20 home, a n annual aid back 1 monthly thly 14. [20pts] The Bob's plan to purchase a home for $25...
Suppose you plan to purchase a $250,000 home. You plan to put 5% down, and take a loan from the bank for the remaining amount. The bank has offered you a 30-year loan with a 4.5% APR (compounded monthly). Calculate the total interest paid to the bank in the 2nd year of the loan
(1 point) Recall that the formula for a simple interest amortized loan, with initial loan value Vo, monthly payments of size m, with interest compounded n times per year for t years at annual interest rate r is rtn.t rt Ben buys his $230,000 home and, after the $40,000 down payment, finances the remainder with a simple interest amortized loan. Ben can pay at most $1,200 per month for the loan, on which the lender has set an annual rate...
Use the following information to answer the next two questions. (1) You plan to purchase your dream home in 10 years. Currently, it would cost you $500,000 to purchase the land and build the house to your specifications, but you believe this cost will grow by 3% per year. You have decided to place equal monthly payments into an investment account that earns 5% annually in order to make a 20% down payment on the home when you purchase it in...
Mortgage Analysis Part I You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. Use the function “PMT” to calculate your mortgage payment. Calculate the total cost of the home purchase. (Down payment plus principal (loan amount) plus interest.) Calculate how much interest you will pay in total? Assume that you plan to pay...
You are ready to purchase a home that has a price of $600,000. You will make a down payment of $100,000 and will finance the remainder with a 20-year loan. The stated rate on the loan is 8% annual with monthly payments. After living in this home for 10 years, you decided to sell the home and find that the sale price of the home will be $450,000. If you sell the home at this price, how much cash can...
You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. Use function “PMT” to calculate your mortgage payment. Use function “PV” to calculate the loan amount given a payment of $1700 per month. What is the most that you can borrow? Use function “RATE” to calculate the interest rate given a payment of $1700...
You want to buy a $230,000 home. You plan to pay 20% 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%? $
10 The Langways purchase a new home for $350,000. The pay 25% down and finance the rest through a 30-year mortgage at an annual interest rate of 3.75%, compounded monthly. How much is the Langways' monthly mortgage payment?
Mortgage Analysis Part I You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. 1. Use function "PMT" to calculate your mortgage payment. 2. Calculate the total cost of the home purchase. (Down payment plus principle (loan amount) plus interest.) 3. Calculate how much interest you will pay in total? 4. Assume that you...
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...