Question: A young couple buying their first home borrow $ 7 0 , 0 0 0 for 3 0 years at 7 . 5 % ,

A young couple buying their first home borrow $70,000 for 30 years at 7.5%, compounded monthly, and make payments of $489.45. After 5 years, they are able to make a one-time payment of $2000 along with their 60th payment.
(a) Find the unpaid balance immediately after they pay the extra $2000 and their 60th payment. (Round your answer to the nearest cent.)
$
Incorrect: Your answer is incorrect.
(b) How many regular payments of $489.45 will amortize the unpaid balance from part (a)?(Round your answer to the nearest whole number.)
Incorrect: Your answer is incorrect.
payments
(c) How much will the couple save over the life of the loan by paying the extra $2000?(Use your answer from part (b). Round your answer to the nearest cent.)
$

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!