Lina is looking to purchase her first home and wishes to have a conventional mortgage as this will allow her to have access to better interest rates. She is looking to make an offer on a home for $300,000. As her budget is tight, she wants to know the minimum amount needed for a down payment for a conventional mortgage. A $5,000 B $45,000 $15,000 D $60,000 E $25,000
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- 6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Round your answers to the nearest cent.)Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Use Table 15.1.) (Round your answers to the nearest cent.) ****TABLE ATTACHED****** (Monthly Payment) a. 30 years, 5%= b. 30 years, 5 1/2% c. 30 years, 6%= d. 30 years, 6 1/2%= (Total cost of interest) a. 30 years, 5%= b. 30 years, 5 1/2% c. 30 years, 6%= d. 30 years, 6 1/2%=
- Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house that sells for $90,000. If she puts 10% down, what will her monthly payment be at (a) 30 years, 5%; (b) 30 years, 512%512% ; (c) 30 years, 6%; and (d) 30 years, 612%612% ? What is the total cost of interest over the cost of the loan for each assumption? (Round your answers to the nearest cent.) can you please help me with all 4 answers? tyMary has found a beautiful home on Richmond Rd. that she loves.The price of the home is $285,000. If Mary and George qualify for a30-year loan at a fixed interest rate of 3.99%, can they afford thehome? (Hint: Don't forget about the down payment!) 4. Mary and George finally decide on a 3 bedroom home on ManchesterCt. The price of the home is $188,000. a) What is the total amount the couple will have to finance? b) If the couple purchases the home on a 30-year loan at a fixedinterest rate of 3.99%, what will be their monthly payment? c) What is the total cost of the home using the 30-year loan.(Hint: Don't forget to include the down payment!) d) How much of the total cost is interest? e) Mary's friend, Beth, suggests they check into a 15 year loan and comparethe monthly payments and the overall cost of the home. If Mary andGeorge purchase the home on a 15-year loan with a fixed interest rate of3.99%, what with be their monthly payment? f) What is the total cost of the home using the…5. Kumal wants to sell her townhouse in Whitehorse. She will spend $2100 updating her home. She has $2100 in cash, but she plans to buy a $2100 RRSP. She will need 120 d to pay off any loan. Interest is compounded daily. a) Complete the chart. Option secured personal loan RRSP loan no loan credit card Detalle Buy the RRSP with $2100 cash. Pay for updating with the loan using her home equity as collateral. Pay for updating with the $2100. Buy an RRSP with an RRSP loan. Pay for updating with the $2100. Do not get an RRSP. Buy an RRSP with the $2100. Pay for updating with a credit card with a 30 d grace period. 1125 APR 2.75% 1.75% 0% 20.1% Total amount A-PH1+ 62 b) Which option should Kumal choose? Explain why. c) Which option should Kumal not choose? Explain why. d) Suppose Kumal uses a RRSP loan instead of her credit card. How much interest will she save? What is equity? What is it used for? Total Interest/A-P REFLECTING Suppose Kumal has a loan with simple interest nstead of compound…
- Angela is buying her first home. She has saved $60, 000 for a downpayment, intending to make a down payment of at least 20% of the purchase price. Angela wants to make an offer on a home which is slightly over her budget at $325,000. As she does not have any additional funds available to increase her downpayment, she needs to consider a high ratio mortgage. Her lender explains that she will need to pay mortgage default insurance premiums, and that the premiums can be paid in cash or financed over the first mortgage term. He provides the following premium rate schedule: Loan - to - Value Ratio Mortgage Default Insurance Premium (As a percentage of mortgage loan) Up to 80% 2.40% Up to 85% 2.80% Up to 90% 3.10% Up to 95% 4.00% Angela is pre- approved for a mortgage with a 25-year amortization period and an equivalent annual interest rate of 6.39% for a five-year term. Payments will be due at the end of each month. If Angela finances the mortgage default insurance premiums over her first…A) Ms. Diana wants to take off next three years of work to travel around the world. Sheestimates her average annual cash need is $20,000. If she needs more funds, she will arrangefrom alternative ways i.e. taking loans or doing some odd jobs etc.Ms. Diana believes that she can invest her savings at 10% until she depletes her funds.You are required to find out how much she should invest now to fund her future cashflow if she is able invests at 10% annually OR what amount she has to invest if she onlyearns 7% annually.The relevant factors from table you will need for this calculation are given below.a) Future value interest factor for a one-dollar annuity compounded from the table at 10% is3.3100 and at 7% is 3.2149 on period#3b) Present value interest factor for a one-dollar annuity discounted from the table at 10% is2.4869 and at 7% is 2.6243 on period#3B) What is the difference between Present value & Future value?___________________________________________In this question we are going to look at how small differences in your saving and spending practices can have big effects on your future financial circumstances. After paying all of your yearly rent/mortgage payments as well as other living costs like food and electricity, you have $2000 left over. You have the option of spending or saving this money or a combination of both. You are 21 today and you plan to retire when you are 65. If you put money in your savings account you will receive 5% per year compounded yearly. Make a diagram that shows how much you have in savings in each of the following cases: A. You spend $1500 and save $500 B. You spend $1000 and save $1000 C. You spend $500 and save $1500 D. You spend $0 and save $2000 Graph all situations on one graph. Assume that the amount of money you have after your living costs is constant at $2000 throughout your working life. thanks!!
- Jana has $2.000 saved but doesn’t want to spend it on a down payment. She wants to keep it in her emergency fund, in savings. She wants to buy a car and thinks she can afford monthly payments of $300. If she can finance a vehicle with a 6%, 5-year loan from a credit society, what is the maximum loan amount Jana can afford? (Round to the nearest dollar.) Question 31 options: $12,528 $14,218 $15,518 $16,218 $18,028You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $110,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}I need help creating this in Excel Jane wants to buy a new car but has decided that by the time she saves $33000 to buy the new car she wants the price of the car will have gone up. She decides to borrow the money and purchase the car today. She would like to pay off her car in four years. The local bank will loan her $33000 at 8.5% APR. Construct a loan amortization for her loan. She wants to know how much the payments will be and what the total cost of the loan is. The dealer has offered to finance her at 1% APR with a monthly payment of $250 for four years. Unfortunately the balance will be due at the end of four years. Construct a loan amortization for this loan. Jane wants to know how much she will owe at the end of the four years. You can fit them both on one spreadsheet. Upload your finished spreadsheet.