You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash...

You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will be your annual payment if you sign this mortgage?

Expert Solution

	Annual payment	[P×r×(1+r)^n]÷[(1+r)^n-1]

	Here,

1	Interest rate per annum	7.00%
2	Number of years	30
3	Number of compoundings per per annum	1
1÷3	Interest rate per period ( r)	7.00%
2×3	Number of periods (n)	30
	Loan amount (P)	$ 171,000	=200000-29000

	Annual payment	$ 13,780.28
		(171000×7%×(1+7%)^30)÷((1+7%)^30-1)

jeff jeffy answered 2 years ago

You are thinking of purchasing a house. The house costs 300000.You have 43000 in cash...

You are thinking of purchasing a house. The house costs 300000. You have 43000 in cash that you can use as a down payment on the house but you need to borrow the rest of the purchase price. The bank is offering a 30yr mortgage that requires annual payments and has an interest rate of 5 percent per year. What will be the annual payment?

You are thinking of purchasing a house. The house costs $250,000. You have $36,000 in cash...

You are thinking of purchasing a house. The house costs $250,000. You have $36,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 8% per year. What will be your annual payment if you sign this mortgage?

You are thinking of purchasing a house that costs $245,000. You have $13,000 in cash that...

You are thinking of purchasing a house that costs $245,000. You have $13,000 in cash that you can use as a down payment but you need to borrow the rest of the purchase price. The bank is offering a 30 year mortgage that requires monthly payments and has an annual interest rate of 4.35% per year. What will your monthly payments be if you sign up for this mortgage? Draw the amortization schedule on a monthly basis using Excel. Calculate...

You are thinking of purchasing a house that costs $450,000. You have $55,000 in cash that...

You are thinking of purchasing a house that costs $450,000. You have $55,000 in cash that you can use as a down payment, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires monthly payments and has an annual interest rate of 6.32% per year. What will your monthly payments be if you sign up for this mortgage? Present the amortization schedule (Beginning balance, Monthly payment, Principal payment, Interest payment,...

Part A You are thinking of purchasing a house. The house costs $350,000. You have $50,000...

Part A You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow rest of the purchase price. The bank is offering a 20-year mortgage that requires monthly payments and has an annual interest rate of 5% per year. Determine your monthly payments if you sign up for this mortgage. Draw the amortization schedule, monthly, using Excel. Calculate the...

You are thinking of purchasing a house that costs $230,000. You have $20,000 in cash for a down payment, but you need to borrow the rest of the purchase price.

You are thinking of purchasing a house that costs $230,000. You have $20,000 in cash for a down payment, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires monthly payments and has an annual interest rate of 4.55%. What will your monthly payments be if you sign up for this mortgage? Create the amortization schedule on a monthly basis using Excel. Calculate the total amount of interest paid...

Suppose that you are purchasing a house (loan amount = $200,000) and inquire about the terms...

Suppose that you are purchasing a house (loan amount = $200,000) and inquire about the terms for a 30-year fixed-rate mortgage. LOAN A: annual interest rate of 3.75% with monthly payments and compounding no discount points origination fee of 0.75% $928 in third-party closing costs What is the Effective Borrowing Cost for loan A assuming no prepayment? What is the EBC for the loan if we prepay at the end of the third year?

You would like to buy a house that costs $ 350000. You have $50,000 in cash...

You would like to buy a house that costs $ 350000. You have $50,000 in cash that you can put down on the? house, but you need to borrow the rest of the purchase price. The bank is offering you a? 30-year mortgage that requires annual payments and has an interest rate of 8% per year. You can afford to pay only $25,320 per year. The bank agrees to allow you to pay this amount each? year, yet still borrow...

You would like to buy a house that costs $350,000. You have $50,000 in cash that...

You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000....

You would like to buy a house that costs $350,000. You have $50,000 in cash that...

You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000....

Question

You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash...

Solutions

Expert Solution

Related Solutions

You are thinking of purchasing a house. The house costs 300000.You have 43000 in cash...

You are thinking of purchasing a house. The house costs $250,000. You have $36,000 in cash...

You are thinking of purchasing a house that costs $245,000. You have $13,000 in cash that...

You are thinking of purchasing a house that costs $450,000. You have $55,000 in cash that...

Part A You are thinking of purchasing a house. The house costs $350,000. You have $50,000...

You are thinking of purchasing a house that costs $230,000. You have $20,000 in cash for a down payment, but you need to borrow the rest of the purchase price.

Suppose that you are purchasing a house (loan amount = $200,000) and inquire about the terms...

You would like to buy a house that costs $ 350000. You have $50,000 in cash...

You would like to buy a house that costs $350,000. You have $50,000 in cash that...

You would like to buy a house that costs $350,000. You have $50,000 in cash that...