You are looking at buying a home with an asking price of $225,000. Since the market...
You are looking at buying a home with an asking price of $225,000. Since the market is hot, you plan to put in an offer for full asking price. You also plan to put a $45,000 down payment and finance the remainder. Your bank is offering you a 30-year loan at 4.125% APR (compounded monthly). Assume your first payment is made one month from today.
a. What would be your monthly loan payment?
b. Assuming you paid all of your payments on time, what would be the total amount paid to your financial institution?
c. Assuming you made all of your payments on time, what would be the total interest paid to your financial institution?
d. If you paid the bank $1,350 each month rather than making the required payment, how many months would it take to pay off the loan?
Homework Answers
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You are looking at buying a home with an asking price of
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1. İYou and your spouse have found your dream home. The selling price is $220,000; you...
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17 A bank is offering you a loan of $10,000 for 20 years. The stated interest rate (APR) is 7%. If this is an amortized loan with monthly payment, how much is your fixed payment? Put in your answer with two decimal numbers after rounding. No dollar sign($). of Answer: 18 Suppose you are buying your first condo for $155,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment,...
You would like to save annually for buying a car 6 years from today. Suppose the...
You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5 years from now. Assume the car will cost you $30,000 and your deposits earn you interest at 6% p.a. compounded annually. a. What is your annual deposit amount? b. Instead of making annual deposits, you would like to make your deposit monthly and the bank is happy to pay your interest...
You will compare 2 different amortization schedules when buying a car. The purchase price is $17,500....
You will compare 2 different amortization schedules
when buying a car. The purchase price is $17,500.
Bank A requires a 20% down payment and has an annual interest rate
of 3.6%. Bank B wants only 10%
down payment but the annual interest rate is 4.8%. In both banks,
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monthly payment. Use the PMT function under
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Problem 2-Buying a Car You see a car that you absolutely must have. The price tag says $18,450, but you want to keep your payment low over a 4-year period. Since you want to make payments no larger than $250 at the end of every month, you must find a bank to finance a loan for you. The bank you find charges interest at a rate of 6.99% compounded monthly. Use this information to find the following: The amount you...
You are interested in buying a house that costs $300,000. You plan to make a 20% down payment and borrow 80% of the purchase price. You will issue a mortgage loan (yes, the borrower is the issuer of the mortgage loan) to the bank who is lending you the money. The term of the mortgage loan is 15 years. The interest rate is fixed at 5% per year. Let's assume yearly rather than monthly payments for this problem set. Keep...
A bank is offering you a loan of $10,000 for 20 years. The stated interest rate (APR) is 7%. If this is an amortized loan with monthly payment, how much is your fixed payment? Put in your answer with two decimal numbers after rounding. No dollar sign($). Answer: Suppose you are buying your first condo for $155,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30- year, monthly payment, amortized mortgage...
17 A bank is offering you a loan of $10,000 for 20 years. The stated interest rate (APR) is 7%. If this is an amortized loan with monthly payment, how much is your fixed payment? Put in your answer with two decimal numbers after rounding. No dollar sign($). of Answer: 18 Suppose you are buying your first condo for $155,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment,...
You will compare 2 different amortization schedules
when buying a car. The purchase price is $17,500.
Bank A requires a 20% down payment and has an annual interest rate
of 3.6%. Bank B wants only 10%
down payment but the annual interest rate is 4.8%. In both banks,
the loan will be paid off in 3 years.
Formulas: A.First you need to set up the formula to find the
monthly payment. Use the PMT function under
FINANCIAL FORMULAS.
B. After...
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