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

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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.

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders , Marcia Cornett

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Posted Date: Sep 20, 2020 12:30 AM

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

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Purchase price 175000 Down payment 175000 x 20 35000 Mortgage Rate 775 Loan Period 180 Months Loan A... View the full answer

Financial Markets and Institutions

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