1. Theresa and Raul purchased a house for $200,000. They made a down payment of 15%...

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1. Theresa and Raul purchased a house for $200,000. They made a down payment of 15% of the purchase price and secured a 30 year conventional home mortgage at 5.8% per year compounded monthly on the unpaid balance. a. What is their monthly payment? N = 1% = PV = PMT= Calculator Display: Final Answer: N = 1% = PV = PMT= b. What is their outstanding principal after 10 years? Calculator Display: Final Answer: |FV = Page 1 / 2 P/Y = C/Y = 12 12 PMT: End - FV = P/Y = C/Y = PMT: c. The house is worth $380,000 after 10 years. How much equity do Teresa and Raul have in their house after 10 years? Q + 12 12 End 1. Theresa and Raul purchased a house for $200,000. They made a down payment of 15% of the purchase price and secured a 30 year conventional home mortgage at 5.8% per year compounded monthly on the unpaid balance. a. What is their monthly payment? N = 1% = PV = PMT= Calculator Display: Final Answer: N = 1% = PV = PMT= b. What is their outstanding principal after 10 years? Calculator Display: Final Answer: |FV = Page 1 / 2 P/Y = C/Y = 12 12 PMT: End - FV = P/Y = C/Y = PMT: c. The house is worth $380,000 after 10 years. How much equity do Teresa and Raul have in their house after 10 years? Q + 12 12 End

Answer rating: 100% (QA)

a To calculate their monthly payment we need to first calculate the present value PV of their mortga... View the full answer