You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan forthe rest.a) How much is the loan amount going to be?%24b) What will your monthly payments be if the interest rate is 6%?%24c) What will your monthly payments be if the interest rate is 7%?%24

Amount of home = $255,000 Down payment = 5% The time duration of the loan = 30 years

You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 6%? %24 c) What will your monthly payments be if the interest rate is 7%?

You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 6%? %24 c) What will your monthly payments be if the interest rate is 7%?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

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: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: PMT function gives the payment for the loan for the constant payment and the constant rate of…

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: Suppose you borrow 11,000 for 5 years at 6% towards the purchase of a car. What would be the monthly…

A: The computation of monthly payments:Hence, the monthly payment is 212.66.

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 5.44% interest. Suppose…

A: Note: No intermediate rounding is done for successive parts as well. Value of house = $525,000…

Q: You want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan…

A: Closing cost is the cost which has to be paid by either seller or the buyer to the government when…

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: 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: We want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: Amount of loan=$40000Rate of interest=8%

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 want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year…

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

Q: You are buying a home that cost $110,000 and are putting 20% down to avoid PMI. What would their…

A: Cost of house is $110,000 , down payment is 20% of cost = $22000. Therefore, loan amount is $88,000.…

Q: You need a home loan of $95,000 after your down payment. How much will your monthly house payment be…

A: Loan amount (PV) = $95000 Interest rate = 6.25% Monthly interest rate (r) = 6.25%/12 =…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 5.54% interest. Suppose…

A: Given: Particulars Amount Cost of home $525,000 Year 30 Interest rate 5.54% Down payment…

Q: You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash that you…

A: The value for mortgage would be considered as the agreement between the bank and individual party…

Q: . You are purchasing a house for $310,000. You plan to take out a 25-year loan to pay for the…

A: a. The monthly payments will be $1812. Note: The calculation has been made on excel.

Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…

A: Loans are a way through which individual finance their big expenditures. These types of loans help…

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 want to buy a $148,000 home. You found a bank that offers a 30-year loan at 3.5%…

A: Loan Amount = $148,000 Time Period = 30 years Interest Rate = 3.5% The calculation of the monthly…

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 want to buy a $153,000 home. You found a bank that offers a 30-year loan at 4.5% APR.…

A: Price of Home (PV) is $153,000 APR (r) is 4.5% Time Period (n) is 30 years and 25 years Compounding…

Q: ou want to buy a $219,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: a) Hence, the loan amount is $186150.00.

Q: You want to buy a $251,000 home. You plan to pay 5% as a down payment and take out a 30-year loan…

A: A mortgage refers to a loan against the purchase of a house. Mortgage repayment requires the…

Q: You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing…

A: Excel formula.

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.54% interest. Suppose…

A: a) Value of home = $475,000 Down payment = 30% = 30%*$475000 = $142500 Loan amount = $332,500 Number…

Q: You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: A loan is a facility provided by a lender to the borrower under which the borrower can take a lump…

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: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose…

A: given, price = $525000 n = 30 years r = 4.64% m = 12 down payment =30%

Q: Suppose you want to buy a $141,000 home. You found a bank that offers a 30-year loan at 3.7% APR.…

A: Given Information:Amount is $141,000 Number of years is 30 APR is 3.7%

Q: You are thinking about buying a rental property. Because of the difficulty getting a loan, you are…

A: Given data; Initial payment = $350,000 number of years = 10 monthly received cash = $1400 selling…

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Down payment It is the payment generally made in cash, in the early stages of the purchase of both…

Q: You buy a $36,000 car. You put $1,000 down and finance the rest with a 3.6% interest loan with…

A: Amortized loan: It is a type of loan where the borrower would make an equal periodic payment towards…

Q: You plan to purchase a $500,000 home with a 20% down payment. You can take out a 30-year FRM of…

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

Q: You were buying a House for $190,000 with a down payment of $57,000. The loan will be paid back over…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The monthly payment will depend upon the interest rates, the time period and the amount of loan.

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: Suppose you want to buy a $141,000 home. You found a bank that offers a 30-year loan at 3.7% APR.…

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

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 car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…

Q: Suppose you want to buy a $147,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…

Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…

A: Given, Rate per period = 0.06 Total number of payments (nper) = 30 Present value (pv) = 300,000…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose…

A: Price of Home = $525000 Inetest Rate(r) = 4.84%/12 = 0.4033% Downpayment = 30% Amount financed…

Q: You want to buy a $227,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Total cost of the home is $227,000. 5% of the amount will be paid as down payment. The monthly…

Q: You want to buy a $249,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: For a 30 year loan: Loan amount = present value of all payment PV is given by PV = E(1-(1+r)-p)/r…

Q: Mark and Natalie want to buy a house selling for $120,000. They will put $20,000 down as a down…

A: Part (a): Calculation of monthly payment: Answer: Monthly payment is $561.53

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.34% interest. Suppose…

A: Monthly payment: Monthly payment $1,854.655875 Answer: $1,854.66

Q: You are borrowing $500,000 to buy a house. The interest rate is 3% compounded monthly. The…

A: Given:

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…

Question

You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for
the rest.
a) How much is the loan amount going to be?
%24
b) What will your monthly payments be if the interest rate is 6%?
%24
c) What will your monthly payments be if the interest rate is 7%?
%24

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ 181800 b) What will your monthly payments be if the interest rate is 6%? 1089.98 C) What will your monthly payments be if the interest rate is 7%? Submit Question
You want to buy a $198,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest.a) How much is the loan amount going to be?$b) What will your monthly payments be if the interest rate is 6%?$c) What will your monthly payments be if the interest rate is 7%?
You want to buy a $151,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.25% interest for the rest. a) How much is the loan amount going to be? LA $ b) What will your monthly payments be? LA c) How much of the first payment is interest? LA
(please finanas question correct answer) You want to buy a $243.000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. How much im the loan amount going to be? What will your monthly payments be if the interest rate is 5%? What will be your monthly payments if the interest rate is 6%?
You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan at 6.55% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?
Do you want to buy $187,000 home. You plan to pay 20% as a down payment and then take out a 30 year mortgage for the rest. a) how much will the loan amount be? b) what will your monthly payments be if the interest rate is 6% ? c) what will your monthly payments be if the interest rate is 7%?
You want to buy a $400,000.00 home. You plan to pay 10% as a down payment, and take out a 25-year loan for the rest. A. How much is the loan amount going to be? My loan amount will be $________ . B. What will your monthly payments be if the interest rate is 2%? If my interest rate is 2% then my monthly payment will be $_______ . C. What will your monthly payments be if the interest rate is 6%? If my interest rate is 6% then my monthly payment will be $_________.
C. ich total money will you pull out of the account? account at the beginning How much of that money is interest? 19. You can afford a $700 per month mortgage payment. You've found a 30 year loan at 5% interest. a. How big of a loan can you afford? b. How much total money will you pay the loan company? How much of that money is interest? C. down payn
You want to buy a $191,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at 7% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? S e) How much money in interest will you save if you finance for 15 years instead of 30 years? $