Dr. & Mr. Baker were delighted to find a house for sale that they loved which required them to borrow $ 140,000. They need to decide between a 20-year or 30-year loan. Both loans charge interest at a rate of 9.6% per year compounded monthFind the total amount paid over the life of the 20-year loan. $ (e.) Find the total amount paid over the life of the 30-year loan. $ (f.) Find the total savings by going with the 20-year loan.
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Dr. & Mr. Baker were delighted to find a house for sale that they loved which required them to borrow $ 140,000. They need to decide between a 20-year or 30-year loan. Both loans charge interest at a rate of 9.6% per year compounded monthFind the total amount paid over the life of the 20-year loan. $ (e.) Find the total amount paid over the life of the 30-year loan. $ (f.) Find the total savings by going with the 20-year loan.
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- 2. Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of $120,000. They can amortize the balance at 4% for 30 years. a. Using Excel (FORMULA) , calculate monthly payments. b. Using Excel (FORMULA), calculate equity they have in their house (that is, what is the sum of the down payment and amount paid on the loan) after 20 years? c. Using Excel (FORMULA), populate the following amortization table:Question Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________.…Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period…
- A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan 1: 75% LTV, 30 year FRM, fully amortizing, 4% interest Loan 2: 80% LTV, 30 year with 5 year IO period fully amortizing, 3.25% interest in IO period, 5 percent interest after IO period ends. Loan 3: 90% LTV, 15 year FRM, fully amortizing, 3.5% interest If the borrower held each loan until maturity, how much in interest would she pay on each loan?Find the monthly payment for the loan indicated. yo purchase a home, a family borrowed $97,000 at an annual interest rate of 6.3% for 20 years. $____Dr. & Mr. Baker were delighted to find a house for sale that they loved which required them to borrow S140,000. They need to decide between a 20 year or 30-year loan. Both loans charge interest at a rate of 9.6% per year compounded monthly. Find the savings per month by going with the 30 year loan
- Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. e. The interest rate per period is ___________. f. The present value of laptop is ___________. g. The down payment is _____________. h. The fair market value is ____________.Isiah a sales manager of a big companyl, wants to buy herself a car that she can use at her job and for personal use. She is considering getting a car loan. Loan amount: P1,500,000.00 5 years 10% 10% Installment term: Annual rate: Annual effective interest rate: Required: Complete the amortization table for the loan Isiah is considering. Months Total Payment Principal Interest Outstanding 1,500,000 1 2 4 5 3.Mr. and Mrs. Fuller are buying a new house for $350,000. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment Monthly Payment Total 10% down payment, 5.5% APR for 30 years 15% down payment, 4.5% APR for 25 years
- III. Assume compound interest is used to solve the following problems. 1. Stanley borrowed $4500.00 from his credit union to do some home renovations. The loan has an annual interest rate of 5.75% and an amortization period of 3 years. a. What is Stanley's monthly payment? b. Calculate the total amount he will pay over 3 years. G Calculate the finance charge on the loan. 2. Adele wants to buy a used car that costs $2900.00. She has $1100.00 saved up for a down payment. a. How much will Adele have to borrow to buy the car? b. She can get a loan at 6.50% per annum with an amortization period of 2 years. What will be her monthly payment? c. What will be the total she pays for the loan? d. How much will the car cost? 3. Calculate the monthly payment, the total amount paid, and the finance charge for the following loans: a $2000.00 at 8.00% per annum for 3 years; b. $10 000.00 at 6.25% per annum for 5 years; and c. $1500.00 at 3.75% per annum for 2 years. 4. Harley used her credit card to…You purchase a plot of land worth $56,000 to create a community garden, by securing a 20-year loan charging 8.79% APR, compounded monthly, and requiring monthly payments of $405. Round all answers to the nearest dollar. a. Assuming that you put some money down, what was your original loan amount? Original Loan Amount: $ b. What is the outstanding balance on your loan after making 5 years of рayments? Outstanding Balance After 5 Years: $ c. How much equity do you have in the garden after 5 years? Equity After 5 Years: $A few years ago a couple purchased an office space by financing RA for n years, paying periodic installment of Rp with an interest of r% compounded bimonthly (every 2 months). They have made t payments and wish to know how much they owe on the mortgage at the end of t payments, which they are considering paying off with an inheritance they received. 1. Construct a mathematical model to illustrate the value owed on the loan after t payments. 2. Give an explicit formula for computing the current balance on the loan account after n periods. 3. If the couple signed the contract by financing R80000 for 10 years, paying periodic installments of R1880 with an interest of 18% compounded binmonthly. What is the current value on the mortgage after 6 months?