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You plan to purchase a $175,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered

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You plan to purchase a $175,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 7.75 percent. You will make a down payment of 20 percent of the purchase price.

a. Calculate your monthly payments on this mortgage.

b. Calculate the amount of interest and, separately, principal paid in the 60th payment.

c. Calculate the amount of interest and, separately, principal paid in the 180th payment.

d. Calculate the amount of interest paid over the life of this mortgage.

Expert Answer:

Answer rating: 100% (QA)

Purchase price 175 000 Down payment 175 000 x 20 35 000 Mortgage Rate 7 75 Loan Period 180 Months Lo View the full answer


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Related Book For  answer-question
Financial Markets and Institutions

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders , Marcia Cornett

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Posted Date: September 20, 2020 00:30:07
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