Question

In: Finance

You’d like to buy a house. You can borrow $600,000 but you can only afford to...

  1. You’d like to buy a house. You can borrow $600,000 but you can only afford to make monthly payments of $2,750. The lender agrees to allow you to make this payment on a 30 year mortgage, but then you must make a balloon payment to cover any shortfall. What is the dollar amount you’ll still owe if your mortgage rate is 4.349%
    $174,763
    $217,206
    $189,305
    $154,611
  2. You have $12,000 in credit card debt and have finally decided to start to really pay it off. You determine that you’ll be able to make the following monthly payments. The APR on your credit card is 22%. Your first payment is today. How much will you owe after your last payment?

  3. Month

    Payment

    1

    2000

    2

    2000

    3

    1500

    4

    1500

    5

    1500

    6

    1000

    7

    1000

    8

    500

    9

    500

    10

    500

$842.19

$1044.68

$0.00

$785.60

Solutions

Expert Solution

1)

2)

Formulae

jeff jeffy answered 3 years ago
Next > < Previous

Related Solutions

You’d like to buy a house. You can borrow $600,000 but you can only afford to...
You’d like to buy a house. You can borrow $600,000 but you can only afford to make monthly payments of $2,750. The lender agrees to allow you to make this payment on a 30 year mortgage, but then you must make a balloon payment to cover any shortfall. What is the dollar amount you’ll still owe if your mortgage rate is 4.349% $154,611 $174,763 $189,305 $217,206
A young engineer wishes to buy a house but only can afford monthly payments of $500....
A young engineer wishes to buy a house but only can afford monthly payments of $500. Thirty-year loans are available at 12% interest compounded monthly. If she can make a $5,000 down payment, what is the price of the most expensive house that she can afford to purchase? Solve using annuities
An engineer wishes to buy a house but can only afford monthly payments of $1500. 30-...
An engineer wishes to buy a house but can only afford monthly payments of $1500. 30- year loans are available at 5.75% interest compounded monthly. If the engineer can make a $20,000 down payment, what is the price of the most expensive house that the engineer can afford to purchase?
Katekani is looking to buy a house and can afford a payment of R14 000.00 a month.
Katekani is looking to buy a house and can afford a payment of R14 000.00 a month. If the house costs R1 500 000 and Jane can get a 20 year loan at 10.25% p.a. compounded monthly, how much must Jane give as a deposit to lower her payment to R14 000.00 a month?
You want to buy a new car. You can only afford $600/month. (Don’t forget to use...
You want to buy a new car. You can only afford $600/month. (Don’t forget to use autofill features) How much can you pay for the car? Highlight this answer in your favorite color. Be sure to make three worksheets in one excel file. a. Prepare a loan amortization table for a 5% 5-year loan. b. If you were able to get a 3% loan, how much more could you spend on a car. (Use spinners) Lock the 3% cell in...
You’d like to buy a small ranch when you retire in 40 years. You estimate that...
You’d like to buy a small ranch when you retire in 40 years. You estimate that in 40 years you’ll need $7 million to do so. If your savings can earn 1.1% per month, how much will you need to save each month (for 40 years), starting next month, in order to reach your goal? Round to the nearest cent. ​[Hint: Note that the question gives us the monthly interest rate. This is the periodic rate, which is i/m in...
You plan to borrow $500,000 to buy a house. The amortization period of the mortgage is...
You plan to borrow $500,000 to buy a house. The amortization period of the mortgage is 20 years. You obtain a 5-year fixed rate mortgage from TD bank at 2%/year (using Canadian mortgage convention). (a) How much do you owe the bank after the 60th payment? (b) For the 24th monthly payment, how much of it is for interest, and how much of it is for principal repayment? d) What is the present value of the interest portion of the...
You plan to borrow $500,000 to buy a house. The amortization period of the mortgage is...
You plan to borrow $500,000 to buy a house. The amortization period of the mortgage is 20 years. You obtain a 5-year fixed rate mortgage from TD bank at 2%/year (using Canadian mortgage convention). (a) What is your monthly payment? (b) How much do you owe the bank after the 60th payment? (c) For the 24th monthly payment, how much of it is for interest, and how much of it is for principal repayment? (d) What is the present value...
You want to buy a house and will need to borrow $245,000. The interest rate on...
You want to buy a house and will need to borrow $245,000. The interest rate on your loan is 5.77 percent compounded monthly and the loan is for 30 years. What are your monthly mortgage payments?
You can afford payments of $700 per month for the purchase of a house.
You can afford payments of $700 per month for the purchase of a house.a) What is the largest amount you can finance for this house at 3.2% APR for 30 years? (Round to the nearest dollar.) b) How much total will you pay the finance company at the end of the 30 years for this house if you are paying $700 per month for thirty years? c) Now you are curious what the payments would be if you financed the same amount...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT