A couple, Meghan and Harry, are going to buy a house priced at $588,000. They are getting
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Question:
A couple, Meghan and Harry, are going to buy a house priced at $588,000. They are getting a 30-year mortgage that has an interest rate of 4.22%. To get this loan, they will need 15% down payment. The bank is charging them 1.5 points.
Part a) (3 pts) How much will the down payment be?
- Write out...
- 1) your work (round your answer to the nearest cent), and
- 2) write the answer in a complete sentence.
Part b) (3 pts) How much money will Meghan and Harry need to borrow?
- Write out...
- 1) your work (round your answer to the nearest cent), and
- 2) write the answer in a complete sentence.
Part c) (5 pts) What is their monthly payment going to be, in order to repay the principle and interest?
- Write out
- 1) the correct formula with variables (e.g. P0, PN, N, r, etc.), and
- 2) the correct formula with the numerical values (round your answer to the nearest cent), and
- 3) write the answer in a complete sentence.
Part d) (3 pts) What is the cost of the 1.5 points?
- Write out...
- 1) your work (round your answer to the nearest cent), and
- 2) write the answer in a complete sentence.
Part e) (5 pts) How much will they pay in total at the end of the 30 years?
- Write out...
- 1) your work (round your answer to the nearest cent), and
- 2) write the answer in a complete sentence.
Part f) (3 pts) How much of that total is interest?
- Write out...
- 1) your work (round your answer to the nearest cent), and
- 2) write the answer in a complete sentence.
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