Calculate the equivalent effective monthly rate. Give your answer as a percentage to 4 decimal pl

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: The Taylors have purchased a $150,000 house. They made an initial down payment of $30,000 and…

A: House price = $150,000 Down Payment = $30,000 Time Period = 30 Years Interest Rate = 9%

Q: You have decided to buy a 3,250 square-feet house in Denton, close to a good public school. The…

A: Monthly payments for loan amount is calculated in excel formula =PMT. Monthly payment for 3rd year…

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: Georgia applied for a home mortgage of 75,000 to finance the purchase of a new home for 30 years.…

A: Loan amount (PV) = 75,000 Annual interest rate (r) = 14% Number of annual payment (n) = 30

Q: If you have only $750 on January 1, 2019, what interest rate, compounded annually for 3 years, must…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: Assume that you will have a 10-year, $14,000 loan to repay when you graduate from college next…

A: Given, Loan amount = $14,000 Annual payment = $2,377 Interest expense = 11%

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: 1)  Loan Amount = 80% of 415,000 = $332,000.

Q: Today is 1 July 2021. You are looking to purchase an investment property today (after months of…

A: EMI means equally monthly installments It is pre-determined equal monthly payment towards the loan…

Q: Today is July 14, 2021 and an investor enters into a FRA in which she will pay 8% per year for a…

A: Interest=$1,000,000×e8%×312-1             =$1,000,000×1.02020134002676-1…

Q: Olivia plans to secure a 5-year balloon mortgage of $270,000 toward the purchase of a condominium.…

A: A fixed rate mortgage is a type of mortgage in which interest rate does not vary and remains…

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to…

A: Loan Amortization: It is the process of paying the loan sum by making loan payments made by the…

Q: grandmother’s estate in a few months’ time. He is eyeing to buy a 1-bedder condominium so that he…

A: In this problem we have to calculate monthly interest rate and present value FACTOR and from that we…

Q: Olivia plans to secure a 5-year balloon mortgage of $210,000 toward the purchase of a condominium.…

A: Olivia secures a balloon payment mortgage for a condominium of $210,000. The loan was amortized for…

Q: A buyer is considering purchasing a 10-acre parcel in Peoria, Arizona for economic development. The…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: B) Ms. R. agrees with the bank to repay the debt plus interest with annuities in the amount of…

A: A loan is obtained by a borrower which is repaid in regular payments over the period of time. The…

Q: If your bank approves a $300,000 mortgage for your new home, at an annual percentage rate of 4.5%…

A: Loan amount = $ 300,000 Interest rate = 4.5% Monthly interest rate = 4.5%/12 = 0.375% Monthly…

Q: You have just purchased a home and taken out a $500,000 mortgage. The mortgage has a 30-year term…

A: Calculation of Total Interest Paid and Total Principal Paid:The total interest paid is $29,832.97…

Q: Today is 1 July 2021. You are looking to purchase an investment property today (after months of…

A: Note: This question contains two parts. The first has been solved below. There is a reference to L12…

Q: Mrs. R. would like to buy a mobile home. To this end, she takes out a loan of 80,000 euros on…

A: Mortgage refers to the borrowed amount of funds that is taken from financial institutions, such as…

Q: The Clarke family is buying a home and will select a mortgage with a 25-year amortization period, at…

A: Gross monthly income = $8,400 Property taxes =$500 per month Heating costs = $375 per month GDS =…

Q: Julia graduated in 2020. She was recruited by an investment banker in Trinidad and they offered her…

A: Interest Rate is 10% compounded monthly Time period is 2 years. 1st Option $480,000 per year for the…

Q: A borrower has secured a 30 year, $730,000 loan at 5%. 15 years later, the borrower has the…

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

Q: Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: a few months' time. He is eyeing to buy a 1-bedder condominium so that he can stay on his wn. The…

A: In this we have to calculate the monthly interest rate and present value FACTOR and calculate the…

Q: The Taylors have purchased a $200,000 house. They made an initial down payment of $10,000 and…

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

Q: If you borrow $500,000 to buy a house today, what is the amount of your monthly mortgage payment…

A: Journal entry: It is the duty of the accountant to record business economic and non-economic…

Q: A buyer is considering purchasing a 35-acre parcel in Apache Junction, Arizona for economic…

A: Solution: As per the terms and conditions of the loan, the loan can be repaid in equal periodic…

Q: Olivia plans to secure a 5-year balloon mortgage of $240,000 toward the purchase of a condominium.…

A: The mortgage is the payment which is considered as a periodic payment for the purpose of loan. The…

Q: borrow $400,000 from Bank of America on a 30-year mortgage at 6% interest rate. a. What would Tim's…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: For the calculation I have used the above given formula and got the monthly payment to be…

Q: and you cannot cancel on the due date, so you must cancel with a delay of 25 days, it is requested:…

A: Interest is the fee paid to a lender for using the funds. It is the compensation paid to an investor…

Q: The Taylors have purchased a $150,000 house. They made an initial down payment of $20,000 and…

A: Monthly payment for  the loan can be calculated using the formula of present value of annuity

Q: day is 1 July 2021. You are looking to purchase an investment property today (after months of search…

A: In this we have to determine monthly interest rate and get monthly payment.

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

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

Q: You are in the market for a home. You and your partner have saved up $305,000 for a down payment und…

A: Here the APR is 3.14% compounded semi-annually. Let i be the monthly rate.  We know that: (1+i)^12…

Q: Assume that you will have a 10-year, $20,000 loan to repay when you graduate from college next…

A: Note: As per the Policy, We’ll answer the first question since the exact one wasn’t specified.…

Q: You want to purchase a home for $747,555 in South Calga at BMO has informed you that the rate on…

A: Mortgage payment are made monthly payment that carry payment of principal amount and interest…

Q: You are working for a finance firm and a client comes to you and wants to know how much money they…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: The Taylors have purchased a $160,000 house. They made an initial down payment of $30,000 and…

A: Given information: House purchased for $160,000 Down payment of $30,000 Interest rate is 11%  Number…

Q: now january 1, 2018, and you will need $1,000 on january 1, 2022, in 4 years. if you have only $750…

A: Future value of money is the initial investment and interest accumulated over the period of time…

Q: İhsan wants to pay the 50,000 TL loan he received from the bank in annual installments of 2,500 TL…

A: The loan refers to the fund provided by the lender to the borrower at a certain interest rate for a…

Q: if your bank approves a $300,000 mortagage for your new home, at an annual percentage rate of 4.5 %…

A: Loan amount = $ 300,000 APR = 4.5% Monthly interest rate = 4.5%/12 = 0.375% Monthly payment = $ 1800

Q: Starting next year, you will need $5,000 annually for 4years to complete your education. (One year…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A chiropractic student receives a 10-year PLUS Loan for $50,000 to complete the last 2 years of the…

A: Loan (L) = $50000 n = 10 years = 120 months r = 5.48% per annum = 0.45667% per month Let the monthly…

Q: On January 1 2021, you will purchase a $350,000 house. To pay for the house you will pay 20% down…

A: Mortgage securitization is the process of clubbing mortgages of individuals having same features to…

Q: Assuming that you graduated on December 31st 2020 from the University of Buraimi and immediately on…

A: given, amount you save in Muscat bank (p) = $300 every month years (t) = 20 rate (r) = 10%

Q: You have just taken out a mortgage of $50,000 for 30 years, with monthly payments at 6% interest.…

A: Time value tells that money received today has more value than that of receiving the exact value…

Q: You get a 20-year $600,000 mortgage loan at 7.5% interest. Use your financial calculator to…

A: We need to use financial calculator as instructed in above question for monthly payment and…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.