Question

Benjamin decides to buy a house. He finds the house of his dreams for $483,000. He...

Benjamin decides to buy a house. He finds the house of his dreams for $483,000. He has $65,000 to put down. The bank offers him a 30 year loan at 4.25% interest. What is his monthly
payment?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

As per the details given in the information-
Loan amount = House amount - down payment
Loan amount = 483000 - 65000
Loan amount = 418000
bank loan afor 30 years at 4.25%
To calculate the monthly payment, enter the stroke in the financial calculator-
PV = -418000
N = 360(30*12 =360 , monthly payments )
I/Y = 0.354 (4.25/12 = 0.354)
CPT- PMT =2070
MONTHLY PAYMENTS = 2070

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

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
Mr. Khalid Al Bulushi is interested to buy the house at RO 105,000. He approached the...
Mr. Khalid Al Bulushi is interested to buy the house at RO 105,000. He approached the Bank Dhofar for a home loan. The bank has approved the loan application for a 20-year fixed-rate loan at 6% annual interest compounded annually and asked him to make 10% of property cost as a down payment. a) What would be the monthly installment Mr. Khalid needs to pay? b) What will be the total deferred payment Khalid has to pay? c) Why did...
John is about to make his dream of a house of his own come true. For...
John is about to make his dream of a house of his own come true. For years he has been saving for this moment and now, after months of searching for a suitable house for his family of four, he has found a spacious three-bedroom detached house with a little garden just outside of Dubai and is about to sign the purchase contract. He feels comfortable with the financing arrangement he has made. Requiring a 10 percent down payment on...
You have approached Commonwealth Bank for a loan to buy a house. The bank offers you...
You have approached Commonwealth Bank for a loan to buy a house. The bank offers you a $500 000 loan, repayable in equal monthly instalments at the end of each month for the next 30 years. Required: a. If the interest rate on the loan is 4.5% per annum, compounded monthly, what is your monthly repayment (to the nearest dollar)? b. What is your weekly payment if you wish to pay weekly instalments and the interest rate is compounding weekly?...
You buy a house for $300,000. The mortgage company offers a 30 year loan with an...
You buy a house for $300,000. The mortgage company offers a 30 year loan with an annual interest rate of 10% (but the loan requires monthly payments and the interest will compound monthly). Your monthly house payment is? Show equation please
Person P got a house for $200,000 and made a $60,000 down payment. He obtained a...
Person P got a house for $200,000 and made a $60,000 down payment. He obtained a 30 - year loan for the remaining amount. Payments were made monthly. The nominal annual interest rate was 6%. After 10 years (120 payments) he sold the house and paid off the loan’s remaining balance. (a) What was his monthly loan payment? (b) What must he have paid (in addition to his regular 120th monthly payment) to pay off the loan?
Aya and Harumi would like to buy a house and their dream house costs $500,000. They...
Aya and Harumi would like to buy a house and their dream house costs $500,000. They have $50,000 saved up for a down payment but would still need to take out a mortgage loan for the remaining $450,000 and they’re not sure whether they could afford the monthly loan payments. The bank has offered them an interest rate of 4.25%, compounded monthly. How much would they have to be able to afford to pay each month in order to pay...
You friend Stephen is planning to buy a house. He believes he can afford a mortgage...
You friend Stephen is planning to buy a house. He believes he can afford a mortgage payment of $3,750 per month. The current interest rate on a 30 year mortgage is 3.25% per year. What is the largest mortgage he can afford based on a 30 year loan if the lender requires a 20% downpayment? How much does he need in down payment for the most expensive house he can afford? ]
Derek decides to buy a new car. The dealership offers him a choice of paying $555.00...
Derek decides to buy a new car. The dealership offers him a choice of paying $555.00 per month for 5 years (with the first payment due next month) or paying some amount today. He can borrow money from his bank to buy the car. The bank requires a 6.00% interest rate. What is the most that he would be willing to pay today rather than making the payments? Derek plans to buy a $27,733.00 car. The dealership offers zero percent...
Eighteen years ago, George Jetson borrowed $525,000 to buy a house in California. The interest rate...
Eighteen years ago, George Jetson borrowed $525,000 to buy a house in California. The interest rate on his 30 year, monthly payment loan, was 6.375% p.a. Assuming that George made all of his required monthly payments on time, what is the payoff on his loan immediately after he made his most recent payment (i.e., payment number 216)?
Andy takes out a fully amortized 30 year loan at 5.9% for his $350,000 house (No...
Andy takes out a fully amortized 30 year loan at 5.9% for his $350,000 house (No down payment). 15 years later, he wins the lottery and decides to pay off his house immediately. How much interest did he save by not holding onto the loan for the full 30 years assuming no early payment penalty? Can solve using the simple finance functions on calculator.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT