Why does it take 30 years to pay off a $150,000 loan, even though you pay $1,000 a month? | Homework.Study.com (2024)

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• Why can fully-amortizing payments be significantly higher, later in the life of a loan, than in the loan's initial payments?
• How many years will it take to pay off a $900 loan at 12% by making monthly payments of $25? The first payment is in one month.
• You borrowed $8,887.24 at 6.59%. If your payments are $2,599.52 a year, about how long will it take to pay off the loan? a. 2.47 years b. 3.42 years c. 4.00 years d. 5.00 years
• Why is the interest rate of a loan one of the most important things to consider when shopping around for loans?
• How long will it take to pay off a loan of $53,000 at an annual rate of 9 percent compounded monthly if you make monthly payments of $750?
• How long will it take to pay off a loan of $46.00 at an annual rate of 9 percent compounded monthly if you make monthly payments of $700?
• Why is the interest rate for an educational loan much higher than that of a home loan?
• How long will it take to pay off a loan of $50,000 at an annual rate of 9 percent compounded monthly if you make monthly payments of $500?
• Why do banks care about amortization periods? Particularly if you can pay down your mortgage on your own after the term ends.
• How does the maturity of a loan affect the monthly payments? What should you consider when selecting the maturity?
• Explain why the effective interest rate (rEAR) on a loan often is much higher than the simple, or stated, interest rate (APR)
• How many months will you pay on a car loan of a $28,919 with a payment of $559.09 per month at 6 interest per year?
• Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons
• If I buy a car that costs $10,000 and I can only afford to pay $250 per month, how many months will it take me to pay off the car if my car loan has a rate of 8.89% per year?
• Alex has taken out a loan of $180,000 with an annual rate of 11% compounded monthly to pay off hospital bills. If Alex can pay $3,500 a month, how many years will it take to pay off the loan?
• Why are loan payments under the simple interest method usually lower than loan payments under the add-on interest method?
• Suppose you have $25,000 in student loans. If you pay it back over 15 years at 7% compounded monthly, how much is your monthly loan payment?
• A bank loans you $20,000, amortizing over five years at 12% pay monthly. What will be your monthly payment? A. $462 B. $672 C. $356 D. $445
• You take out a $200,000 mortgage for 20 years at 6%. What are your monthly payments? (show your work)
• What is the interest rate on a loan of $24,000 with a payment of $475.23 per month for 5 years?
• What is the interest rate on a loan of $16,000 with a payment of $445.29 per month for 4 years?
• What is the interest rate on a loan of $8,000 with a payment of $222.65 per month for 4 years?
• What is the interest rate on a loan of $32,000 with a payment of $744.58 per month for 5 years?
• What is the term in loan agreement if you have to pay the interest of the entire loan period before you start paying the principal?
• Explain how term to maturity affects the price of a bank loan.
• Why can't we make a statutory change in how loans are amortized, so that the principal is paid much faster, compared to interest?
• Why might the actual real interest rate differ from the expected real interest rate? Would this possible difference be of more concern to you if you were considering making a loan to be paid back in 1 year or a loan to be paid back in 10 years?
• Discuss the advantages and disadvantages of the following type of term loan: Those that require equal periodic payments.
• A bank loans you $20,000, amortizing over five years at 12% pay yearly. How much interest will you pay in month 2 of the loan? A. $179 B. $356 C. $198 D. $231
• You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged?
• You borrow $230,000; the annual loan payments are $20,430.31 for 30 years. What interest rate are you being charged?
• You borrow $55,000; the annual loan payments are $3,180.66 for 30 years. What interest rate are you being charged?
• You borrow $230,000; the annual loan payments ar $20,430.31 for 30 years. What interest rate are being charged ?
• Calculate the APR of a loan for $9,850, including loan fees of $240, at 11% for 3 years.
• You have borrowed 75,000 at 6% for 10 years. This is a monthly loan. What do you owe the lender in month 120? A. $375 B. $75,375 C. $45,790 D. $0
• How much of your Year 3 payment will be used to repay the principal on the loan? i. $10,798.85 ii. $9,817.14 iii. $9,129.94 iv. $12,271.43 You are about to buy your first classic sports car. To do so, you have arranged to borrow $72,500 from your loc
• You are willing to pay $200 a month for 60 months. How much loan can you get if the annual interest rate for car loans is 5% over 60 months?
• What is the effective rate on a $10,000 installment loan with bi-monthly payments, $1,600 in interest, for 2 years? a. 16% b. 7.4% c. 29.5% d. 14.8%
• Suppose you borrow $9,875 and then repay the loan by making 12 monthly payments of $863.58 each. What is the effective annual rate (EAR) you are paying?
• You can afford a monthly car payment of $215. How much will you be able to borrow via a 3-year loan at 7.875% interest?
• How many years will it take you to pay off a mortgage of $100,000, if you are making monthly payments of $1,434.71 and the rate of interest you are being charged is 12.3040% compounded semiannually?
• How many years will it take you to pay off a mortgage of $100,000 if you are making monthly payments of $1434.71 and the rate of interest you are being charged is 12.3040% compounded semiannually?
• How long would it take you (how many payments and how many years) to pay off a credit card with an APR of 17.9% if you borrowed $2,025 and make minimum payments of $45 per month?
• How long would it take you (how many payments and how many years) to pay off a credit card with an APR of 17.9% if you borrowed $2,025 and make minimum payments of $100 per month?
• What is your monthly mortgage payment on a loan for $150,000, at 6% for 20 years?
• Alex has taken out a loan of $180,000 with an annual rate of 11% compounded monthly to pay off hospital bills. How long will it take to pay off the loan if he can pay $4,000 each month?
• You borrow $10,000 and will pay back the entire amount in 10 years. You are charged 6 percent interest per year. How much interest do you pay on this loan?
• Suppose you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly payments on this loan.
• You took out a 4.3% loan to purchase a $18,000 car. the length of the loan is 8 years. How much will she pay in interest?
• What is the yield to maturity (YTM) on a simple loan for $2,000 that requires repayment of $20,000 in five years' time?
• What is the yield to maturity (YTM) on a simple loan for $1,000 that requires a repayment of $4,000 in five-years' time?
• If you take out a 5-year car loan for $20,000 where you will make monthly payments of $400 (beginning one month from now), what is the APR of your loan?
• Left Bank has a standing rate of 8% (APR) for all bank loans and requires monthly payments. What is a monthly payment if a loan is for: (1) $100,000 for five years? (2) $250,000 for ten years? (3) $1,
• For a $13,000 student loan with a 6% APR, how much of the payment will go toward the principal and how much will go toward paying interest for each of the first six payments? Assume this is a 10-year
• How much time will it take for my personal loan to get approved?
• How much would be the monthly payment on a $23,000 auto loan over 6 years at 6%?
• You take out a $35,000 loan to buy a car. The loan is a 5 year loan with monthly payments and a 3.3% APR. Your monthly payment is $633.58 How much interest will you pay in the third year?
• A $45,000 new car loan is taken out with a 10% APR for 48 months. How much are monthly payments on this loan?
• You have just purchased a car and taken out a $55,000 loan. The loan has a five-year term with monthly payments and an APR of 5.7%. a. how much will you pay interest and how much will you pay princip
• How much is the payment on a $100,000 loan given an interest rate of 12%, and 60 monthly payments?
• You take out a $9,000.00 loan for 10 years with 7% interest compounded quarterly with quarterly payments. You decide to pay off the loan in 8 years. How much will you pay?
• What are the total payments over the whole term of the loan?
• You can pay off a loan either by paying the entire amount of $16,000 now or you can pay $10,000 now and $10,000 at the end of ten years. Which is preferable when the nominal continuously compounded in
• From which Indian bank did you take an education loan for an MS in US studies? If you have re-paid the loan amount, in how much time did you do it? Was there any pre-payment penalty?
• You borrow $100,000 for 18 years at an annual rate of 7%. What would be your fixed QUARTERLY loan payment?
• Annie White graduate graduated from college with a student-loan debt of $32,000. The interest rate on this debt is 0.5% per month. If monthly payments on this loan are $618.65, how many months will it
• What is the monthly payment of a $28,600 car loan at 9.65% interest for 5 years?
• If you borrow $100 from a bank at an APR of 10 percent compounded monthly for 1 year, how much do you need to payoff the loan?
• What annual payment would be required to pay off a four-year, $20,000 loan if the interest rate being charged is 7%?
• What is the yield to maturity (YTM) on a simple loan for $1,000 that requires a repayment of $4,000 in five years?
• A loan is offered with monthly payments and a 10%APR. What is the loan's effective annual rate (EAR)?
• What is the total interest paid over whole term of the loan?
• A loan shark offers you a loan of $500 today but you must pay back $550 in a month. What is the effective annual rate they are charging?
• How much interest would you pay to borrow $670 for eight months at 12 percent?
• 1. In general, what interest rates and fees are levied on secured short-term loans? 2. Why are these rates generally higher than the rates on unsecured short-term loans?
• If you have a $125,000 mortgage with a $700.00 monthly payment, payable over 30 years, what interest rate are you paying?
• Explain why a borrower is often required to purchase credit life and disability insurance, as a condition of receiving an installment loan. Briefly describe the basic features of an installment loan.
• How much interest will you pay over the life of your car loan if you borrow $8,000 over a 36 month period at an interest rate of 8%?
• If payments are constant, why does the amount of interest change over time? I)As the loan is amortized, the beginning balance, hence the interest change, increases and the repayment of principal increases. II)As the loan is amortized, the beginning bala
• You borrow $1,000 from a payday lending company and pay $20 interest for one month. What is the effective rate? a. 0.27% b. 26.82% c. 24% d. 126.82%
• What monthly payments are necessary to pay off a loan of $8,000 at 10 percent per year in 2 years? Show your complete solution.
• What monthly payments are necessary to pay off a loan of $8,000 at 10 percent per year in 3 years? Show your complete solution.
• On a 5-year, $27,000 car loan at 3% with monthly payments, how much principal will you pay during first three years of the loan?
• An interest of $122.43 is paid on a $1,260 loan. If the interest rate is 10.6% per year, what was the term of the loan?
• Why is the concept of 'amortization' applicable to a mortgage, but not to a personal loan?
• Suppose you borrow 11,000 for 5 years at 6% towards the purchase of a car. What would be the monthly payments and total interest for the loan?
• A borrower takes out a 10-year mortgage loan for $300,000 with an interest rate of 11.3%. What would the constant monthly payment be?
• A $10,000 car loan has payments of $361.52 per month for three years. What is the interest rate? Assume monthly compounding.
• Is going for a 25L home loan with a 50k salary per month a good idea?
• If you can afford monthly payments of $300 on an auto loan for 60 months at 6.9% interest (compounded monthly), what is your maximum loan balance given these terms? Please explain.
• A guy borrows $5000 and wants to repay it $190 per month starting at the end of this month. If the loan terms are 6% APR with monthly compounding, how many payments will he need to make to pay off th
• What is the APR, and why are lending institutions required to disclose this rate?
• You would like to purchase a car for $27,862. If the car loan is 7.00% financed over 5 years, what will the monthly payments be for this car?
• How much of your Year 2 payment will constitute interest on your loan? a)$4,479.94 b)$5,298.85 c)$6,021.43 d)$4,817.14 Your dream is about to come true. You are about to buy your first sports car. To do so, you have arranged to borrow $80,000 fro
• To pay for your education you have taken out $28,000 in student loans. If you make monthly payments over 13 years at 6% compounded monthly, how much are your student loan payments?
• You borrow $200,000 from a bank. The interest rate is 1.5% per year. How large should your monthly payments be to pay off your loan in 25 years? Assume payments at the beginning of each month.
• You borrow $200,000 from a bank. The interest rate is 5% per year. How large should your monthly payments be to pay off your loan in 25 years? Assume payments at the beginning of each month.
• If you take out a 30-year mortgage for $235,000 at a fixed interest rate of 7.5% (APR), what will your monthly payments be?
• A company wants a loan of $200,000. The loan is for 1 year and the lender charges 6% per year. What is the monthly payment of the company?
• A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of $1737.54. What is the APR of this loan? A) 6.25% B) 5.25% C) 7.25% D) 8.25%