Rich buys a house for $200,000 and finances the purchase by making a 20% down payment and financing the remaining balance with a 30-year mortgage at 5.4% compounded monthly.
(a) What is the monthly payment on this mortgage?
Monthly payment = $898.45.
Hint: The answer is a dollar amount and should include a dollar sign and have exactly two decimals.
(b) What is the balance on this mortgage after 15 years?
Balance after 15 years = $110675.66.
Hint: The answer is a dollar amount and should include a dollar sign and have exactly two decimals.
(c) How much interest would be paid over the full 30 years of the loan?
Total interest paid = _______________.
Hint: The answer is a dollar amount and should include a dollar sign and have exactly two decimals.
I have been struggling with this question all day and finally decided to get some feedback on what I've been doing wrong. I answered the first two parts of the problem but was confused by what the last question was asking. And believe me, I have checked numerous websites for help and an explanation. I appreciate any and all help. Thanks!
(a) What is the monthly payment on this mortgage?
Monthly payment = $898.45.
Hint: The answer is a dollar amount and should include a dollar sign and have exactly two decimals.
(b) What is the balance on this mortgage after 15 years?
Balance after 15 years = $110675.66.
Hint: The answer is a dollar amount and should include a dollar sign and have exactly two decimals.
(c) How much interest would be paid over the full 30 years of the loan?
Total interest paid = _______________.
Hint: The answer is a dollar amount and should include a dollar sign and have exactly two decimals.
I have been struggling with this question all day and finally decided to get some feedback on what I've been doing wrong. I answered the first two parts of the problem but was confused by what the last question was asking. And believe me, I have checked numerous websites for help and an explanation. I appreciate any and all help. Thanks!
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$163,441.74 not 100 percent sure used a online calculator will give u link, but after 20 percent down loan amount is 160,000. will give u link i used hope it helps, make sure u do top and bottom calculators cause Second one have to include purchase date of today and put 40,000 paid down on last box under one time payment for down payment, on top first line 160,000 is loan amount since down payment was made and then after u calculate both shows total interest on bottom, which is what i have put above. i hope this helps you and i am not confused will give you the link. (pretty sucky that interest in end is more than loan amount crazy)
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
sorry if i misunderstood the question hope it helps don't know how to get two decimals though in any money amount, never seen that unless is at end. good luck
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
sorry if i misunderstood the question hope it helps don't know how to get two decimals though in any money amount, never seen that unless is at end. good luck