You can afford a $950 per month mortgage payment. You've found a 30 year loan at...

You can afford a $950 per month mortgage payment. You've found a 30 year loan at 6% interest. a) How big of a loan can you afford? $ b) How much total money will you pay the loan company? $ c) How much of that money is interest? $

Expert Solution

a)
	Present Value Of An Annuity
	= C*[1-(1+i)^-n]/i]

	Where,
	C= Cash Flow per period
	i = interest rate per period =6%/12 =0.5%
	n=number of period =300*12 =360

	= $950[ 1-(1+0.005)^-360 /0.005]

	= $950[ 1-(1.005)^-360 /0.005]

	= $950[ (0.834) ] /0.005

	= $1,58,452.03

	Loan can be afford = $158452.03


b)	Money will pay = $9503012

	=$342000

C)	Interest amunt = $342000-158452.03
	=$342000-158452.03
	=$183547.97

jeff jeffy answered 2 years ago

You can afford a $850 per month mortgage payment. You've found a 30 year loan at...

You can afford a $850 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? $ b) How much total money will you pay the loan company? $ c) How much of that money is interest? $

You can afford a $1250 per month mortgage payment. You've found a 30 year loan at...

You can afford a $1250 per month mortgage payment. You've found a 30 year loan at 6% interest. a) How big of a loan can you afford? $ b) How much total money will you pay the loan company? $ c) How much of that money is interest?

you can afford a 1200 per month mortgage payment you found a 30 year loan at...

you can afford a 1200 per month mortgage payment you found a 30 year loan at 6% interest a) how big of a loan can you afford? b) how much total money will be paid to the loan company? c) how much of that money is interest?

You can afford a $450 per month car payment. You've found a 3 year loan at...

You can afford a $450 per month car payment. You've found a 3 year loan at 2% interest. How big of a loan can you afford?

you can afford a 1400$ per month mortage payment. youve found a 30 year loan at...

you can afford a 1400$ per month mortage payment. youve found a 30 year loan at a 6% interest. you can afford a 1400 per month mortage payment. you found a 30 year loan at 6% interest. a) how big of a loan can you afford? b) how much total money will you pay the loan company? c) how much of that money is interest?

you can afford a 1350$ per month mortage payment. youve found a 30 year loan at...

you can afford a 1350$ per month mortage payment. youve found a 30 year loan at 7% interest. a)!how big of a loan can you afford b) how much total money will you pay the loan company c)how much of that money is interest?

Jacob can only afford a payment of $500 per month for the new boat he plans...

Jacob can only afford a payment of $500 per month for the new boat he plans to purchase for himself. He qualifies for a 5-year loan with 1.75% APR. What is the maximum purchase price he can afford?

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...

You took a 30-year half-million-dollar mortgage at 3% per year. Midway (i.e., after you've paid the...

You took a 30-year half-million-dollar mortgage at 3% per year. Midway (i.e., after you've paid the 180th monthly payment), how much equity have your accrued?

You want to get a mortgage, but can only afford to pay $1200 per quarter.

You want to get a mortgage, but can only afford to pay $1200 per quarter. How much can you borrow, if the interest rate is 5% annually for a 30 year mortgage?

Question