How much would you pay the bank

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Reference no: EM132019618

Suppose you want to buy a house and can afford monthly payments of principal and interest of about $1,000. If you finance the loan over 20 years at 12%, what is the maximum price you could pay, that is how much is your loan amount you need to borrow to buy the house, assuming no down payment?

You are currently making annual payments to a local bank of $1, 200 per year. Your loan with the bank has a remaining life of 5 years.

The interest rate on the loan is 15 percent per year. If you decide to repay the entire loan today, how much would you pay the bank?

a. What would be the monthly payment on a $10,000 auto loan to be repaid over the next 60 months if the monthly interest rate was one percent?

b. what would be the monthly payment on the $10,000 auto loan if it has to be repaid over the next 60 months at the beginning of the month if the monthly interest rate was one percent?

Reference no: EM132019618

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