Kibata

Sign In

Our Services

Get 15% Discount on your First Order

Order Now
[rank_math_breadcrumb]

Quantative reasoning

  1. Assume that a family is purchasing a typical house by making a $30,000 down payment and then financing a $280,000 mortgage at an annual interest rate of 6.25% (a typical rate for a 30-year loan). The size of their monthly payment will depend on the term of the mortgage.

The formula or the Excel function “pmt” can be used to compute these monthly mortgage payments. If using Excel the 3 arguments of function “pmt” are:

Rate (the monthly interest rate):   0.0625/12

Nper (the total number of monthly payments) and

Pv (the mortgage amount)

  1. Find the monthly payments if the $280,000 was financed over 15 years.
  2. Find the monthly payments if the $280,000 was financed over 30 years.
  3. Multiply your answer to part (a) by the number of payments to find how much the family would need to pay in total over the life of the 15-year loan. Subtract the principal amount from this to give the amount of interest paid over the life of the loan.
  4. Multiply your answer to part (b) by the number of payments to find how much the family would need to pay in total over the life of the 30-year loan. Subtract the principal amount from this to give the amount of interest paid over the life of the loan.
  5. A standard rule for lenders is that a family’s house payment should not exceed 28% of their monthly income. For a family making $6500 per month, this would equate to $1820 per month. Assuming monthly costs of $350 for property tax and homeowner’s insurance, this would allow for a $1470 monthly mortgage payment.

The formula  or the Excel function “pv” can be used to compute the mortgage a family could afford.  If using Excel the 3 arguments of function “pv” are:

Rate (the monthly interest rate):   0.0625/12

Nper (the total number of monthly payments) and

Pmt (the monthly mortgage amount)

  1. Assuming that a family wants to make a $1470 monthly payment, give the mortgage that a family could afford at an annual interest rate 6.25% for a 15-year mortgage.
  2. Assuming that a family wants to make a $1470 monthly payment, give the mortgage that a family could afford at an annual interest rate 6.25% for a 30-year mortgage.
  3. Based on your answers to questions 1 and 2, what is the advantage of having a 15-year mortgage, and what is the advantage of having a 30-year mortgage? Which option do you think is wiser? 
  4. Proverbs 22:7 says, “The rich rules over the poor, and the borrower is the slave of the lender.” In light of this verse, and the Bible’s more general teaching on debt, many Christians have counseled that incurring excessive debt is undesirable. As financial expert Dave Ramsey puts it: “If you must take out a mortgage, pretend only 15-year mortgages exist.” Discuss how you would apply the Bible’s warning about borrowing when deciding how to go about purchasing a home. Does the Bible prohibit any kind of borrowing? Does it influence which type of mortgage is more attractive? Or does it not really apply to this type of loan?

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Order Now

Related Questions

Dimensional Analysis

Dimensional Analysis is a multi-step conversion process to convert one unit into another. You will use dimensional analysis to create a presentation this week.   Scenario:  A mother has been given a prescription for her child. She fills the prescription at her local pharmacy. When she gets home, she reads

MORTGAGE ASSESSMENT

Please find below the information you will need for your Mortgage Journal Assignment this week. Down Payment Required (List %):    15%   Number of Points at Closing      3 points   Mortgage Time Frame for Loan:      30 years    Interest Rate (List %):  Assume Points already lowered interest rate.    7 %  Annual Homeowner’s

DATA QUALITY

 Differentiate high-quality data from low-quality data and compare how low-quality data can adversely affect data analysis 

Unit III J Math

see attached The Unit III Journal entry is a reflection of scientific notation, a concept covered in Unit III as well as personal time management strategies. Be sure to complete  both parts A and B. Part A: In this unit, we cover the concept of scientific notation. In your own words,

MORTGAGE ASSESSMENT

Please find below the information you will need for your Mortgage Journal Assignment this week. Down Payment Required (List %):    15%   Number of Points at Closing      3 points   Mortgage Time Frame for Loan:      30 years    Interest Rate (List %):  Assume Points already lowered interest rate.    7 %  Annual Homeowner’s

How many meters in this velocity problem?

In  racing limits , two cars start side by side. Car A accelerates from 0 to 180 km/h in 6 seconds, while Car B accelerates from 0 to 200 km/h in 8 seconds. After 8 seconds, which car is farther ahead, and by how many meters (assuming constant acceleration)?

How many combinations of pieces

In  Block Blast , you have three pieces: a 2×2 square block, a 1×4 line block, and an L-shaped 3-block piece. If the board has exactly 8 empty spaces in a 4×4 area, how many different combinations of pieces can you place to completely fill those spaces (each piece used

sjmat

maintain a spending journal of EVERY dollar you spend on ANYTHING and EVERYTHING.  Use a spreadsheet to record your spending habits and categorize your spending.  Among dozens of other possible categories, you may consider: food, restaurants, entertainment, credit cards, loans, car payments, care maintenance, gas, housing, utilities, academic costs, and

hw

answer questions Governors State University Department of Health Administration and Informatics HLAD 4104 Health Care Economics Problem set 3 Total Points: 20 1. Given the following cost schedule for a regional hospital that seeks to maximize its profits, answer the following three questions: (6 points) Days of Hospital Care Supplied

math

Math Assessment- Submission Directions.htm Math Assessment- Submission Directions Due by 11:30 P.M on April 5, 2022   Similar to comprehension assessment submission, it might be a good idea to have a one-word document that provides just your report and results of the math assessment and two or more documents that

Statistics 2B

Assist with assignment Question 1[38 marks] 1.1 [11] The Mendelian theory states that the number of a certain type of peas falling into the classifications round and yellow, wrinkled and yellow, round and green, and wrinkled and green should be in the ratio 9:3:3:1. Suppose that 100 such peas revealed

Calculus help

I need these three questions answered within the next 15 mins

ANOVA

I need assistance in understanding the statistical formula ANOVA Overview For this week’s assignment you will read a published research study that uses some form of an analysis of variance (ANOVA) and you will examine a graduate program or job posting in the social sciences that uses statistics. Preparation Before

MUST USE EXCEL PLEASE READ AND VIEW ALL BEFORE ACCEPTING

Congratulations! An investor believes in you and your ideas! Not only are they committed to providing you with a generous investment of $10,000, but they’re also offering you a spacious 20×20 office space to establish your business. Moreover, you can breathe easy knowing that the investor has graciously taken upon

Statistics

I need assistance in understanding statistical formats. manifest.json { “jaspArchiveVersion” : “5”, “jaspVersion” : “0.95.1” } analyses.json { “analyses” : [], “meta” : null } index.html Results internal.sqlite

M1

math work needs done. have 50 questions to complete and work has to be shown. file will be added after