(1 + r)n…

Q: You have just made an offer on a new home and are seeking a mortgage. You need to borrow $600,000.…

A: Mortgage: It is termed as a loan used for purchasing properties, homes, and other real estate…

Q: You buy a new truck for your trailer that costs $55,000. What are your monthly payments for a 5 year…

A: Equated monthly installments are equal installments that involve both principal and interest…

Q: You want to buy a $156,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Loan amount = Cost of house - Down payment = $156,000 - (15% * 156,000) =$156,000 - $23,400 =…

Q: You want to buy a $205,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Home value = $205,000 Down payment = 0.10 (10%) Monthly interest rate (r) = 0.00345833333333333…

Q: How much is your monthly payment? use monthly compunding formula

A: Answer:

Q: You want to buy a $120,000 house, and you apply for a mortgage loan. The bank requires a 20% down…

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

Q: Suppose you get a student loan for $8,000, and your payments are deferred until after you graduate,…

A: Present value of Annuity  is the current value of payments made over a specified period of time at a…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: To find the loan amount one has to deduct the down payment from the total loan amount.

Q: You need a home loan of $65,000 after your down payment. How much will your monthly house payment be…

A: FORMULA Monthly payment = LV/[1-(1+R)-N]/R Where LV - Loan amount i.e. $65000 R - Monthly interest…

Q: To purchase a new truck, you borrow $42,000. The bank offers an interest rate of 7.5% compounded…

A: Loan amount  $       42,000.00 Interest Rate 7.50% Time Period(Years) 5

Q: the price of a house is $400,000. Then, you make a down payment of $130,000 and take a 30-year…

A: Price = $ 400,000 Down payment = $ 130,000 Period = 30 Years Number of monthly payments = 30*12 =…

Q: what will be your monthly​ payment?

A: Sum of money borrowed if not paid immediately, then over a period of time as per agreement is…

Q: How much will your monthly payment? My payment will be a month $_______.  B. By the end of the loan…

A: Loan: It refers to the credit taken by the borrower from the lender.  The borrower makes periodic…

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.