Zefi & Acacia are thinking of purchasing a house at a cost of $320,000. They have saved
Fantastic news! We've Found the answer you've been seeking!
Question:
Zefi & Acacia are thinking of purchasing a house at a cost of $320,000. They have saved $80,000 as a down payment and the rest will be secured by a mortgage. The bank is offering a 25-year mortgage with a term of 5 years at a rate of 7% (APR) requiring monthly payments, at the end of each month.
- a) Calculate the amount of each payment.
- b) Calculate the monthly payments if they are made at the beginning of the month rather than the end.
- c) If Zefi & Acacia can only afford to pay $1,400 each month, how much would the bank allow them to borrow? (these payments are made at the end of each month).
- d) Assuming they secure the mortgage in part (c), how much of the 91'st mortgage payment is principal and how much is interest?
- e) How much interest would Zefi & Acacia pay over the life of the mortgage secured from part (c)?
Related Book For
Posted Date: