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Home loans

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Question

Two more question I am stuck on.  I can’t figure out how to complete in Excel.  Here they are:Home loans

typically involve “points,” which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $190,000 and 3 points are charged, the loan repayment schedule is calculated on a $190,000 loan but the net amount the borrower receives is only $184,300. Assume the interest rate is 1.25% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 132 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.)

Next Question:

A couple will retire in 50 years; they plan to spend about $24,000 a year in retirement, which should last about 25 years. They believe that they can earn 7% interest on retirement savings.
a.If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
  Annual payment$  
b.How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $54,000 on their child’s college education? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
  Annual payment$
 
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In April 2013 a pound of apples cost $1.42, while oranges cost $1.06

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Question

In April 2013 a pound of apples cost $1.42, while oranges cost $1.06. Three years earlier the price of apples

was only $1.21 a pound and that of oranges was $.92 a pound.

a.What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
  Compound annual growth rate% per year  
b.What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
  Compound annual growth rate% per year  
c.If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
  Price$  
d.If the same rates of growth persist in the future, what will be the price of oranges in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
  Price$  
 
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You take out a 20-year $300,000 mortgage loan

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Question

You take out a 20-year $300,000 mortgage loan with an APR of 12% and monthly payments. In 10 years you decide to

sell your house and pay off the mortgage. What is the principal balance on the loan?(Round the monthly loan payment to 2 decimal places when computing the answer. Round your answer to 2 decimal places.)

What is the principle balance on the loan?

 
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A store will give you a 3.25% discount

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Question

A store will give you a 3.25% discount on the cost of your purchase if you pay cash today. Otherwise, you will be

billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

what is the effective annual rate?

 
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