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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- Monthly loan payments are computed using a formula. Payment information is often arranged in tables to make it easy for customers. Clonthiy Payment per $1,000 of Loan Interest Rate (APR) 2-Year Loan 3-Year Loan 4-Year Loan 5-Year Loan 1% $42.10 $28.21 $21.26 $17.09 2% $42.54 $28.64 $21.70 $17.53 3% $42.98 $29.08 $22.13 $17.97 4% $43.42 $29.52 $22.58 $18.42 5% $43.87 $29.97 $23.03 $18.87 6% $44.32 $30.42 $23.49 $19.33 7% $44.77 $30.88 $23.95 $19.80 EXAMPLE 1 Whu is the monthlu navment for a $4.000 2-vear loan with an APR of 4%?Manuel has a $300,000 loan to be paid back with 5.329% interest over 30 years. What are Manuel's monthly payments? 1647.9 X How much in total does Manuel pay to the bank? 593244 X How much interest does Manuel pay? 293244 X Comparing Michele and Manuel's interest, how much more does Manuel pay over the lifetime of the loan? 3408 XMichael has a credit card debt of $70,000 that has a14% APR, compounded monthly. The minimum monthly payment only requires him to pay the interest on his debt. He receives an offer for a credit card with an APR of 6% compounded monthly. If he rolls over his debt onto this card and makes the same monthly payment as before, how long will it take him to pay off his credit card debt?
- If Greg borrows $140.00 from the bank at 6.5% exact simple interest, how much interest does Greg owe if he pays back the money after 250 days?Aman has two debts to pay. A $850 due today and a $950 due in 9 months from today. Instead, he wants to settle the debt with one single payment of $1900. When should he make that payment? Money earns 4% p.a.Mr. Jones borrows P2,000 for 90 days and pays P35 interest. What is his effective rate of interest?
- The problem describes a debt to be amortized. A man buys a house for $390,000. He makes a $150,000 down payment and amortizes the rest of the debt with semiannual payments over the next 9 years. The interest rate on the debt is 10%, compounded semiannually. (Round your answers to the nearest cent.) (a) Find the size of each payment.$ (b) Find the total amount paid over the life of the loan (including the down payment).$ (c) Find the total interest paid over the life of the loan.Lauren deposited $10,000 today. He plans to withdraw $1100 every year. For how long can she withdraw from the account starting 1 year from now if interest is 89% compounded annually? State your answor in years and months (trom 0 to 11 months) This is an example of OA Compound Interest Problem (PMT-0) OB. Payout Annuity Problem (FV0) OC. Savings Annuity Problem (PV= 0) The TVM variable being solved is OA PMY OB. n Use your TVM solver to answer the following questions (a) It will take years to depelete the account Round UP to the nearest whole period (b) She can make withdrawals for year(s) and month(s) Answers should be whole numbers with months is between 0 and 11 CHES O.C. FV OD. PVNoor is buying a home with a $200,000 mortgage using a 5.5 percent, 30-year loan. How much of the first month's payment will go toward the principal if the payment per $1000 on this loan is $5.6779? O a. $917 O b. $219 O c. $0 O d. $538
- Mr. Nina borrows $425,000 from the bank at 3.5% per year interest over a 30-year period. He can make a monthly month-end payment of $1,400 and would like to make a balloon payment at the end of the 30-year period. What would be the size of the balloon payment? $218,058 $323,069 $433,197 $548,512 Please show how to work this out in Excel if possible?H4. Fred and Ethel are going to take out a business loan on which they will make annual payments of $7,500 for six years. At that point in time they will also pay off the remaining balance which will be $37,155. Their interest rate is 7.6% compounded semiannually. What is the amount that Fred and Ethel borrowed? Please show proper step by step calculationCharles has just taken out a loan at an annual rate of 12%. Based on the conditions of the loan, he must make payments of $1,200 per year for 15 years in order to repay the full amount of the loan. How much money did Charles borrow? O $8.173.04 O $44,735.66 O $18,000.00 O $6,504.74