M The following formula is used for figuring out a monthly home mortgage payment: 121 Lr...
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M The following formula is used for figuring out a monthly home mortgage payment: 121 Lr 1+ 1 12 12r L = the loan amount in dollars r = the annual interest rate a) What is the couple's down payment amount? b) What is the couple's loan amount? c) How much is each monthly payment? t = the number of years of the loan M = the monthly payment in dollars A couple is looking to buy a $390,000 home near Northern Essex CC. Bank of America will give them a 30-year mortgage at 3.2% annual interest for the cost of the house, after the bank receives a 10% down payment. d) At the end of 30-years, what is the total amount of money the couple will have paid for their home? e) How much total interest will they pay over time? f) After a certain period of time the original price of the house is essentially paid off and each monthly payment is going towards interest. How many of their monthly payments go toward interest? Round this value up to the next whole number. 18 points - Rework all questions, but this time for a 15-year mortgage at 2.5% annual interest. 6 points - Use at least 10 complete sentences and proper grammar and spelling to do analysis comparison between the 30- and 15-year mortgages. What are the pros and cons for each option? What are some factors that could affect the couple's choice? M The following formula is used for figuring out a monthly home mortgage payment: 121 Lr 1+ 1 12 12r L = the loan amount in dollars r = the annual interest rate a) What is the couple's down payment amount? b) What is the couple's loan amount? c) How much is each monthly payment? t = the number of years of the loan M = the monthly payment in dollars A couple is looking to buy a $390,000 home near Northern Essex CC. Bank of America will give them a 30-year mortgage at 3.2% annual interest for the cost of the house, after the bank receives a 10% down payment. d) At the end of 30-years, what is the total amount of money the couple will have paid for their home? e) How much total interest will they pay over time? f) After a certain period of time the original price of the house is essentially paid off and each monthly payment is going towards interest. How many of their monthly payments go toward interest? Round this value up to the next whole number. 18 points - Rework all questions, but this time for a 15-year mortgage at 2.5% annual interest. 6 points - Use at least 10 complete sentences and proper grammar and spelling to do analysis comparison between the 30- and 15-year mortgages. What are the pros and cons for each option? What are some factors that could affect the couple's choice?
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The image shows a word problem involving a mortgage calculation and subsequent questions based on the given mortgage formula Lets start by solving each question one by one For all the calculations we ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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