Question 1 - Tom wishes to purchase a property that has been valued at $300,000. He has 25% of this amount available as a cash deposit and will require a mortgage for the remaining amount. The bank offers him a 25-year mortgage at 2% interest. Calculate his monthly payments.
Round your answer to the nearest cent.
Do NOT round until you have calculated the final answer.

Question 2 - If Bobby takes out a mortgage for 30 years at an interest rate of 4% and his monthly repayments are $835.48, what is the principal loan amount?
Round your answer to the nearest ten dollars.
Do NOT round until you have calculated the final answer.

Question 3 - Ryan wishes to purchase a new boat and can afford monthly payments of up to $900 per month. Finance is available, and the terms are that the loan lasts for 8 years and the annual interest rate is 10%. What is the maximum price for a boat that Ryan's budget can afford?
Round your answer to the nearest hundred dollars.
Do NOT round until you have calculated the final answer.

Answer:

Step-by-step explanation:

Note - Since you have given multiple questions to solve, I will solve the first question for you. To get any particular question solved, please specify the question.

1) 

To calculate Tom's monthly mortgage payments, we can use the formula for a fixed-rate mortgage payment, which is:

M = P.r.(1+r)^n / [ (1+r)^n - 1]

Where:

M is the monthly payment

P is the principal amount (the remaining property value after the deposit)

r is the monthly interest rate (annual interest rate divided by 12 months)

n is the total number of payments (number of years multiplied by 12 months)

Given:

Property value (P) after the deposit: $300,000 - (0.25 * $300,000) = $225,000

Annual interest rate (r): 2%

Number of years (n): 25 years

First, calculate the monthly interest rate (r) by dividing the annual interest rate by 12:

r=2% / 12 ​=0.02/12=0.001667

Next, calculate the total number of payments (n):

n=25 years×12 months/year=300 monthsn=25 years×12 months/year=300 months

Now, plug these values into the mortgage payment formula:

M=$225,000 x 0.001667x (1+0.001667)^300​  / [(1+0.001667)^300−1]
 

Calculating this expression will give us Tom's monthly mortgage payment: M≈$963.96

So, Tom's monthly mortgage payment will be approximately $963.96 when rounded to the nearest cent.