Question

#9. A married couple purchases a home. After down payments and closing costs are accounted for,...

#9. A married couple purchases a home. After down payments and closing costs are accounted for, they owe 374 thousand dollars on their 30-year-mortgage loan. If the annual percentage rate for their loan is APR=0.032, calculate the monthly payment for this loan. Round your answer to two decimal places.
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Q-9)

Loan Amount = $374,000

Calculating the monthly payment of loan:-

Where, P = Loan amount = $374,000

r = Periodic Interest rate = 0.032/12 = 0.0026666

n= no of periods = 30 years*12 = 360

Monthly Payment of Loan = $1617.43

If you need any clarification, you can ask in comments.    

If you like my answer, then please up-vote as it will be motivating       

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.A couple has just purchased a home for $307,000.00. They will pay 20% down in cash,...
1.A couple has just purchased a home for $307,000.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of 3.60% APR with monthly compounding. The mortgage has a term of 30 years. What is the monthly payment on the loan? 2. A couple has just purchased a home for $307,000.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them...
A couple has just purchased a home for $348,400.00. They will pay 20% down in cash,...
A couple has just purchased a home for $348,400.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of 5.04% APR with monthly compounding. The mortgage has a term of 30 years. What is the monthly payment on the loan?
A couple has just purchased a home for $312,100.00. They will pay 20% down in cash,...
A couple has just purchased a home for $312,100.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of 5.64% APR with monthly compounding. The mortgage has a term of 30 years. What is the size of the loan taken out by the couple?
You hope to be able to purchase a home within 1-3 years after graduation. You expect...
You hope to be able to purchase a home within 1-3 years after graduation. You expect to have to save for the necessary down payment and closing costs without relying on financial help from your family or relatives. Your financial goal is to purchase a home in the $300,000 price range and have the available cash for the down payment and required closing costs for the type of mortgage financing that you select and are able to receive home mortgage...
After considerable negotiation with its owners, you have purchased a home for $625, 000. After a...
After considerable negotiation with its owners, you have purchased a home for $625, 000. After a 20 percent down payment, you finance the remainder under a twenty-year mortgage at the annual percentage rate (APR) of 3.76%). a. What are your monthly payments? Show ALL your work, including your use of the formula. b. Over time, what is the total cost of the home? After the second monthly payment, what is the total amount that you owe each in interest and...
A couple wishes to borrow money using the equity in their home for collateral. A loan...
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to​ 70% of their equity. They puchased their home 13 years ago for ​$69 comma 691. The home was financed by paying 15​% down and signing a 30​-year mortgage at 8.4​% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30​-year period. The net market value of the house is now​ $100,000. After...
Lou purchases a home for $350,000. He makes a down payment of 20% and finances the...
Lou purchases a home for $350,000. He makes a down payment of 20% and finances the remaining amount with a 15-year mortgage with an annual percentage rate of 4.25%. a. Find his monthly mortgage payment (excluding taxes and fees). b. How much principal and interest will he end up paying for his house?
Nancy Brock is buying her first home. It costs $85,000, and she will make a down...
Nancy Brock is buying her first home. It costs $85,000, and she will make a down payment of $15,000. She is planning on a 30-year loan at 8% interest. a. What is the exact monthly payment she will pay to the mortgage company? b. If Nancy is transferred to a new job in another city after owning the home for six years, what is the balance due the loan company when she sells the house?
A young couple take out a 30-year home mortgage of $145,000.00 at 6.9% compounded monthly. They...
A young couple take out a 30-year home mortgage of $145,000.00 at 6.9% compounded monthly. They make their regular monthly payment for 7 years, then decide to up their monthly payment to $1,200.00. a) What is the regular monthly payment? $ b) What is the unpaid balance when they begin paying the accelerated monthly payment of $1,200.00? $ c) How many monthly payment of $1,200.00 will it take to pay off the loan? payments d) How much interest will this...
You bought a house for 150,000.  The bank required a 20% down payment and gave you a...
You bought a house for 150,000.  The bank required a 20% down payment and gave you a 30-year mortgage loan for the remainder.  Assume an annual interest rate of 3.5% and a monthly repayment schedule.  What is your monthly payment?  After 18 years of payments, how much do you still owe?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT