Question: F16 X E G H K L M N A B You have decided to purhase a house for$400,000 and evaluating your If would like

F16 X E G H K L M N A B You have decided to purhase a house for$400,000 and evaluating your If would like to purchase a car for $50,000.00 with annual options for a mortgage. Assume that your down payment will be 20% payments for 6 years @ 6% of the purchase price, payments will be made monthly. What will your annual payments be? QUESTIONS: What will your monthly payments be? a. Based on the information above what is the monthly payment for the 30 year mortgage? b. What would the monthly payment be for the 15 year mortgage? C. What is the dollar difference in total monthly payments? d. What causes this difference? 10 11 12 Purchase Price Price CAR 13 Downpayment Percentage FV 14 Mortgage Amount pmts 15 Payments Per Year rate 16 17 30-Year Mortgage 18 Interest Rate 5.00% 19 Term in Years 30 20 Payment Amount PMT(Rate, Nper,PV,FV,type) 21 Total of Payments Rate = annual rate/times pre year 22 PMT(Rate, Nper, PV, FV, type) Nper = years * times per year Rate = annual rate/times payments per year 23 Rate = annual rate/times pre year 24 Nper = years * times per year 25 26 15-Year Mortgage 27 Interest Rate 4.625% 28 Term in Years 15 29 Payment Amount 30 Total of Payments 31 32 Total Payment Difference 33 34 You have decided to purhase a house for$400,000 and evaluating your 35 options for a mortgage. Assume that your down payment will be 20% 36 of the purchase price, payments will be made monthly. QUESTIONS: 37 a. Based on the information above what is the monthly payment for the 30 year mortgage? 39 b. What would the monthly payment be for the 15 year mortgage? o C. What is the dollar difference in total monthly payments? 41 d. What causes this difference + Single Sum Annuties N & I Nominal & Effective

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